Doing Business with UAE INDO-ARAB CHAMBER OF COMMERCE & INDUSTRIES Content

Editorial Message Map of UAE 7 UAE A Country Profile 8 The Economy 10 ØFinancial Services 22 ØOil & Gas 24 ØInfrastructure 34 ØElectricity & Water 43 Publised by ØRenewable Energy 47 Mrs. Sunanda Rajendran Ø Executive Director Telecommunications for Indo-Arab Chamber of & Post 52 Commerce & Industries ØEducation 55 81/82, Mittal Court, ‘C’ Wing, 8th Floor, Nariman Point, Mumbai - 400 021. ØHealthcare 63 Tel. 91-22-40606162 Ø Fax : 91-22-22821279 Environment 67 E-mail : [email protected] Exhibitions & Expo 72 Web: www.iacci.org India-UAE Relations 81

Disclaimer Useful Links 85 Every effort has been made to avoid errors Important Information 92 or omissions in this publication, in spite of this errors may creep in. Any mistake, Free Trade Zone 93 errors or discrepancies noted may be brought to our notice, which shall take care Important Contacts 94 in the next edition. It is notified that neither the publisher nor the author or any kind, in Doing Business in India 97 any manner, therefrom. It is suggested that to avoid any doubt the reader should cross Indo-arab Chamber : check all the facts, law and contents of the publication before acting or relying on it. Serving India & Arabia 101

81/82, Mittal Court “C” Wing, 8th Floor, Nariman Point, Mumbai - 400 021. INDIA Tel.: 91-22-40606162 / 22821774 / 1629 / 1512 ? Fax: 91-22-22821279 Email: [email protected] / [email protected] ? Website : www.iacci.org

INDO-ARAB CHAMBER OF COMMERCE & INDUSTRIES

Editorial fuel base to highly diversified all - round growth The United Arab Emirates, a federation of seven in manufacturing and trade, with the services emirates was formed in 1971. Though Abu Dhabi industry also seeing exponential development in the capital of the country still Dubai is known as sectors such as finance, tourism, real estate and commercial capital. It enjoys a desert climate, information and communication technology. warm & sunny in winter hot & humid during the Great strides have also been made in the social summer. sector fields of education, healthcare and general welfare of the people. The UAE shares its borders with the kingdom of Saudi Arabia (KSA) and Oman and has a land The UAE has a vibrant free economy with a mass of 83, 600sq km, four-fifths of which is significant annual trade surplus. Successful desert. Around 19 per cent of its estimated efforts have been made to diversify away from population of 5 million people are UAE nationals dependence on Oil & Gas exports & a solid industrial base has been created together with a It enjoys a high degree of political stability & is very strong services sector. The establishment of the only state in the Arab World to have a free zones has been an important feature of this working federal system that has stood the test of diversification policy & reform of property laws time, The UAE's foreign policy is derived from a has given a major boost to real estate & tourism set of guiding principles, amongst which are a sectors. Gammon India, Billiomonia's, Dheeraj, deep belief in the need for justice in Hiranandani to name a few Indian Companies international dealings between states, including have established themselves. the necessity of adhering to the principal of non interference in the internal affairs of others & the Dubai is a shining example of what a non-oil pursuit. The population is about 5.06 million. economy can achieve. With only fraction of Abu Emirates are a tolerant, forward - looking people Dhabi’s oil resources it was the first emirate to with a strong sense of tradition. take bold steps towards economic diversification by moving into manufacturing, trade, finance Today, the UAE is a modern and dynamic nation, and tourism, thus leapfrogging from the with over 82.7 per cent of its population living in category of a developing economy into the realm urban areas. The transition to modernity has of the developed world. come. through the sustained efforts of the rulers of each emirate, but it was the overarching vision Women in U.A.E. are in the forefront in both the of Sheikh Zayed that helped lift the country out govt. & private Sector. At a broader level, the of its feudal past into the modern era. U.A.E. also championed the cause of women in the region by hosting the 2nd Arab Women's The transformation from a land of desert dunes organization conference in November 2008. to a modern landscape of highways, high-rises and huge shopping malls was made possible The UAE has already established itself on the with the wealth generated by one of the international sporting stage, hosting many of the country’s major natural resources - oil. The world's major events in a wide range of sports. economy still relies on oil revenues but the years These events not only attract large numbers of have seen a progressive shift away from a fossil competing and sports enthusiasts from around

4 Doing Business with UAE - 2 - the globe to the UAE, they also see some of the (Cereals, Sugar, Fruits & Vegetables, Tea, Meat, country's own top sportsmen and women in and Seafood), Textiles (Garments, Apparel, action. Synthetic fibre, Cotton, Yarn) and engineering & Machinery Products and Chemicals. Cricket is another very popular sport in the UAE with events being organized throughout the Major items imported by India from UAE Emirates at purpose built venues such as the Petroleum and Petroleum Products, Precious magnificent Zayed International Cricket Metals, Stones, Gems & Jewellery, Minerals, Stadium, the new Cricket Stadium being built at Chemicals, Wood & Wood Products. Dubai Sports City and Sharjah's world-class stadium. The UAE firmly believes that free trade is a pre- requisite for strengthening the international Camel racing, Horse racing, Golf, International trade system. The country has relatively low motor sports are very popular sports. border barriers to trade and has been a UAE was the 2nd largest trading nation in the contracting party to the WTO-sponsored Arab world. FDI is the highest in the region at General Agreement on Tariffs and trade (GATT) around 19billion US $ the government has been since March 1994 and the General Agreement on very active in its efforts to improve conditions to Trade in Services (GATS). It has signed several meet with aspirations of International, regional Free Trade Agreements (FTAS), entering into & local investors with India the bilateral trade negotiations and agreements either individually has reached to 18 Bn $. or as part of the GCC. Given its tax-free environment. world-class UAE has the 6th largest proven oil reserves & the infrastructure, low tariffs and 100 per cent fifth largest proven natural gas reserves in the ownership for foreign investors in selected word; moreover it is the world's 3rd largest zones, the UAE is the ideal location for setting up exporters of crude oil. new business. A gateway for investors to reach About 8.5 million arrivals of tourist are there out to neighboring GCC and Middle East and every year. It has more than 3 million Asian North African (MENA) markets as well as the contract workers working in sectors as diverse as South Asian sub-continent, it has evolved into a Hospitality, Health care, Technology, Oil & Gas, financial hub of the region. Today, the UAE Financial Services & Constructions. stands as a strong nation built on the foundations of security, hope and economic 'UAE is Gateway to Gulf' strength, its modern outlook and progressive I, on behalf of the chamber of on behalf of the society bringing it into the front ranks of the Arab entire business fraternity express our pro found World. Ably guided by its leaders, the country appreciation. Hoping our joint efforts will bring remains peaceful and investor- friendly, its fruitful reward in further strengthing the century outlook bright, though challenging. People from old Indo-UAE relationship. Last but not the least, across the world find it an attractive place to live, sincere thanks and gratitude to Ambassadors work, do business - and save money in, as both in India & UAE, Consul General both in diversification countinues to be the key India & UAE and others for their valued support component of its strategy to further develop its and co-operation in our humble effort of economy. bringing out this publication successfully. Major items exported by India to UAE : Sunanda Rajendran Petroleum Products, Precious Metals, Stones, Executive Director / Editor Gems & Jewellery, Minerals, Food Items 81/82, Mittal Court “C” Wing, 8th Floor, Nariman Point, Mumbai - 400 021. Tel.: 91-22-40606162 / 22821774 ? Fax: 91-22-22821279 Email: [email protected] / [email protected] ? Website : www.iacci.org 5 Doing Business with UAE

MESSAGE I am happy to know that Indo-Arab Chamber of Commerce & Industries, Mumbai, is bringing out a special publication on United Arab Emirates. I am sure, this publication will serve as a useful reference work and will help in nurturing the relations between India and the Arab world especially in the bilateral trade.

With an annual bilateral trade turnover of more than US$ 44 billion, India and UAE are the largest trade partners for each other. Efforts being made by organizations like Indo-Arab Chamber of Commerce and Industries will, definitely, further increase the trade volume between India and UAE.

I wish the Chamber my best wishes for their work and convey good luck for their future endeavours.

6 Doing Business with UAE

Map of UAE

7 Doing Business with UAE UAE... A Country Profile

Country name: United Arab Emirates (UAE). Location: South-east of the Arabian Peninsula, on the south and south-eastern shores of the Political system: Constitutional federation of Arabian Gulf and western shores of the Gulf of seven emirates, Abu Dhabi, Dubai, Sharjah, Oman; land borders with Oman and Saudi Ajman, Umm al-Qaiwain, Ra’s al-Khaimah and Arabia. Fujairah, formed in 1971. Latitude/Longitude: Approx from 26.08 to 22.5 President: H.H. Sheikh Khalifa bin Zayed Al 0N and 55.50 to 58.370E. Nahyan, Ruler of Abu Dhabi. Area: Approx 82,880 square kilometers. Vice President & Prime Minister: Federal supreme Council, comprising the Rulers of the Topography: Low-lying coastal plain merges into seven emirates; a Cabinet or Council of the sand dunes of the Rub al-Khali desert, rugged Ministers; and a partially elected parliamentary mountains along eastern border with Oman. body, the Federal National Council. Elevation extremes: Lowest point is at sea level and highest point is on the peak of Jebel Yibir, at Administrative divisions: Each of the seven 1527 metres. emirates has its own local government, with respective municipalities and departments. Climate: Arid desert, warm and sunny in winter, hot and humid in summer, generally cooler in the Capital: Abu Dhabi. eastern mountains. Average annual rainfall is approx 100 mm. National Day: 2 December. Natural resources: Most important are oil and Time: Four hours ahead of GMT. natural gas, more than 90% of which are located in Abu Dhabi Population: 5.06 million (est. 2009). Currency: Emirati dirham (Dh or AED). Annual Population growth rate: 6.3% (approx). Exchange rate: Dh3.67 per US dollar. Language: Arabic. Flag: Three equal horizontal bands of green (top), white, and black with a wider vertical red Religion: Islam, practice of all religious beliefs is band on the hoist side. allowed. 8 Doing Business with UAE

Life expectancy at birth: 78.5 years.

GDP per capita: Dh195,000 (US$53,133.5) (2008).

UN Human Development Index ranking: 35th out of 182 countries (2009).

Human rights conventions to which the country Trade balance: Dh231.09 billion (2008), up is a party: International convention on the 35.3% on 2007. Elimination of All Forms of Racial Discrimination; International Covenant of Civil and Political Free-zone exports: Dh97.46 billion (2008), Rights; Convention on the Elimination of All 16.4% increase on 2007. Forms of Discrimination Against Women; Convention of the Rights of the Child; Re-exports: Dh345.78 billion (2008), up 33.4% Convention on the Rights of People with on 2007. Diabilities; International Labour Organisation Convention on Minimum Age; signatory to the Total imports (FOB): Dh735.70 billion (2008), up Arab Charter on the Human Rights. 33.4% on 2007.

Fiscal year: 1 January to 31 December. Value of oil exports: Dh313.74 billion (2008), an increase of 39.7% on 2007. Industries: Oil & gas, petrochemicals, aluminium, cement, ceramics, ship repair, Value of gas exports: Dh39.08 billion (2008), up pharmaceuticals, tourism, transport, real estate, 37.1% on 2007. financial services. Weekend: Friday and Saturday for government Oil exports: 2.3 million barrels of crude oil per institutions, many private companies operate a day (2009), world’s fourth largest exporter of six-day week. crude oil. International country code: 971. Gas Production: 7 billion standard cubic feet per Internet country code: ae. day (2009). Fixed-line penetration rate: 30%. Oil reserves: 97.8 billion barrels, sixth largest in the world, of which Abu Dhabi holds 92.2 billion Mobile Phone subscribers: 10.3 million (est. barrels or 94%. 2009).

Natural gas reserves: 227.1 trillion cubic feet, Ports: Mina Zayed, Jebel Ali, Mina Rashid, seventh largest in the world, Abu Dhabi holds Fujairah, Khor Fakkan, Mina Saqr, Sharjah, Abu over 90%. Dhabi is building a major new port, Khalifa Port & Industrial Zone, at Taweelah. Total GDP at current prices: Dh934 billion (2008). International airports: 7.

Real GDP growth rate: 7.4% (2008). Source: UAE2010 Yearbook - UAE National Media Council Source: http://www.uaeembassy-newdelhi.com Non-oil sector contribution to nominal GDP: vvv 63.2% (2008).

9 Doing Business with UAE

The Economy

GDP Growth As one of the leading suppliers of crude oil, the UAE had initially been insulated from the global downturn by high oil prices, which soared to a record US$147 in July 2008. However, the country was eventually affected by the deepening global downturn that led to a slump in the demand for oil, dragging prices to less than a third of the July 2008 peak. In the final months of 2008 the tremors reverberating through international economies were finally felt in the region with the widening of sovereign risk spreads, the reversal of large private capital inflows and a sharp downturn in stock market indices. Further proof of the UAE's close integration in the global economy was provided by a decline in the country's construction and property sectors, mainstays of the country's economic growth. All these factors meant that the UAE's growth in 2009 was sharply down from previous years. The Ministry of Economy in October 2009 forecasted growth of 1.3 per cent for the year. The IMF upgraded its GDP prediction in November 2009 to a contraction of about 0.2 per cent instead of the 0.6 per cent decline it had forecast in May. The IMF predicted, however, that the UAE would return to positive figures in 2010 with an expansion of 2.4 per cent. Other analysts are more optimistic: the Economist Intelligence Unit is predicting a 3.4 per cent growth rate, whilst Emirates Industrial Bank expects the economy to grow by up to 5 per cent in 2010.

10 Doing Business with UAE

The figures for 2009 were in marked contrast with those for 2008 when the growth in the UAE's GDP reached 7.4 per cent. Leading that rise was the oil and gas sector, which expanded by 35.6 per cent, mainly thanks to the increase in oil prices. Other strong growth sectors in 2008 included the construction sector (26.1 per cent), manufacturing industries (17.2 per cent), the financial sector (15.9 per cent), wholesale retail trade and repairing services (18.7 per cent), and restaurants and hotels (15.1 per cent). Trade The UAE's trade balance in 2008 increased by 35.3 per cent from Dh170.85 billion in 2007 to Dh231.09 billion. This increase was largely due to a 33.9 per cent rise in the value of exports and re-exports. The value of oil exports rose by 39.7 per cent in 2008 to Dh313.74 billion, mainly as a result of a rise in average oil prices that went up by 27.3 per cent from US$70.07 a barrel in 2007 to US$90 in 2008. Gas exports also increased by 37.1 per cent to Dh39.08 billion. The country's free zones saw a 16.4 per cent increase in exports, which reached Dh97.46 billion in 2008. Meanwhile, re-exports reached Dh345.78 billion, a rise of 33.4 per cent. Rising domestic demand due to increases in population and income levels, together with a positive growth in the re-export trade, helped to push the value of imports up by 33.4 per cent to reach Dh735.70 billion. In 2008, the UAE's debit balance of services, which includes freight, insurance, tourism, travel and government services, rose 27.6 per cent to Dh159.48 billion, compared to Dh124.96 billion the previous year.

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Inflation Inflation in the first 11 months of 2009 stood at 1.7 per cent, significantly down from previous years. Lower housing prices and food costs contributed to deflationary pressures in the economy. Housing costs make up nearly 40 per cent of the consumer price index. Consumer prices posted a slight gain in November 2009 after declines in the previous four months. The price of a basket of consumer goods and services rose 0.2 per cent in November from the same period the previous year, according to the National Bureau of Statistics. The official inflation rate is calculated by measuring the percentage change in prices in a representative basket of goods and services consumed by the average household in the UAE. Economists expect deflationary pressures to subside in 2010 as a result of continued international weakness of the US dollar, to which the dirham is pegged, and higher food prices. In 2008 inflation stood at 10.8 per cent, as substantial revenues from higher oil prices fuelled economic growth, creating shortages of property and services. At the same time, the weaker dollar and higher global food prices made imports more expensive. As the impact of the global financial crisis began to ease, consumer confidence improved. A poll conducted by research company Nielsen indicated that consumer sentiment during September and October 2009 rose a record 13 points from six months previously, reaching 102. The UAE was the eighth most optimistic country out of the 54 in the global survey.

12 Doing Business with UAE

To guard against future price rises and commodity shortages, the Government is pushing ahead with plans to build up a strategic food reserve of essential items. In an effort to ward off inflation in the short-term, annual rental increases have remained capped at 5 per cent in both Dubai and Abu Dhabi, while controls on the prices of basic commodities have been maintained. The UAE Central Bank, which has so far resisted gearing its monetary policy towards raising interest rates, has indicated that its policy would aim to keep official interest rates at low levels in order to revive economic growth. Meanwhile, persistent dollar weakness led the US Federal Reserve to signal it will not raise interest rates for the 'foreseeable future'.

13 Doing Business with UAE

GCC Monetary Union In May 2009, the UAE decided not to take part in the planned monetary union amongst members of the Gulf Co-operation Council (GCC). Oman had withdrawn two years previously. Explaining its decision, the Government said it had fundamental reservations about the currency plans and the role of the monetary council. It also objected to the decision to base the location of the regional Central Bank for the new currency in Saudi Arabia, rather than in Abu Dhabi. Industry and Diversification Diversification remains the watchword for future growth of the UAE's economy as it seeks to reduce its reliance on oil. The non-hydrocarbon sectors accounted for 63 per cent of GDP in 2008, despite high oil and gas prices, contributing US$590 billion to the economy. The UAE is hoping to further reduce the contribution of the hydrocarbons sector to approximately 20 per cent in the next ten to 15 years, through promoting growth elsewhere in the economy. In 2009, Abu Dhabi unveiled its 2030 Economic Vision, setting out a roadmap for achieving greater economic diversification. The plan aims to reduce Abu Dhabi's reliance on the oil sector as a source of economic activity and, instead, instill a greater focus on knowledge-based industries. Manufacturing and industry continues to be an important component of the country's ambitions for economic transformation, building on already thriving sectors such as aluminium smelting, ceramics and pharmaceuticals. A major step towards reaching this goal was achieved in 2009 with the announcement of plans by Abu Dhabi's Advanced Technology Investment Company (ATIC) to purchase Chartered Semiconductor Manufacturing and thus create the second-largest chip- maker in the world. When the Dh6.56 billion acquisition is completed, Chartered

14 Doing Business with UAE

Semiconductor will be merged with Globalfoundries, the chip manufacturer that ATIC runs in a joint venture with the US chip company AMD. The emirate has also set its sights on establishing itself as a leading centre for aerospace manufacturing. Mubadala Development Company, the strategic investment arm of the Abu Dhabi government, plans to begin operations at an aerostructure manufacturing plant it is building by the end of 2010. Mubadala is also progressing with an US$8 billion joint venture with GE, the American conglomerate, that will provide commercial finance in the region. Ra's al-Khaimah Investment Authority (RAKIA) announced in December 2009 that it is planning to launch a concept of themed industry zones to create clusters of manufacturing facilities in Ra's al-Khaimah. The proposed clusters will cover sectors including food, chemicals, plastic and rubber, minerals, metals, electrical equipment, transportation and logistics. Fujairah unveiled proposals for a virtual free zone in the emirate, the first in the UAE, which will let internationally owned companies do business for less than that charged by established free zones. Part of the Fujairah Creative City free zone, Virtuzone allows international entrepreneurs registered with the zone to operate their businesses from a home or office anywhere in the UAE. Blessed with 95 per cent of the country's oil reserves and 92 per cent of its gas reserves, Abu Dhabi is making a concerted effort to use its hydrocarbon revenues to harvest more of its energy from renewable sources (see chapter on Renewable Energy). To this end, the emirate's government has set a target of supplying 7 per cent of Abu Dhabi's power needs from renewable energy sources by 2020. Government- owned future energy company Masdar will be a key contributor toward meeting this target, both in terms of the company's investments and in the development of low carbon energy supplies.

15 Doing Business with UAE

The first phase of Masdar's Dh55 billion carbon-neutral city in the emirate is due for completion in early 2010. It will eventually house 40,000 residents and 50,000 daily commuters working at some 1500 green energy firms. Masdar is also investing heavily in the fast-growing technology of thin-film solar energy panels involving the building of a plant in Abu Dhabi capable of manufacturing enough panels each year to produce 130mw. Notwithstanding the impact of the global financial crisis, the financial sector continues to play an important part in the UAE's economy, especially in Dubai. The Dubai International Financial Centre and the country's stock exchanges in Abu Dhabi and Dubai are continuing to provide springboards for future growth in the sub-sector (see chapter on Financial Services). In addition, the UAE Government is in the final stages of preparing an industrial law, which is also expected to encourage the creation of national industries.

Real Estate Economic activity in the construction and property sectors remains a significant driver of growth, despite a slowdown in the development of some projects from the later stages of 2008 into 2009 because of the impact of the global downturn. A number of major projects were completed in 2009, one of the most impressive being Yas Island, a leisure resort in Abu Dhabi and home to the Yas Marina circuit, which hosted the Formula One Grand Prix in November 2009. Major infrastructure schemes were completed, including the Dh28 billion Dubai Metro, the driverless transport system spanning the heart of the emirate; Sheikh Khalifa Bridge, linking Abu Dhabi Island with Saadiyat and Yas islands; and the Palm Jumeirah Monorail. The tallest building in the world, Burj Khalifa, in Dubai, was inaugurated in the first week of 2010. However, the global economic crisis did leave its mark on the country's property market, with prices falling sharply, by as much as 50 per cent in some Dubai projects, and with some projects being placed on hold or cancelled, leading to job cuts in the construction sector. But as the downturn set in, the Government was quick to react. Plans were unveiled for reforms to the sector, with the development and

16 Doing Business with UAE enforcement of more protective regulations and strong action against wayward developers. A number of court cases against officials of major Dubai developers were under way at the end of the year as the Government sought to crack down on corruption and to increase transparency. The Dubai government-backed property firms were among the first to benefit from a US$20 billion borrowing programme funded by the UAE Central Bank and the Government of Abu Dhabi. With supply continuing to outstrip demand, however, some analysts have predicted that full recovery in the property sector will not take place until 2012, at the earliest. Tourism Tourism is an important growth sector in the whole of the UAE economy. Abu Dhabi has recently re-branded itself and prime quality hotels and leisure resorts are increasingly important throughout the country; from the island resort of Sir Bani Yas in western Abu Dhabi, to the desert resorts of Qasr Al Sarab in the Liwa, and Al Maha and Bab al-Shams, in Dubai. There are also a host of coastal resorts throughout the UAE, including the east coast, as well as flagship projects such as Emirates Palace Hotel, Burj al-Arab, Madinat Jumeirah, and the Burj Khalifa, with the result that the UAE has much to offer the most demanding visitors. The country is expected to attract 11.2 million tourists in 2010, underpinning the success of its attempts to boost investment in the hospitality industry. In 2009, the UAE climbed 14 places in the 'Doing Business' report compiled by the World Bank and its International Finance Corporation. The UAE's rose to thirty-third position in the global rankings for regulatory reform, partly as a result of the Government's decision to abolish a Dh150,000 minimum capital requirement for some start-ups. Two other key reasons for the country's rise was a streamlining of the process involved in obtaining construction permits and the improving of capacity at Dubai ports. The internationally recognised report assesses countries on how easy it is for small and medium-sized enterprises to conduct business.

17 Doing Business with UAE Inward Investment Between 2003 and 2008 the UAE was the third largest recipient of foreign direct investment (FDI) in West Asia, behind Saudi Arabia and Turkey, according to the UN Conference on Trade and Development

(UNCTAD). The country attracted an inflow of around Dh51.4 billion in 2008, UNCTAD said in a study on West Asian FDI published in its annual report for 2009. But it warned that a lack of activity in global credit markets was likely to lead to a decline in FDI in 2009. The Government has been active in its efforts to improve conditions to meet with the aspirations of international investors. A planned new companies law is expected to lead to a relaxation of foreign ownership rules. Once implemented in 2010, the law will enable international firms in certain sectors, such as industry, to be allowed to own a greater stake in businesses they establish in the Emirates. The law now requires foreigners to have an Emirati as a sponsor and limits them to a maximum 49 per cent ownership of businesses. The exceptions are free zones, where foreign companies can have 100 per cent ownership. Outward Investment Investment in overseas markets has long been integral to the UAE's strategic drive to create a security net for future generations who will one day face the prospect of a depletion of the country's hydrocarbon reserves. Among the major international

18 Doing Business with UAE investment bodies in the Emirates are: Abu Dhabi Investment Authority (ADIA) ADIA's mission is to secure and maintain the current and future prosperity of the emirate through management of its investment assets. ADIA is a leading international investor and for the past 33 years has established itself as a responsible and trustworthy investor and a strong supplier of capital. ADIA oversees a substantial global diversified portfolio of assets across varying sectors, regions and asset classes, including public listed equities, fixed income, private equity and property. It does not seek active management of the companies it invests in, only long-term sustainable financial returns. Abu Dhabi Investment Council (ADIC) Responsible for investing part of Abu Dhabi's surplus financial resources, ADIC employs a globally diversified investment strategy focused on gaining positive capital returns across a range of asset classes. Invest AD A subsidiary of Abu Dhabi Investment Council, Invest AD, a government investment vehicle similar to ADIA, was established in1977 as Abu Dhabi Investment Company. In 2007, its mandate and its name changed when the Council decided to allow outside investors to put their money in alongside it, making it perhaps the only sovereign fund in the world to welcome external funds. Invest AD's business now includes a proprietary investment arm that continues to invest on behalf of the government and a third-party investment division for attracting capital from external investors. The Investment Corporation of Dubai (ICD) Investing to create stability and foster diversification, the ICD owns 60 per cent of Borse Dubai, a holding company that in turn acts as a holding company for Dubai Financial Market and NASDAQ Dubai. Dubai Holding One of Dubai's major holding companies, Dubai Holding is divided

19 Doing Business with UAE between the Dubai Holding Commercial Operations Group (DHCOG) and the Dubai Holding Investment Group (DHIG), formed in 2009 when Dubai Group and Dubai International Capital (DIC) were combined. In August, Dubai Holding said it was reorganising its companies into property, business park, hospitality and investment units. Dubai Holding Commercial Operations Group (DHCOG) Property developers Dubai Properties Group, Sama Dubai and Tatweer fall under DHCOG. In addition, DHCOG holds the hotel operator Jumeirah Group and the business park operator TECOM Investments. Dubai Holding Investment Group (DHIG) DHIG was formed as a result of combining the previously separate entities of Dubai Group and Dubai International Capital (DIC). DHIG also now controls six financial companies that are under the responsibility of Dubai Group including Dubai Capital Group, Dubai Financial Group, Dubai Investment Group, Dubai Banking Group, Dubai Insurance Group and Noor Investment Group. Focused on the private equity asset class, DIC operates through global buy-outs specialising in secondary LBOs in Europe, North America and Asia. It also focuses on MENA investments including LBOs, funds and co-investments, infrastructure, growth and development capital. Another part of its work involves taking equity investments in equity quoted companies. DIC owns stakes in the Travelodge hotel chain, the Middle-Eastern operations of the property consultancy CB Richard Ellis, and the UK engineering company Doncasters. In October 2009 DIC borrowed Dh2.02 billion from international banks as part of a two-year loan. Dubai World Dubai World has for many years been at the forefront of Dubai's rapid growth. As a holding company, it operates in a diversified spectrum of industrial segments. Its investments fall into four main sectors: transport and logistics, drydocks and maritime, urban development, and investment and financial services. Its portfolio includes some of the world's best known companies: DP World, one of the largest maritime terminal operators in the world; Drydocks World and Dubai Maritime City; Economic Zones World, which operates several free zones around the world;

20 Doing Business with UAE

Nakheel, the property developer behind The Palm Islands and The World; Limitless, the international real estate master planner; Leisurecorp, a sports and investment group; Dubai World Africa; and Istithmar World. Dubai World's request in November 2009 to reschedule its debts and restructure the company did not include Infinity World, Istithmar World, and Dubai Ports World and Free Zones World (see chapter on Financial Services for more information). Mergers and Acquisitions Merger and acquisitions totaling more than US$20 billion (Dh73.44 bn) took place in the UAE in 2009. Of these, US$15.74 billion, or more than 77 per cent, were acquisitions made by UAE-based firms, while the remainder comprised foreign companies acquiring UAE firms. Abu Dhabi-based International Petroleum Investment Company (IPIC) were top of the list with US$6.4 billion worth of acquisitions, followed by Aabar Investments, which made US$2.93 billion worth of acquisitions. Aabar is also considering the purchase of a 70 per cent stake in the Dubai-based Arabtec Holding Company. IPIC's 32.5 per cent acquisition in April of Spain's Compania Espanola de Petroleos from Banco Santander for more than US$3.8 billion was the largest merger and acquisition deal involving a UAE firm in 2009, followed by IPIC's sale of its 70 per cent stake in Hyundai Oilbank Company to South Korean Hyundai Heavy Industries in November for just under US$3.8 billion. Atic's US$2.9 billion takeover of Singapore's Chartered Semi-conductor Manufacturing from Temasek Holdings in September; Aabar's US$2.65 billion acquisition of a 9.10 per cent in Germany's Daimler in March; and IPIC's US$2 billion acquisition of Canadian Nova Chemicals Corporation in February were the top five

Source: www.uaeinteract.com vvv

21 Doing Business with UAE

Financial Services

deals in the past year involving UAE companies. listed on the Dubai Financial Market ended the year up 10.2 per cent, but were still more than 70 per cent down from the previous year's highs. Stocks on the Abu Dhabi Securities Exchange rose by 14.7 per cent in 2009, but were still down 46 per cent from 2008 highs. Further Support As already mentioned in the chapter on The Economy, global markets were impacted when Dubai World stated in late November that it was seeking a standstill agreement with creditors on US$26 billion in debt. However, in a move aimed at rebuilding confidence, on 14 December 2009, Dubai unveiled a US$5 billion (Dh18.35 bn) rescue package from the Abu Dhabi government to enable the company to meet a portion of its financial obligations, including the US$3.5 billion Islamic bond payable by Nakheel on that day. The remainder of the package, to be transferred to the Dubai Financial Support Fund, is being used to make interest payments on outstanding loans and bonds, to fund daily operations and to meet trade finance agreements and repay contractors. On the same day, H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai, issued a decree establishing a tribunal of judges to supervise financial claims connected with the debt restructuring of Dubai World. Under the ruling, creditors of Dubai World will be required to make their case in front of a special court at Dubai International Financial Centre (DIFC), controlled by regulations which have been adapted to reflect insolvency laws in the US and UK.

22 Doing Business with UAE

Meanwhile, Dubai World began meetings with creditors to restructure US$22 billion of debt including discussions on asset sales and funding requirements. In a move that helped further allay investors' anxiety, the UAE Central Bank stepped in to provide support for those lenders exposed to the restructuring. It stated that it stood behind both local and foreign banks in the UAE, establishing an emergency liquidity facility for banks owed money. The problems at Dubai World capped an eventful year in finance for the UAE, one that saw financial firms struggling to return to profitability in the wake of the financial crisis and one that saw considerable boardroom restructuring and new senior

Source: www.uaeinteract.com vvv

23 Doing Business with UAE

Oil & Gas management appointments. In 2009, due to exemplary compliance with the record production cuts pledged by the Organisation of the Petroleum Exporting Countries (OPEC) to stabilise oil markets, the UAE's oil output fell to about 2.3 million barrels per day (bpd) from 2.9 million bpd in 2008. Its gas production stood at roughly 7 billion standard cubic feet per day (scfd). Effects of Global Economic Crisis Global oil consumption contracted in both 2008 and 2009, during the worst global recession in decades. As the economic crisis recedes, energy forecasters predict that oil demand will gradually recover, albeit more slowly than previously expected. The International Energy Agency forecasts global oil demand of 105 million bpd in 2030, up 24 per cent from 85 million bpd in 2008. Most energy economists see OPEC's contribution to world oil supply expanding as production declines from mature producing areas such as the North Sea. That bodes well for the plans of Abu Dhabi, which accounts for roughly 95 per cent of the UAE's oil and gas output, to boost production 24 Doing Business with UAE capacity by roughly 30 per cent to 3.5 million bpd by 2019. It means the new capacity should be needed and will not sit idle. The prospect of maintaining costly spare capacity was not something that troubled most oil exporters before 2009. Crude spiked to a record US$147 per barrel in July of 2008 partly because consumers worried that new oil supplies could not be developed fast enough to keep pace with rapidly rising demand. During 2009, however, OPEC spare capacity quadrupled to about 6 million bpd as oil demand slumped. Unusually, about a third of that idle capacity lay outside Saudi Arabia, the traditional OPEC swing producer. The UAE idled approximately 20 per cent of its oil production capacity in 2009 in response to the deep cuts into OPEC production quotas. That focused the nation's attention on securing markets for its oil exports through diplomatic efforts to deepen political and trade ties with Asian oil consuming states, and investment in Asian

25 Doing Business with UAE

petroleum refining and storage projects. The initiatives were undertaken amid signs that oil demand in the developed world was threatened by economic stagnation, while new international agreements to curb carbon emissions seemed likely to limit growth in global oil demand. Facing an array of new challenges, the UAE has, therefore, adapted its oil policies to strike a balance between its national and international responsibilities. At home, it must focus on developing its hydrocarbon resources prudently, with the long-term aim of optimising revenue to fund economic diversification. At the same time, as a member of OPEC, the UAE has a responsibility to the world at large to contribute to secure and reliable oil supplies that meet global demand. Additionally, the nation recognises that it must play a part in mitigating climate change by taking action to curb carbon emissions. In the short-term, the UAE also faces a domestic gas crisis that impacts on the reliability of its electricity supply. This has been exacerbated by compliance with OPEC oil cuts, as much gas is produced from the nation's oil fields. Lower crude output means lower produced volumes of associated gas. Compounding the problem, Abu Dhabi, which was the first Gulf state to produce liquefied natural gas (LNG), has long-term contractual commitments to export gas. In the longer term, the UAE is pursuing plans to diversify its domestic energy supply to include nuclear and solar power, which should lessen the pressure on its gas supplies. Further gas development, however, will be essential if population growth and industrial expansion continue as forecast. UAE Response to Changing Situation The nation's response to the rapidly changing energy milieu and its increasingly complex interface with environmental issues has been measured but multifaceted. First, the UAE is pressing ahead with plans to expand oil and gas production capacity, but has extended the time frame for oil development while giving higher priority to gas projects. Second, government and industry have joined forces in initiatives to develop new oil markets. Third, several emirates have launched programmes to bolster energy efficiency and encourage energy conservation, reflecting the growing public awareness of the need to reduce carbon emissions. Some of these directly involve the oil and gas sector. Fourth, the nation is moving ahead with low carbon and clean energy

26 Doing Business with UAE developments, with close cooperation from oil and gas producers. Fifth, it is fostering international energy partnerships and participating in more overseas energy projects. Developing Gas Reserves The UAE's proven oil reserves stood at 97.8 billion barrels at the end of 2008, and its proven gas reserves at 227.1 trillion cubic feet. That is enough oil to last for more than a century and sufficient gas for more than 130 year of supply at recent production rates. Among other things, that means the Emirates' gas shortage is not due to a lack of gas reserves, but to insufficient development, although many of the gas reserves are of a type that is costly and difficult to produce. A landmark event in 2009 was, therefore, the launch of a joint venture between the Abu Dhabi National Oil Company (ADNOC) and the US oil company ConocoPhillips to develop the Shah gas field in the south-west of Abu Dhabi at an estimated cost of US$10 billion (Dh37 bn). The project will not only provide about 500 million scfd of gas, but will also advance the emirate's capability to exploit challenging gas deposits. The Shah reservoir contains so-called ultra-sour gas, consisting of about 30 per cent hydrogen sulphide. The deadly gas could endanger humans and livestock if allowed to leak into the atmosphere and could damage the environment. Gas fields with similar hydrogen sulphide concentrations have been developed elsewhere in the world, but not often. ConocoPhillips, however, is a world leader in the safe exploitation of such reservoirs and will help ADNOC develop similar expertise. As a spin-off from the Shah project, Abu Dhabi will become the leading regional exporter of sulphur, which is used to make fertilisers, rubber and sulphuric acid. The emirate is considering whether to develop the world's longest liquid sulphur pipeline or a railway to transport sulphur from the Shah field. Abu Dhabi Abu Dhabi is pivotal in boosting the UAE's overall oil and gas production capacity, as it contains about 94 per cent of the nation's oil reserves and more than 90 per cent of its gas reserves. Major projects require planning consent and budgetary approval from the emirate's Supreme Petroleum Council (SPC). The body is chaired by H.H. Sheikh

27 Doing Business with UAE

Khalifa bin Zayed Al Nahyan, President of the UAE, indicating the central importance of the emirate's oil and gas sector to the entire UAE economy. The SPC directs energy policy for Abu Dhabi and functions as a board of directors for ADNOC, which is charged with proposing oil and gas projects to the Council and implementing its directives. ADNOC's operating units, which are structured as joint ventures with foreign oil companies, are proceeding with a full slate of major oil and gas developments in addition to the Shah gas project, discussed above. They include four more projects to expand gas production and six aimed at oil development. The first of these is a Dh40 billion (US$10.9 bn) effort to integrate gas production from two of Abu Dhabi's main offshore and onshore oil fields, unlocking an additional 1 billion scfd of gas supply. Abu Dhabi Gas Industries (GASCO), one of the ADNOC subsidiaries responsible for handling the emirate's gas, awarded the four main engineering, procurement and construction contracts for the project in November of 2009. Two more projects are planned to exploit sour gas fields, one onshore and one offshore. The remaining gas project involves a new partnership between ADNOC and the Anglo- Dutch group Royal Dutch Shell to search for gas deposits deep below the sea floor. In oil development, the Abu Dhabi Company for Onshore Oil Operations (ADCO) awarded US$3.5 billion (Dh12.9 bn) of contracts in 2009 for an integrated project to increase crude output from Abu Dhabi's Sahil, Asab and Shah oil fields by a combined 60,000 bpd to 455,000 bpd by 2016. It also awarded an US$805 million (Dh3 bn) contract to raise production from the Bab oil field, which was the first onshore oil deposit developed in the emirate. In total, ADCO plans to increase oil production capacity by 400,000 bpd to 1.8 million bpd by 2017. Offshore, the Abu Dhabi Marine Operations Company (ADMA-OPCO) is moving ahead with a ten-year plan to increase output from two major Gulf oil fields, Umm Shaif and Lower Zakum, to 1 million bpd by 2019 from about 600,000 bpd in 2009. The unit also plans to develop three smaller fields that are expected to yield another 76,000 bpd of crude oil. This is the first step in a plan to tap several small fields that were passed over when Abu Dhabi's main oil fields were developed. The Zakum Development Company (ZADCO), another ADNOC offshore oil subsidiary, is proceeding with a project to increase output from the Upper Zakum field by about 50

28 Doing Business with UAE

per cent to 750,000 bpd following the 2009 completion of a reservoir study. In November of that year, it awarded a contract for dredging work required to build four artificial islands to support drilling rigs for the project. ADNOC's partner in the development is the US oil major ExxonMobil. Finally, ADNOC has awarded a new oil concession to the US oil company Occidental Petroleum to develop two small fields close to the UAE capital. Starting in 2010, Occidental plans to invest US$500 million to produce 20,000 bpd from the fields. The crude will be sent to Abu Dhabi's Umm an-Nar refinery, the smaller of the emirate's two petroleum refineries, to meet growing domestic needs for petrol and other oil products. ADNOC's oil refining company, Takreer, also made steady progress in 2009 with long- standing plans to expand Abu Dhabi's petroleum processing capacity to 885,000 bpd from 485,000 bpd by building a new refinery and integrating operations at its existing facilities. In November 2009, it awarded the first contracts for the US$10 billion (Dh37 bn) Ruwais refinery project, which will serve as the foundation for the emirate's diversification into petrochemicals. The two contracts to build key equipment for the 417,000 bpd refinery, which is expected to start production in 2013, were worth a total of US$5.2 billion (Dh19.1 bn). The decision to proceed with the project during a sustained downturn in refining margins is part of a strategic move to capture a greater share of the global market for refined oil products when the economy recovers. Related to this venture, ADNOC's fertiliser arm, Fertil, has announced plans to spend US$1.2 billion to build a new plant at Ruwais, located about 200 kilometres west of the UAE capital on Abu Dhabi's coast. In July 2009, the Vienna-based plastics maker Borouge, jointly owned by ADNOC and the Austrian oil company OMV, awarded a US$1 billion contract under a programme to expand facilities at Ruwais. Dubai Dubai's oil production, which once accounted for about half the emirate's GDP, has fallen dramatically from its 1991 peak of 410,000 bpd. By 2007 it had dropped to 80,000 bpd. As a result, the second largest UAE emirate has swung from being a net oil exporter to importing most of its petroleum requirements. While it continues to pump gas from offshore fields, Dubai also consumes more fuel than it produces, and is increasingly dependent on imports to make up the difference. The emirate already purchases several hundred million cubic feet per day of gas from

29 Doing Business with UAE

Dolphin Energy, an Abu Dhabi company that imports gas by pipeline from Qatar. In 2011, after completing the construction of a receiving terminal, Dubai will start importing 650,000 tonnes per year of LNG under a contract with Qatar Petroleum and Shell. Dubai remains deeply involved in the petroleum sector, however, as a hub for oil trading and energy services. The port of Jebel Ali, located about 35 kilometres south- west of the city of Dubai, handles a large part of the UAE's trade in refined petroleum products and can accommodate tankers of up to 80,000 tonnes capacity. In 2008, the Dubai Multi Commodities Centre (DMCC) signed a framework agreement with investors for a US$200 million project to build an oil storage terminal at Jebel Ali, with the aim of enhancing Dubai's role as a regional oil products trading hub and of supporting the emirate's burgeoning civil aviation sector. A condensates refinery at Jebel Ali, processing liquids from gas production, is being expanded to 120,000 bpd of capacity from 48,000 bpd. The refinery is one of two operated by the Dubai Government-owned Emirates National Oil Company (ENOC). Both process feedstock imported from Qatar, Abu Dhabi and Iran. The Dubai Mercantile Exchange (DME), launched in 2006, was the first commodities exchange to offer a futures contract for a benchmark Middle Eastern crude. As of November 2009, trading in the exchange's DME Oman Crude Oil Futures Contract had increased by 58 per cent for the year, strengthening its prospects for becoming a leading benchmark in global oil trade. Trading volumes benefited from the contract's listing in February of that year on the CME commodities exchange in the US. Both the DME and the DMCC also offer futures trading in fuel oil. A number of international oil companies maintain regional offices in Dubai, as do major companies providing services to the energy sector. In 2007, the US oil field services company Halliburton established its regional headquarters in Dubai. The following year, Mubadala Development, the Abu Dhabi government-owned industrial conglomerate, and the British-UAE energy services firm Petrofac set up a joint venture headquartered in Dubai. Recognising the emirate's challenges as it seeks to meet rising energy demand with diminished resources, H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President of the UAE and Ruler of Dubai, in June of 2009 created two new bodies to oversee long-term energy policy: an Energy Higher Council to address demand issues and a Department of Petroleum Affairs to look at supply.

30 Doing Business with UAE

The Northern Emirates Four of the UAE's other five emirates also have minor amounts of oil and gas production. Crescent Petroleum, a private-sector Sharjah company, produces oil from the Mubarak field in the Gulf, near Abu Musa Island, but the field has been in decline for some time. Crescent and Dana Gas, a Sharjah affiliate, are also developing an offshore gas field located in territorial waters shared by Sharjah and Ajman. Production is expected to start in 2010. Dana and Emarat, a Dubai marketer of petroleum products, have jointly developed a common-user gas pipeline to serve Sharjah customers. Gas production from the Atlantis field offshore Umm al-Qaiwain began in 2008. A unit of China's Sinochem is developing the deposit and sending as much as 92 million scfd of liquids-rich gas through an under- sea pipeline to a Ra's al-Khaimah processing plant operated by the Government-owned Ra's al- Khaimah Gas Commission, or RAK Gas. RAK Petroleum, a private-sector Ra's al-Khaimah company, holds interests in oil and gas concessions in Sharjah, the Sultanate of Oman and its home emirate. In 2009 the company and its partners produced about 10 million scfd of gas and associated liquids from the Bukha field, located in Omani territorial waters off the Musandam peninsula. The development of the nearby West Bukha field, which produces about 8000 bpd of oil and 20 million scfd of associated gas, was also completed that year by a group including RAK Petroleum. Fujairah does not produce oil or gas, although an onshore exploration programme is currently under way. However, the world's second largest bunkering port is located on its coast. The port of Fujairah, on the Arabian Sea, handles about 1 million tonnes per month of marine transportation fuel and other oil products. The arrival in 2008 of gas imports through the Dolphin Energy pipeline from Qatar has facilitated power and water development in the emirate and stimulated local industry. The International Petroleum Investment Company (IPIC), owned by the Abu Dhabi Government, is building a strategic crude oil pipeline to deliver up to 150,000 bpd of oil from Abu Dhabi's Habshan onshore fields to a new export terminal in Fujairah. The project aims to supply an export route for Abu Dhabi crude that bypasses the Gulf's maritime choke point at the Strait of Hormuz. It is slated for completion in 2010, with the first tanker shipment from Fujairah expected in early 2011. IPIC is also in the early stages of developing an oil refinery and storage facilities at the Fujairah port.

31 Doing Business with UAE

International Developments As the UAE's oil and gas sector has developed sophistication, it has spawned a number of public and private sector companies that pursue energy development abroad. In Abu Dhabi, three Government-controlled entities, Mubadala Development, the Abu Dhabi National Energy Company, or Taqa, and IPIC, are the main vehicles for such enterprise. In 2009, Mubadala's oil and gas output stood at roughly 350,000 barrels of oil equivalent per day (boepd), while Taqa produced about 112,000 boepd. IPIC's investments have been mainly in petroleum refining and petrochemicals. Mubadala produces oil in Oman and oil and gas in several south-east Asian countries. As the controlling shareholder of Dolphin Energy, a joint venture with Occidental Petroleum and the French energy group Total, Mubadala also produces gas and condensates in Qatar. Since 2008, Dolphin has been sending up to 2 billion cubic feet per day of gas through an undersea pipeline to Taweelah in Abu Dhabi for distribution through an overland pipeline system to customers in the UAE and Oman. Mubadala is in another joint venture with ConocoPhillips to explore for oil and gas in the Caspian Sea off the coast of Kazakhstan. In November 2009, Mubadala and Occidental Petroleum finalised an agreement with the National Oil and Gas Authority of Bahrain to raise output from the Kingdom of Bahrain's only onshore oil field. Taqa produces most of its oil from the UK North Sea, while its gas production is concentrated in Western Canada and the Dutch North Sea. It also owns interests in pipelines, production platforms and gas storage facilities in those areas, and is leading a project in the Netherlands to develop a major gas storage and marketing hub for western Europe. In addition, Taqa has a substantial international and domestic portfolio of power generation assets. IPIC has acquired, in a wide portfolio, oil and petrochemicals interests in North America, Europe and Asia. It is a major shareholder and strategic partner of Austria's OMV, and holds an indirect interest in a large LNG development in Papua New Guinea. The Dubai Government's ENOC also invests overseas, mainly through its 52 per cent interest in Dragon Oil, which produces oil and gas in Turkmenistan. Al Thani Corporation, a private-sector Dubai company, is exploring for oil and gas in several African countries including Sudan, Egypt and Libya. The Sharjah affiliates Crescent Petroleum and Dana Gas have a gas joint venture in Iraqi Kurdistan. Dana also produces oil and gas in Egypt. RAK Petroleum is involved in oil and

32 Doing Business with UAE gas exploration and production in Oman, and has acquired a minor interest in Heritage Oil, a Canadian company with a big oil discovery in Kurdistan. Future Development Environmental mitigation, especially as international concern mounts over global warming, presents a substantial challenge to the global oil and gas industry, which is under pressure to find ways to cut its carbon emissions. The UAE's oil and gas sector has accepted the challenge, and is already making progress with a number of initiatives. As an example, ADNOC is well on the way to eliminating gas flaring. By reducing the wasteful burning of gas at production facilities and oil refineries through better management, the company is not only cutting carbon dioxide emissions, but is also conserving a valuable energy resource. ADNOC is also a partner in an ambitious scheme to develop a carbon capture and storage network for the UAE. The plan is to capture carbon dioxide emissions from major Abu Dhabi industrial installations and pipe the gas to oil fields for use in enhanced oil recovery projects. Eventually, the carbon dioxide would be permanently stored underground in the depleted reservoirs. Within the next few years, Abu Dhabi will also face decisions related to the expiry in 2014 and 2018 of long-term concessions covering production from most of its biggest oil fields. While details of the negotiations have not been made public, senior government and ADNOC officials have indicated that they value Abu Dhabi's partnerships with international energy firms and wish to continue such alliances.

Source: www.uaeinteract.com vvv

33 Doing Business with UAE Infrastructure

Plan Abu Dhabi 2030 In 2009, Abu Dhabi made key strides towards the implementation of its Plan Abu Dhabi 2030, a roadmap that seeks to cope with an estimated tripling of the population of the capital in the next two decades as new industries, cultural attractions, hotels, schools and hospitals are built. The plan seeks to find a balance between managing growth, fostering tourism and trade, while preserving the city's cultural heritage and natural environment. The city planning envisions two new focal points for the capital: one is on Sowwah and Reem, two small islands lying to the east off the main Abu Dhabi Island. These will be developed into downtown financial and business districts interconnected by more than a dozen bridges. Major works are being completed for the first phase on Sowwah, including Sowwah Square, the future home of the Abu Dhabi Securities Exchange. Sowwah will provide the first example in the capital of a two-level podium system, requiring automobiles to use underground roads and allowing pedestrians more freedom at ground level. On the mainland adjacent to Abu Dhabi Island, the Capital District will become the second focal point and the new seat of Government. Public agencies and foreign embassies will be located close to housing for 370,000 residents under the 2030 Plan, whilst a circular central area will hold the highest building heights and population densities. Work on a number of key projects has already commenced. Piling has begun on a 65,000-seat stadium that will be used for sporting events, concerts and exhibitions. Site preparations have also begun for Zayed University's new campus. These efforts are being overseen by the Urban Planning Council (UPC), which is working to ensure the area has the necessary infrastructure in place, such as utilities and power.

34 Doing Business with UAE

There are big changes afoot also on Saadiyat Island, the proposed site for numerous hotels, leisure facilities, golf clubs and, residential centres as well as a Cultural District that will include museums like the Jean Novel-designed Louvre Abu Dhabi, Foster + Partner's Sheikh Zayed National Museum, and the Frank Gehry-envisioned Guggenheim. An area of pristine mangroves is being protected amidst the development, along with an important archaeological site on much of the island. On Yas Island, a sustained three-year construction effort resulted in a successful inaugural Formula One Grand Prix on the Yas Marina Circuit in November 2009. Just a month before the Grand Prix, the two islands were linked by a new 27- kilometre, ten-lane highway that originates at the E10 motorway, in the Shahama district, and crosses Yas, Jubayl and Saadiyat, before transversing the newly built 1.4- kilometre-long Sheikh Khalifa Bridge to reach Abu Dhabi Island at Mina Zayed Port. The new highway also reduces travel time between Abu Dhabi and Dubai. Transport Master Plan The dominance of the car as a means of transport will be challenged as Abu Dhabi builds one of the most comprehensive public transit systems in the world, valued at more than Dh300 billion, over the next 20 years. The Abu Dhabi Department of Transport recently launched its Surface Transport Master Plan, which lays out guidelines to achieve the transport goals of the 2030 Plan. The Department wants to boost the use of public transport participation to 35 to 40 per cent of all daily trips by 2030. An integrated system of buses, trams, metro and regional rail will connect with personal rapid transit, a new system that involves battery-powered podcars. In total, there are nearly 20 major transportation projects earmarked for completion before 2015, at a cost of Dh50 billion. Other plans include a new mixed-use motorway to the Dubai border; a 20-kilometre Mid-Island Parkway, which will connect Reem Island with Abu Dhabi Island and the planned Capital District; several more bridges and tunnels; and the department intends to construct a 140-kilometre motorway from Al Ain to the new Khalifa Port and industrial zone at Taweelah, north- east of Abu Dhabi City.

35 Doing Business with UAE

In 2010, the Department of Transport plans to break ground on a Dh10 billion project to widen the expressway linking the capital with the Saudi border, the Mafraq-Ghuweifat Highway. The deal is being structured as an innovative public- p r i v a t e p a r t n e r s h i p f i n a n c i n g arrangement where contractors shoulder part of the risk by paying the upfront costs, and recouping their expenses over the 25-year lifespan of the highway. Transport planners are also busily evaluating engineering bids for a tram and metro network, as deadlines near: the first section of the 340-kilometre tram network is scheduled to open in 2014, while phase one of the 130-kilometre metro network is scheduled for a 2016 launch. Both projects could see construction begin around 2011, and, with many urban streets being affected, the UPC plans to take the opportunity to revamp them using new street design standards. A new street design manual was completed in 2009 and with it Abu Dhabi joins an elite club of cities that issued their own design manuals recently, including New York and London. The report is primarily geared to assist property developers to plan residential and commercial projects. A new focus on pedestrian well-being could see the provision of enlarged corner pavements. Planners are also considering eliminating dedicated right-turn lanes, which have given drivers the ability to by- pass traffic lights without stopping for pedestrians. Abu Dhabi's 'super-blocks', consisting of lengthy stretches between traffic signals and multi-lane roads, will also see significant changes. These roads will be broken up by adding extra signals and zebra crossings. In addition, these many straight and wide thoroughfares will be narrowed, which should encourage drivers to slow down and drive more safely, while major transport arteries will be provided with additional safety measures. Such moves represent significant changes to Abu Dhabi's road system for the first times in decades. Simultaneously, the Department of Transport has launched a programme to improve congestion downtown with a parking management scheme that includes metered parking spaces in central areas. This will be gradually expanded to cover all major commercial and high-density residential districts. Freight Network Other changes are focusing on the areas outside of Abu Dhabi Island. The capital's

36 Doing Business with UAE

existing port, Mina Zayed, is to be closed down and redeveloped into prime waterfront property, while a much larger port and industrial zone, Khalifa Port and Industrial Zone, is being built on a reclaimed island 5 kilometres offshore near Taweelah. In 2009 the Abu Dhabi Ports Company awarded Dh10 billion in contracts in anticipation of a 2012 opening. To support Abu Dhabi's growing industrial base as well as the need for better transport links between all seven emirates, a 1200-kilometre freight rail network will also be built by the newly established Union Railway Company and span the entire length of the emirates. The rail line will eventually link up with the planned GCC railway network and carry both freight and passengers – with speeds of 120 kph for freight and up to 200 kph for passenger services. Benefits of the rail line will include reducing the need for heavy vehicles on the roads and adding vital logistics links to new aluminium, plastics and chemical plants that are being developed in the Al Gharbia (Western) Region, Al Ain, Taweelah and the Musaffah industrial area. A contractor will be selected in the first quarter of 2010 for detailed engineering work, according to the project timeline. The first construction contracts are expected to be awarded by the end of 2010, and the entire construction process will take between five to eight years. The trans-Emirates network is expected to cost roughly Dh30 billion. Abu Dhabi Airport Expansion To enhance travel and trade links, Abu Dhabi Airports Company is expanding the capacity of Abu Dhabi International Airport. In 2008 the airport was named the fastest growing international airport in the world by Airports Council International, and in 2009 it welcomed eight new carriers to the capital. Coupled with the dramatic growth of its flag carrier, Etihad Airways, airport planners have been hard at work to continue expanding infrastructure. In March 2009 Etihad completed its transfer of flights to the new Terminal 3, built at a cost of Dh1.1 billion, which has to increased the capacity at the airport by another five million passengers a year. In 2015, the Dh25 billion Midfield Terminal will open to provide another 20 million in

37 Doing Business with UAE passenger capacity in its first phase, and more than 40 million passengers a year when fully completed. The Midfield Terminal, which is designed in the shape of the letter 'X' by the Kohn Pedersen Fox Associates of the UK, will be built between the two runways. Al Ain and Al Gharbia Further afield, Al Ain City and Al Gharbia are undergoing their own 2030 Plans. In Al Gharbia, which comprises 83 per cent of the emirate's territory but just 8 per cent of the population, the focus is to bring in jobs outside the oil and gas industry, currently the major local employer, and to promote tourism. The blueprint for the region pays particular attention to the improvement of infrastructure as the population grows but also emphasises the need to maintain the region's character. The Al Ain 2030 Plan was announced in April 2009 and laid out a vision for the city, including a tram network, additional housing for UAE nationals and environmental protection. Work on a 2030 Plan for the rural areas of the Eastern Region was under way at the end of 2009. Dubai Strategic Plan The focus on master-planning is also strong in Dubai, where the guiding policy document is the Dubai Strategic Plan – 2015, unveiled in 2007. The Plan touches on urban planning; energy, electricity and water; roads and transportation and the environment. Sustainable development and a balanced view towards new infrastructure are at the core of the policy. On transportation, the Dubai Strategic Plan emphasises the need for improving mobility and safety, including an increased use of public transport, lower use of private cars, the building of more roads, bridges and links. It also seeks to prioritise the need to improve the management of accidents and emergencies, and using demand management to reduce peak congestion, such as road tolls. New road safety standards, safety audits and driver awareness campaigns are also planned. Dubai's Transport Goals Fuelled by a desire to improve the standard of living for all residents, the Dubai Roads

38 Doing Business with UAE

and Transport Authority (RTA) is planning to build more than 900 kilometres of cycling tracks in the city over the next ten years. Work on the first tracks, including 70 kilometres in Bur Dubai and 57 kilometres in Deira, has already begun. The most important step in the improvement of Dubai's transport, however, took place on 9 September 2009, with the inauguration of the city's first metro line, the 52- kilometre long Red Line. In the first two days of operation, it carried 110,000 people, surpassing expectations. In the first two months, nearly 3.5 million passengers rode the metro. The driverless system began operating with ten of 29 stations. The remaining stations have been built, and all are all expected to open by the end of February 2010. A second network, the Green Line, is under construction and expected to open in 2010. It will feature 18 stations, including 12 elevated and six underground stations and run a length of 22.5 kilometres. Plans for two further lines are being prepared. To help integrate the metro with other modes of transit, the RTA is also building up its bus fleet. In June 2009, it purchased 518 Citea buses from VDL, based in the Netherlands, with further deals expected to follow. The metro continues a focus on mass transit begun when Dubai launched its 5.5- kilometre Palm Jumeirah Monorail in April 2009, the first of its kind in the Middle East. The system connects the Palm Jumeirah island, including the Atlantis Hotel, to the mainland. Future plans call for extending the monorail to the Dubai Metro Red Line. Soon, the residents of Jumeirah and Dubai Marina will have yet another option for mass transit: a 14.5-kilometre tram service. The Al Sufouh Tram, which will also become the first of its kind in the region, will run along Al Sufouh Road from Dubai Marina to the Burj al-Arab hotel and the Mall of the Emirates. The project cost is Dh4 billion. The design has been custom-tailored to adapt to the Gulf climate and will become the first tramline with air-conditioned stations. The 11-kilometre first phase, which includes 2.5 kilometres of rail running above ground across a viaduct and 11 tramcars, is scheduled to open in 2011. Project engineers began work in mid-2009 on the viaduct and excavation for the platforms and stations, and the first tracks of the line were laid in December 2009.

39 Doing Business with UAE

Dubai's Airports and Ports The backbone of the Dubai economy has always been its logistics and transport infrastructure, and Dubai has continued to invest in this infrastructure to fulfill its long-term plans. With travel and tourism trade accounting for an estimated 25 per cent of the emirate's GDP, Dubai International Airport posted strong results in 2009 despite a global slowdown in air travel. The airport broke the 40-million passenger mark, a 9.2 per cent increase on 2008, making Dubai the sixth largest international airport by throughput and one of the few among the top 20 largest airports to register positive growth. In 2010, the airport is projecting a 13.4 per cent rise in traffic volumes. A number of infrastructure projects will see the airport continue to expand its capacity to stay one step ahead of growth. In 2008, Dubai Airports opened the Dh16.5 billion Terminal 3, dedicated to Emirates Airline, which is the single largest building in the world by floor space, and added another 1.5 square kilometres to the area of the airport's structures. A third concourse designed to handle Emirate's A380 Superjumbo fleet is being built at a cost of Dh4 billion. The facility is scheduled to open in late 2011 and will push capacity to 75 million travellers a year. Planners have also indicated that airport processes and procedures will be improved to expand the capacity of Dubai International up to 90 million passengers a year by the end of the next decade. Some options include an upgrade of its three terminals, and the introduction of a fourth terminal. The focus on boosting capacity at Dubai International is taking place in tandem with a gradual transfer of airlines over the next decade to the Dh30.11 billion Al Maktoum International Airport in Jebel Ali. Although limited services are set to open in mid- 2010 for phase one, with a capacity of 5 million passengers a year, completion of the new airport envisages a capacity of up to 160 million travellers a year and five runways, which would make it the largest airport in the world. Jebel Ali Port, the biggest in the Middle East, and the busiest container terminal between Asia and Europe, has also seen a number of new improvements after becoming a victim of its own success, with heavy queues and long wait times for vessels recorded in late 2008. The operator, DP World, responded by bringing in new

40 Doing Business with UAE giant tandem lift gantry cranes, the largest in the world and offering twice the handling capacity of traditional cranes. Rail-mounted gantry cranes were also introduced as part of the second phase of Jebel Ali's Container Terminal 2, which now boasts 29 tandem lift cranes and 60 rail-mounted gantry cranes. The port also expanded its workforce and trained new staff. With the new equipment, capacity at Jebel Ali now stands at 14 million TEUs (twenty foot containers or equivalent units) per year. As it foresees continued growth, DP World has outlined expansive plans to expand its capacity to up to 80 million TEUs by 2030, by extending the port out to a reclaimed island. Northern Emirates In the northern emirates, municipalities are making great strides in improving the quality of urban infrastructure. In particular Sharjah's urban centre has suffered from congestion because of a rising local population. In 2003 the emirate outlined a Vision 2020 Plan and implementation of this is now well under way. Among key aspects are an improvement of ur ban and community developments, as well as boosting tourism, drawing more students to its academic institutions and promoting trade and investment. In 2008 the emirate announced plans for investments in municipal services that constitute the most significant spending since the municipality was established some 80 years ago. Some of the improvements are focused on reducing traffic congestion, such as the introduction of a new intra-city public transport system, and adding parking spaces for residents and office workers. Looking ahead, the emirate is planning to introduce a paid parking scheme, and is also building multi-storey parking facilities in some residential areas. As a major logistics player, Sharjah continues to invest in its ports in the Gulf and on the east coast. Khor Fakkan, bordering the Indian Ocean, increased its capacity by 33 per cent to 4 million TEUs in 2009, while it also expanded the size of its quays and increased the number of gantry cranes by a third. In Ra's al-Khaimah, the emirate is embarking on a plan to attract new cargo and passenger airlines to its airport and to introduce new feeder services to regional cities. The plans involve significant investments over the next 20 years, including new airport aprons and taxiway system, as well as two new terminals that will be built in phases. Existing terminals will also be improved. The emirate also continues to

41 Doing Business with UAE improve Mina Saqr, the first deepwater port in the Gulf. The port is being expanded to handle 3 million TEUs by 2012 to boost its trans-shipment potential, as well as to improve the capacity to handle bulk cement and aggregate. The port of Fujairah, the second largest oil-bunkering facility in the world, is also expanding, and in September 2009 it awarded contracts to add additional berthing capacity for oil tankers, at the Oil Terminal 2. Spurred by the success of airports in neighbouring emirates, Ajman is preparing to enter the fray. Plans for a Dh12 billion international airport were first announced in 2007 and the project is currently scheduled for completion in the next few years. It will be built on an area of 5 square kilometres and, when finished, will serve at least 1 million passengers a year and handle a minimum of 400,000 tonnes of cargo a year.

Source: www.uaeinteract.com vvv

42 Doing Business with UAE

Electricity & Water

At the same time, however, there are current challenges, in terms of a lack of supply, particularly, via the Federal Electricity and Water Authority (FEWA), in the northern emirates, although both Abu Dhabi and Dubai also face constraints. Substantial progress was made during 2009 in tackling these problems. Thus, for example, Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Water and Electricity Authority (ADWEA) secured financing for new projects, whilst Abu Dhabi both extended financial aid for new infrastructure, and stepped up exports of electricity from its own power stations to Sharjah and the northern emirates in order to address the shortfall in supply. Recognising the importance of sustainable development, attention was also paid to promoting public awareness about the need to slow electricity and water consumption growth. Meanwhile, new sources of energy were planned in the form of solar plants and nuclear reactors. The year culminated with one of the most important development-related events in the country's history: the signing of a Dh75 billion (US$20 bn) contract with a consortium of Korean firms to build four nuclear power stations by 2020. The move means that the UAE will be the first Arab nation to tap atomic power on a commercial scale (see chapter on the Nuclear Programme). Capacity Increases The UAE continued to build up power capacity in 2009 to keep pace with consumption that grew strongly despite the economic downturn. Peak consumption of electricity jumped 11.3 per cent in Abu Dhabi and 6.3 per cent in Dubai, according to statistics issued in November 2009 by the Abu Dhabi Water and Electricity Company. Significant growth was also evident in the water sector, where the Government is

43 Doing Business with UAE grappling with lowering one of the highest per capita consumption rates in the world. The country has limited resources of fresh water and has become increasingly reliant on production by desalination through co- generation with power stations. According to the Ministry of Environment and Water, for much of the year, depending on temperatures, about 98 per cent of the water being consumed is produced by desalination. ADWEA continued work on the 2000 megawatt (MW) Fujairah 2 power station, at Qidfa, on the UAE's east coast. To be fuelled by gas supplied via a pipeline from Taweelah, north-east of Abu Dhabi, and due to be completed by the end of 2010, this will supply power both to Abu Dhabi and to the grid in the northern emirates. The attached desalination plant will also supply 130 million gallons per day (mgd) of water to Al Ain and Fujairah. ADWEA also connected to its first major renewable energy source: a 10 MW array of solar panels at Masdar City (see chapter on Renewable Energy) and closed a US$2.15 billion financing facility for the massive Shuweihat 2 power and water station. This plant will generate over 1600 MW and 100 mgd of water, when it opens in 2011. ADWEA is also planning its ninth Independent Water and Power Project (IWPP) since the sector was opened up to partial privatisation in 1998. The Regulation and Supervision Bureau, which oversees power and water production for Abu Dhabi, estimates that the emirate will need at least three new plants over the next seven years to keep up with demand. In Dubai, DEWA increased its generating capacity during the year with introduction of a new 611 MW capacity plant at Jebel Ali. However, it deferred bids for the first phase of a planned massive new power and water plant at Hasyan, since it was considered that the emirate had sufficient capacity to meet near-term projected demand. Meanwhile, DEWA expects to complete the Jebel Ali M Station – with a water production capacity of 140 mgd – during 2010. Power cuts in Sharjah during the hot summer months prompted a decision by the Sharjah Electricity and Water Authority (SEWA) to increase prices per unit, in the hope of reducing consumption, although consumers still enjoy a substantial subsidy. During the year, ADWEA boosted exports of electricity to Sharjah by 70 per cent, and in November

44 Doing Business with UAE

2009, H.H. Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi, donated Dh1 billion to the emirate for infrastructure development, especially new power generating capacity. A study by the Federal National Council indicated that about 1000 commercial buildings in Ra's al-Khaimah, Ajman, Umm al-Qaiwain and Fujairah completed but are awaiting connections to the electricity supply network. Temporary solutions to these problems included a mix of small-scale generators and medium-sized power plants. Ra's al- Khaimah brought 129 MW capacity online in March and April, but will need a number of other plants to fully supply new developments. One key question facing these emirates, and Dubai and Abu Dhabi more broadly, is the choice of fuel for new plants. New Energy Sources The Abu Dhabi government has committed tens of billions of dollars to develop new gas fields and to transfer gas from offshore facilities (see chapter on Oil and Gas). This is a continuing process in which, over the longer term, demand predictions continue to outpace supply estimates. In 2008, Dubai signed agreements to begin importing liquified natural gas, while Sharjah-based Dana Gas also has an agreement with Iran to import gas, although disagreements over pricing mean that the agreement has yet to be implemented. The low prices paid by utilities, themselves a direct result of caps on the prices that can be charged for electricity, continues to create difficulties in resolving this issue. Alternatives to gas-fuelled power generation are also under consideration. Ajman and Ra's al-Khaimah have put forward plans to build coal-fired power stations with capacities of 1000 MW and 600 MW, while DEWA announced that it would seek bids on two separate coal projects. Meanwhile, in Abu Dhabi, ADWEA has not ruled out using diesel or crude oil as a fuel for the emirate's ninth IWPP. Looking to the future, Abu Dhabi is expected to unveil a framework to support the higher generation costs of renewables in its new comprehensive energy plan, as part of its goal to have renewables produce 7 per cent of the emirate's electricity by 2020. It is expected

45 Doing Business with UAE that nearly all of that renewable capacity, amounting to about 1500 MW, will be solar. However, it is also generally agreed that the long-term answer is nuclear power (see chapter on Nuclear Programme). Reducing Consumption In the face of high growth in consumption, local governments across the country began to place increased emphasis on reducing consumers' waste of electricity and water. Sharjah's sharp increase in electricity prices was the first in a number of price hikes expected across the UAE as governments investigated the possibility of bringing utility rates closer to those of other countries. Such a step, of course, has wide economic and social impacts. In August 2009, the Dubai government created a high-level planning body that will advise the government on ways to control growth in demand for power and water. The Higher Energy Council, under the chairmanship of Sheikh Ahmed bin Saeed Al Maktoum, includes representatives from DEWA, Dubai Aluminium, Emirates National Oil Company, Dubai Petroleum, the Dubai Nuclear Energy Committee and the Dubai Supply Authority. DEWA also sponsored a number of high-profile campaigns to convince its customers to reduce waste of electricity and water. In Abu Dhabi, the Executive Affairs Authority commissioned a study to determine the extent of resources that could be saved with better demand management. The study found that even without an increase in prices, the emirate could save itself the cost of two power stations and a water desalination plant if it steps up measures to promote efficiency in water and electricity use. Recommendations by experts included mandates on the efficiency of appliances and household goods, better education campaigns, and a strengthening of building codes to improve insulation and cooling systems. In an attempt to further rein in the growing need for these massive plants, governments across the Emirates teamed up with environmental groups to reduce water usage in homes and commercial buildings. Among the initiatives taken was a high-profile campaign, led by the Environment Agency – Abu Dhabi (EAD) in association with the Emirates Wildlife Society, to install water-saving devices in 100,000 public buildings and homes. Each device installed on shower-heads and taps could reduce water flow by 30 to 35 per cent. EAD aims eventually to cut per capita consumption from 550 litres per day to 350 litres per day. One of the first steps to improving conservation is gaining a better understanding of where water is actually consumed. After a lengthy campaign in Abu Dhabi, approximately 80 per cent of customers' use of water is metered, with officials expecting full coverage within one to two years. Source: www.uaeinteract.com vvv

46 Doing Business with UAE

Renewable Energy

The Masdar Initiative, led by the Abu Dhabi Future Energy Company (ADFEC), continued work on development of its 'Masdar City', while at an international level, the UAE succeeded in winning the contest to be selected as headquarters for the new International Renewable Energy Agency (IRENA). There remain, of course, significant challenges yet to be resolved. It is not clear, for example, whether generation of electricity through solar power is economically feasible in a heavily-subsidised market, while there are also technical issues that currently impede the use of some solar technologies because of high levels of dust and haze in parts of the Emirates. Beyond these, of course, the biggest unknown for the renewable energy sector rests with the ability of the world's leaders to agree on a new climate change treaty in the coming year, the details of which will have an important impact on the types of clean energy projects prioritised in the UAE. Policy The Abu Dhabi government announced in January 2009 that it would seek to generate 7 per cent of electricity from renewable energy sources by 2020. It is expected that the bulk of this target, which did not count nuclear energy as 'renewable', will be met by solar power plants. The target will be supported by a comprehensive energy policy that is due for release in 2010. Among the key issues that the policy will address is how to balance the relatively higher costs of generating electricity from renewable sources in a way that provides discounts for reducing carbon emissions and encourages sustainable energy solutions. The 'playing field' can either be levelled by reducing consumer subsidies

47 Doing Business with UAE for unsustainable electricity generation or by direct subsidies to the renewable energy companies. One frequently cited model for Abu Dhabi, the 'feed-in' tariff, is common in Europe. Under this scheme, utilities are obliged to pay above market-rates for a set quota of clean electricity from energy companies. However, it is expected that electricity prices will remain at highly competitive levels in the UAE despite the introduction of renewables and nuclear power. IRENA and Copenhagen Recognition of the UAE's renewable energy efforts received a significant boost in June 2009 when members of the six- month-old UN agency IRENA selected Abu Dhabi to host its headquarters, the first time a UN agency has been headquartered outside Europe or America. The win was the culmination of a hard-fought competition against Germany and Austria that saw Sheikh Abdullah bin Zayed, the Minister of Foreign Affairs, and other top officials visit over 90 countries to garner support (see chapter on Foreign Policy). The UAE's bid centred on Masdar City, the carbon neutral, zero-waste complex at the edge of the capital that will host IRENA's headquarters. The UAE offered IRENA extensive financial support, including free rent at Masdar City, and soft-loans totalling US$50 million a year to permit support of renewable energy projects in the least developed countries to commence immediately. For its first seven years, the UAE pledged US$22 million annually in direct funding for IRENA, and US$15 million annually after this period. IRENA established its temporary headquarters in Abu Dhabi in late summer 2009, and thus created an independent voice lobbying countries to make renewables a key part of a future climate change treaty. Carbon Capture Climate change talks based on the political agreement reached at the global summit in Copenhagen in December 2009 are destined to be one of the most important influences on Masdar and the development of the renewable energy sector in general in 2010. For Masdar, a key question is whether negotiators will agree to 48 Doing Business with UAE

extend UN-administered financial assistance to efforts to capture carbon emissions from power plants and factories and bury them underground. The Clean Development Mechanism (CDM) currently awards credits to other types of projects in developing countries that reduce emissions. Those credits are then sold on the carbon market in Europe, potentially generating billions of dirhams worth of revenue. Developing cost-effective carbon capture technology has become a priority for Masdar. One idea currently being examined is the injection of carbon dioxide emissions into oil wells, to replace the gas currently being injected to maintain reservoir pressure, which can then be used for other purposes. Carbon dioxide injection may also increase the amount of oil that can be recovered. Funding through the CDM could play an important role in the scheme. A pilot project in the onshore Rumaitha oilfield, operated by the Abu Dhabi Company for Onshore Oil Operations (ADCO) part of the Abu Dhabi National Oil Company (ADNOC) group, commenced in late 2009, as part of an ADNOC investigation of the effectiveness of the process. Solar Comes Onstream Almost all of the significant renewable energy projects in the UAE have been led by Masdar, which is investing in a number of renewable energy technologies to supply Masdar City and help meet Abu Dhabi's target to generate 7 per cent of electricity from renewables by 2020. Masdar completed an intricate and extensive array of solar panels, known as photovoltaics, on a site adjacent to Masdar City at the beginning of 2009. The panels, reliant equally on technologies from the US company First Solar and China's Suntech,

49 Doing Business with UAE were procured and installed by Enviromena, a fast-growing local solar contractor and the array has the capacity to generate 10 MW of power, which is fed into ADWEA's power grid. The firm is expected to provide the bulk of power generating capacity to meet Abu Dhabi's 7 per cent target, which amounts to roughly 1500 MW of solar and other renewable sources. Masdar has been testing a number of solar technologies to determine which will take the lead role. At the beginning of 2009, a technology called concentrated solar power (CSP), or solar thermal, appeared to be the favourite to generate up to 90 per cent of Abu Dhabi's clean energy. CSP uses mirrors to concentrate the heat of the sun's rays and boil water, which then turns a conventional generating turbine. The technology has been deployed at a large scale in Spain, and proponents pointed to its advantages for Abu Dhabi: it can generate large amounts of uninterrupted power and maintain output for several hours after the sun sets. Masdar disclosed plans for a 100 MW CSP plant called Shams 1 (Shams means 'sun' in Arabic) in Madinat Zayed, in the Al Gharbia (Western) Region. Plans were also drawn up for a Shams 2 and a Shams 3. Computer modelling showed, however, that dust and haze in the air would reduce the plants' efficiency by up to 20 per cent and the plans are currently being reviewed. At the same time, costs for the main competitor technology – photovoltaics – fell sharply, suggesting it could be deployed at a larger scale than originally thought. Photovoltaics have an additional advantage in that their output is less susceptible to the diffusion of sunlight caused by dust and haze. Award of a construction contract for Shams 1 was delayed, as Masdar investigated moving the plant to another location in the emirate. A third competitor technology entered the fray in the autumn, when Masdar announced plans to study the feasibility of using concentrated photovoltaics (CPV) at Masdar City in cooperation with a Spanish research institute. CPV, which uses lenses and motors to track the sun's movements and focus its rays on photovoltaic panels, is far more expensive than competitor technologies but is also much more efficient. While the technology is still in its infancy, it is expected that as production of CPV systems is scaled up costs will decrease and the technology could later become a viable competitor as a renewable energy source. However, it remains likely that CSP and photovoltaics may be deployed in equal numbers to meet the 7 per cent target.

50 Doing Business with UAE

Masdar also aims to become a major producer of photovoltaics through its wholly owned subsidiary, Masdar PV, and has completed construction of a panel manufacturing plant in Ichtershausen, Germany that began production of thin-film PV, which is cheaper but also less efficient than traditional silicon panels. The plant has the capacity to produce 65 MW worth of panels every year. Masdar PV is hoping to undersell competitors by producing the largest PV panel in the world, at 5.7 square metres. Building of a second PV plant at Taweelah, in Abu Dhabi, is being considered. Other Technologies Solar is clearly the country's key renewable energy resource, but Masdar is also investing in other technologies, including wind and geothermal. The company made headlines in May 2009 when it decided to invest €2.2 billion (Dh11.01 bn) with two international partners to build the London Array, the world's largest offshore wind farm. In April the British Government had announced it would lend financial support to offshore wind farms across the country. The investment furthered the company's ambition to be a global player in the most advanced renewable energy technologies. Masdar has also awarded contracts to tap an energy source unfamiliar in the Gulf: geothermal power. Masdar, together with an Icelandic firm, was plannning to commence drilling in early 2010 of at least two wells to depths of 3 kilometres and 4 kilometres to tap underground heat that amounts to between 80 and 140 degrees Celsius under Masdar City. If the expected heat sources are encountered, they will be used to dry out dessicant from the city's cooling system. Research into new energy sources and improvement of existing systems is already taking place at the Masdar Institute of Science and Technology (MIST), which was set up in partnership with the prestigious Massachusetts Institute of Technology (MIT). The Institute is expected to be an incubator of patents and proprietary technology that Abu Dhabi hopes to one day export abroad. In October 2009, the Institute was commissioned by Boeing, the aircraft manufacturer, Honeywell UOP, a fuel technology firm, and Etihad Airways to study the feasibility of producing aviation fuel from saltwater plants grown in Abu Dhabi. Masdar officials expect more such grants in the years to come. Source: www.uaeinteract.com vvv

51 Doing Business with UAE

Telecommunications & Post

This was underlined in the latest edition of the 'Global Information Technology Report', produced by the World Economic Forum, which lists the UAE in twenty- seventh place in its Networked Readiness Index (NRI) 2008–2009 rankings, marking it out as one of the highest rated networked economies in the world and the highest in the Gulf. The NRI measures the capacity of economies to fully leverage information and communications technology (ICT) for increased competitiveness and development. Telecommunications Operators The UAE' telecommunications sector is regulated by the UAE's Telecommunications Regulatory Authority (TRA) and is presently serviced by two telecommunications operators, Etisalat and du, both of which are majority owned by the Government. Both providers have shown remarkable resilience in the difficult macroeconomic climate. Etisalat has been investing in communications infrastructure and providing, since its establishment in 1976, a full range of telecommunications service, including fixed- line telephony, fixed and wireless internet access, cable TV and mobile coverage in the UAE.. The corporation operated a monopoly until du launched mobile services in 2007. However, Etisalat remains the UAE's biggest telecom provider and is expanding dramatically internationally. Etisalat is now the sixteenth largest telecommunications firm in the world and its international subscriber base is in the region of 100 million, with operations covering nearly two billion people across its 18 markets around the world. Despite the economic downturn, Etisalat maintained 9 per cent year-on-year growth in net profits and 6 per cent in revenues in 2009 and the prospects for 2010 are very positive. The corporation's impressive growth in revenues over the previous three

52 Doing Business with UAE years having helped finance strategic expansion, it does not suffer from indebtedness and has continued to spend where needed, whether on services or infrastructure, such as the fibre-optic network being rolled out in Abu Dhabi, which will be completed in 2011, ensuring that the capital will be the first city in the world to be fully connected in this manner. du offering voice, data and entertainment on mobile networks and converged broadband, TV, and landline, is concentrating primarily on building its customer base in the domestic market and continues to show steady growth in revenues as well as subscribers. du has quickly gained a 32 per cent share of the UAE mobile phone market of 10.3 million subscribers, up 10 per cent on 2008, due in part to its strategy of moving away from targeting low-spending customers and towards more lucrative subscribers with data-rich mobile devices. While Etisalat has focused on expanding its core telecoms operations internationally, du is taking a different route with its push into digital services such as online media. du is now considering up to four new ventures as it looks to expand its business outside the UAE and maintain its growth outlook. In the first half of 2010, du will help launch an Arab online platform for content providers, a digital lifestyle offering similar to Etisalat's eLife telecoms bundle and an internet traffic management venture. The company will also help launch a domestic mobile television service by the end of the year. Both Etisalat and du recently launched telecoms services in the Burj Khalifa, the first location in the UAE where residents can choose their broadband provider. Satellites Al Al Yah Satellite Communications Company PrJsc (Yahsat), is the UAE's first nationally-owned satellite operator and is a wholly owned-subsidiary of Abu Dhabi government-owned Mubadala. The Abu Dhabi-based company will provide innovative satellite solutions for government and commercial communications in the Middle East, Africa, Europe and south-west Asia. Yahsat will launch the Yahsat 1A satellite in October 2010 and is scheduled to launch the Yahsat 1B satellite in the first half of 2011. This will enable Yahsat to offer a satellite broadband service 'Yahclick' throughout the satellite's range. Abu Dhabi-based Thuraya Satellite Telecommunications Company, a leading provider of cost-effective, satellite-based mobile telephone services through dual- 53 Doing Business with UAE mode handsets and satellite payphones, is majority owned by Etisalat. Thuraya empowers people in rural and remote areas as well as those at sea or beyond the reach of terrestrial networks by providing them a reliable access to voice and data communications. The company launched a third geosynchronous satellite in 2008: Thuraya 3 replaces the ageing Thuraya 1, while Thuraya 2 will continue to provide coverage for the Middle East, Europe, North Africa and some other markets. Thuraya 3 brings countries of the Asia-Pacific region, including such major markets as China, Australia, Japan, Korea and Indonesia under Thuraya's footprint and extends its coverage to nearly two-thirds of the globe's population. Thuraya unveiled a new corporate identity in 2009 and also launched its new ruggedly practical handheld phone, the Thuraya XT. Postal Services Emirates Postal Corporation (EPC) was formed in 2001 following restructuring of the UAE General Postal Authority. Since then, a major change in the corporation's business model and operational strategies, including the introduction of integrated IT systems, automated sorting centres and agreements with international postal authorities, as well as the addition of new business streams in cargo and logistics, financial services, direct marketing, mail fulfilment and other areas, has resulted in a remarkable turnaround in the company's fortunes. A holding company, Emirates Post Group, oversees a rapidly expanding family of subsidiaries that now includes Emirates Post, the postal corporation, Empost, the UAE's national courier company, the Electronic Documentation Centre, Emirates Marketing and Promotions, and the Wall Street Exchange Centre. Emirates Post continues to pursue a successful diversification strategy, acquiring new businesses and forming new alliances. The UAE was re-elected to the Universal Postal Union's 40-member Council of Administration (CA) and was elected to the 40-member Postal Operations Council (POC) for 2009 to 2012, reflecting the important role that it has been playing in the Union. The UAE's postal services centenary on 19 August 2009 was celebrated by Emirates Philatelic Association and Emirates Post with an exhibition of some of the rarest and oldest stamps collected by their members. Emirates Post also opened its one hundredth post office in the UAE in 2009. Source: www.uaeinteract.com vvv

54 Doing Business with UAE

Education

In recent years, the education sector has taken on a new significance: its reform and improvement represents a critical step in the country's ongoing development aims, but at the same time presents major challenges for policymakers if they are to succeed in plans to diversify the economy and reduce private-sector dependence on imported labour. That challenge can be starkly summed up by demographic figures: according to the 2005 census, 51 per cent of nationals are under the age of 19 while 26 per cent are under the age of nine. The Government's plans are linked to a reform of the P-12 school system, in order to provide students with adequate preparation for the demands of university coursework and private-sector employment. A key component of Government strategy has been the decentralisation of educational authority from the federal Ministry of Education to local education bodies in each emirate. Three major bodies – the Ministry of Education, which has full jurisdiction over the northern emirates, the Abu Dhabi Education Council, and Dubai's Knowledge and Human Development Authority – are working to improve the sector. Other significant developments included the appointment of a new education minister, Humaid Mohammed Al Qattami, in the spring of 2009. Primary and Secondary Education Addressing the performance of public schools at primary and secondary level has been at the top of the Government's agenda for the past decade and in 2009, 23 per

55 Doing Business with UAE cent of the federal budget, or Dh9.706 billion was earmarked for education. But the challenges associated with improving the education system are ongoing. Studies commissioned by the Ministry of Education in 2001 and 2005 found that only 44 per cent of teachers had a degree in education and most new teachers spent only two weeks on average in training before commencing work. At state schools, according to the same studies, teachers were paid significantly less than those at their international counterparts. Many Emirati parents in major metropolitan areas send their children to relatively higher-performing private schools and all but a small minority of expatriate children are enrolled at private institutions, most of which are run by for- profit companies. Over the last year, government entities at the federal and local level have sought to improve the quality of private schools through inspection and accreditation schemes to ensure that every child in the UAE receives a quality education. Since 2008, when the Ministry of Education released its strategic plan for educational reform, it has been working toward replacing the old school curriculum with a new standards-based curriculum developed by the Abu Dhabi Education Council (ADEC); retraining teachers; developing a model for school accreditation; and overhauling special education. In June 2009, ADEC released its strategic plan for the P-12 sector, which charts the course of their reform agenda through 2018. ADEC, established in 2005, has produced a curriculum in the majority of Abu Dhabi schools that focuses on acquiring skills. In 2006, ADEC launched a public private partnership programme (PPP) in its public schools. Initially seen as a pilot programme, PPP was to last for three years, but has now been extended. The scheme pairs local schools with international firms that are charged with introducing Abu Dhabi's new curriculum, increasing instruction hours in English, and providing quality professional development for teachers without degrees or certificates in education. There are currently 11 companies working in Abu Dhabi's partnership schools.

56 Doing Business with UAE

ADEC has also increased the amount of instruction in English in Abu Dhabi schools, having hired close to 500 native English speakers to teach in its public schools. Problems with English teaching at government schools in general have caused delays for pupils entering universities, where English is the primary language of instruction (see below). ADEC has also lengthened the school day to come closer to international standards and is also investing heavily in professional development for principals and teachers, as well as working toward teacher certification. In 2009, ADEC announced that it would replace 100 old school buildings with new environmentally sound designs over the next decade. Similar strides to improve local schools in Dubai have been made by the Knowledge and Human Development Authority (KHDA), a regulatory authority set up in 2006. Major steps have been taken in the past two years toward collecting reliable data on public and private schools through a number of initiatives such as school inspections (see below) and participation in international benchmarking exams. The data will be used to target key areas for improvement in schools. The federal Ministry of Education has also announced plans to participate in the next round of two international exams: TIMSS (Trends in International Mathematics and Science Study) and PISA (Programme for International Student Assessment). Results from Dubai's participation in TIMSS revealed that students at UAE public schools are lagging behind their international peers in maths and science testing. The UAE is also striving to build a national teaching force, and to meet the challenge of attracting men, in particular, into teaching. 57 Doing Business with UAE Accreditation and School Inspections There has been significant improvement in private education across the UAE. This is particularly important given the fact that a relatively high percentage of students in the Emirates are enrolled in private schools: in Dubai 50 per cent of all students are in private schools, while the number for Abu Dhabi stands at around 40 per cent. Many private international schools in the UAE are accredited by international bodies and there are currently 17 International Baccalaureate schools operating in the country, all of which have obtained approval from the International Baccalaureate Organisation in Geneva to run their programmes. In an effort to ensure uniform standards across all schools, education authorities have introduced inspections and accreditation schemes at both federal and emirate levels. Dubai's KHDA introduced the first-ever comprehensive school inspections during the 2008–2009 academic year. Prior to the KHDA's formation in 2006, private schools in the emirate fell under the jurisdiction of the federal Ministry of Education. Summary inspection reports were published on the KHDA website for parents to read, and the authority published a report on the state of Dubai schools in the spring of 2009, which revealed a number of inadequacies in the worst performing schools, ranging from the use of corporal punishment to poor teaching provisions in key subject areas such as maths, science, Arabic and English. Inspections of Abu Dhabi's schools will also be undertaken under the supervision of ADEC. In the autumn of 2009, ADEC transferred approximately 8000 expatriate students studying in government-run evening schools into regular public schools. By 2012, ADEC will have closed down approximately 70 private schools that operate out of villas. In the autumn of 2009, the Federal Government launched a pilot accreditation scheme, which, if successful, will be rolled out in the northern emirates to ensure that public and private schools are meeting uniform standards. A timeframe for requiring schools to meet accreditation standards will also be released. Special Education Reforms to special education are under way across the country. In 2006, the Cabinet passed the UAE Disabilities Act, a comprehensive law that requires public and private

58 Doing Business with UAE schools to provide equal access to all children. The law was subsequently amended in 2009 to replace references to disability with the phrase 'special needs' (see chapter on Human Rights). Integration is considered key to the reform of special education at both federal and local levels. The Ministry of Education began integrating national students from a variety of special needs centres into regular public schools in 2009. At the federal level, the ministry is drafting a new set of standards for public and private schools to ensure that schools comply with the new law, which is due to be implemented in 2010. The Abu Dhabi Education Council is also releasing a new set of bylaws for private schools in 2010 under which penalties will be incurred for non-acceptance of children with special needs. Most private schools are presently ill-equipped to accommodate children with severe physical and intellectual disabilities. A number of private centres exist, but most graduates from these centres do not leave school with an academic diploma. New policies are being developed by the government to address these gaps. Higher Education Like the P-12 sector, tertiary education in the UAE is undergoing rapid growth and change. The nation is poised to become a hub for higher education in the region. Federal universities are expanding to accommodate growing student populations, foreign universities are flocking to the UAE to set up centres of learning, and the Government has embarked on several partnerships that have allowed top global universities to establish campuses in the Emirates. UAE citizens can attend federal universities free of charge and generous scholarship funds exist through the Ministry of Higher Education and Scientific Research and other organisations, both private and governmental, to allow UAE citizens to pursue higher education at universities abroad. In 2008, the Ministry of Higher Education and Scientific Research awarded 550 scholarships to students wishing to pursue their education abroad. 59 Doing Business with UAE

During the 2009–2010 academic year, 13,102 secondary school graduates were awarded a place at one of three federal institutions or given a scholarship to study abroad, down from 13,315 the previous year. The UAE University in Al Ain admitted 3146 students, the Higher Colleges of Technology 7423, and Zayed University 1813. Of those students admitted, 62.2 per cent were female and 37.8 per cent were male. For the second consecutive year, every UAE citizen who qualified for a place in the federal university system was able to take up that place as a result of an emergency funding increase. Prior to 2008, a funding deficit meant that thousands of UAE citizens were denied places at federal universities despite meeting university qualifications. A new formula that would link funding to the number of qualified students is pending approval from federal authorities. This would help institutions to cope with growing numbers of UAE citizens expected to apply to university in the coming years. Policymakers are also meeting the challenges posed by a lack of proficiency in basic English, the medium of study at university level. In 2008 only 8 per cent of Emirati university applicants posted scores higher than 185 on the Common Educational Proficiency Assessment exam, which would have allowed them a chance to bypass remedial English classes and proceed directly into university coursework at UAEU. These 'bridge' programmes eat up a substantial percentage of the state higher education budget: in 2008 Zayed University spent approximately Dh40 million (US$10.8 mn) on its 'academic bridge' programme – approximately 20 per cent of its academic budget. Significant investment in the federal university system took place in 2009. In December 2009, Mubadala, an investment arm of the Abu Dhabi government, announced it had secured US$1 billion (Dh3.67 bn) of financing for the new Zayed University campus, which is to be built on 75 hectares in the new Capital District. The new campus, which is scheduled for completion in 2011, will accommodate up to 6000 students and staff. Zayed University also received accreditation in 2009 from the Middle States Commission on Higher Education, making it the first federal university to be accredited by an outside monitoring body. The UAE University is the oldest university in the country. With ten colleges, it educates over 12,000 students every year. More than 40,000 students have graduated from UAEU to date. Like ZU, UAEU has plans for significant expansion, and a new campus is under construction in Al Ain.

60 Doing Business with UAE

The Higher Colleges of Technology (HCT) system offers thousands of UAE citizens a more technically oriented education. Aside from the HCT, several other institutions provide vocational and technical education in the UAE. Among them are the Etihad training centre, the Emirates Aviation College for Aerospace and Academic Studies, the Emirates Institute for Banking and Finance, and Etisalat's colleges and university. A new vocational education centre, funded by the Abu Dhabi Government, and run by Abu Dhabi Tourism Development and Investment Corporation (TDIC), opened in 2008 to train residents in the Al Gharbia (Western)Region in tourism-related jobs, a sector with enormous potential for local employment. A number of foreign universities, from the Paris Sorbonne to Michigan State University, have opened campuses in the UAE in the last five years, offering a wider variety of choice to local students. Foreign universities must obtain accreditation to operate in the UAE from the Ministry of Higher Education and Scientific Research unless they are located in free zones. Until 2009, universities could open in Dubai's free zones without such accreditation, but the KHDA, which regulates education in Dubai, now requires that universities in free zones be accredited by its own University Quality Assurance International Board or the Ministry of Higher Education and Scientific Research. The autumn of 2010 will mark a significant milestone for tertiary education in the UAE, with the opening of the Abu Dhabi campus of New York University. NYU is the first major American research university to open a comprehensive liberal arts college in the UAE. The plans for NYU Abu Dhabi, first announced in October 2007, represent a project unlike any other in global higher education – to create a top international liberal arts university in the Gulf as part of a 'global network' that includes NYU's campus in Washington Square, New York. The project is funded entirely by the Abu Dhabi government, and will function independently of other local universities and the Ministry of Higher Education and Scientific Research. The first class of students, recruited from around the world, will start coursework in the autumn of 2010 in a temporary downtown campus until NYU Abu Dhabi's permanent home on Saadiyat Island is completed in 2014. INSEAD, one of the world's largest graduate business schools, has been operating a Middle East campus in Abu Dhabi since 2007, and now runs seven executive- education programmes. INSEAD's campus was also established to better understand

61 Doing Business with UAE and contribute to the development of the MENA region through in-depth research of important business topics of both regional and global interest. In February 2008, a branch of the New York Film Academy opened in Abu Dhabi; it will launch its first bachelor's degree programme in 2010, with offerings in film-making and acting, and will also offer its first MA programmes, in film-making and documentary film-making. The Dubai School of Government (DSG), a research and teaching institution focusing on good governance and public policy in the Middle East, launched its first masters programme in 2009. DSG now offers two graduate programs – the Master of Public Administration (MPA) program, which has been designed in cooperation with Harvard Kennedy School, and the Executive Diploma in Public Administration (EDPA), which is awarded by the Lee Kuan Yew School of Public Policy at the National University of Singapore. In addition to acting as a graduate school, DSG researchers produce reports on important issues affecting the Arab world. The Petroleum Institute (PI) was founded in 2001 with the aim of establishing itself as a 'world-class' institution in engineering education and research in areas of significance to the oil and gas and the broader energy industries. The PI's sponsors and affiliates include the Abu Dhabi National Oil Company (ADNOC) and four major international oil companies. The campus has modern instructional laboratories and classroom facilities and is now in the planning phase of three major research centres on its campus in Sas al-Nakhl, Abu Dhabi. In the autumn of 2009, the Masdar Institute of Science and Technology (MIST) opened its doors to its first class of graduate students. The institute, which is connected to the Abu Dhabi government's ambitious carbon-neutral Masdar City project, is a private not-for-profit research centre devoted to the study of renewable energy. Developed with the support of the Massachusetts Institute of Technology, it will offer Masters degrees and PhD programmes in science and engineering, and provide fellowships to especially talented students and researchers. The Emirates Foundation has also been supporting research into areas such as science and engineering, information technology and environmental sciences.

Source: www.uaeinteract.com vvv

62 Doing Business with UAE

Healthcare

Health care provision in the UAE is universal and pre-natal and post-natal care is on a par with the world's most developed countries. As a consequence, life expectancy at birth in the UAE, at 78.5 years, has reached levels similar to those in Europe and North America. Policy A number of unforeseen events in 2009 impacted on health strategy in the UAE: the global financial downturn and emergence of the H1N1 virus were not only unexpected and unplanned, but created circumstances that were entirely new to the UAE. The efforts of the three major health bodies – Ministry of Health (MoH) Health Authority–Abu Dhabi (HAAD) and Dubai Health Authority (DHA) – switched rapidly and effectively to preventive medicine, crisis management and disease control. The MoH, which has full jurisdiction over the northern emirates, also underwent some major changes in 2009, most significantly the appointment of a new health minister, Dr Hanif Hassan. Since his appointment in May 2009, the Minister has shifted the focus of the MoH and is concentrating on completing current projects rather than embarking on new ones. The Ministry is focusing on bringing health care in the northern emirates up to par with the services offered in Abu Dhabi and Dubai and has restructured a number of committees including the National Committee Against Diabetes and the Medical Committee for the Eradication of Polio. In November it launched the Violations Committee in an effort to be more transparent. The first meeting of the UAE National Committee for Organ Transplantation was held in December 2009 to discuss progress of legislation regarding the issue of cadaver transplants. Possibly the most significant policy advancement in the northern emirates was the

63 Doing Business with UAE creation late in 2009 of a Federal Health Authority. This will be responsible for operating all the public hospitals in Sharjah, Fujairah, Umm al-Qaiwain, Ra's al-Khaimah and Ajman. Once up and running, it will be an independent body with its own budget and target. The aim is to allow the MoH to focus on regulation and legislation. HAAD has recently amended a number of policies such as the licensing policy for oversees applicants, who can now apply for a licence online rather than coming to the UAE. Daman, the national insurance company based in the capital, also set about amending its repayment scheme to a payments by results system. Clinical outcomes will be published, giving the public more information on where to seek treatment. Hospitals and clinics have to submit case-by-case data to the insurer who will work out a repayment figure based on the performance of the facility. In 2008 DHA embarked on a four-year transformation programme with heavy focus on regulation, strategy and funding. However, financial considerations forced decision makers to rethink some of the plans. In January 2009 DHA began a mandatory relicensing programme that saw almost 6000 physicians register to have their credentials verified against tailored standards on a par with international guidelines. The process is ongoing with the ultimate aim of boosting quality of patient care. New Facilities Despite the financial climate, health care in the UAE remains a focus of investment with a number of government and private projects being undertaken in 2010. SEHA, the health services company that operates government hospitals and clinics in Abu Dhabi, is funding a multibillion-dirham project to replace Al Mafraq Hospital, 40 kilometres outside the capital, and Al Ain Hospital, in Al Ain city, by 2013. The Ajman Health Zone and the MoH are embarking on a Dh500 million expansion project involving Sheikh Khalifa bin Zayed Hospital and the creation of a number of primary health centres, a diabetes and obesity centre and a medical fitness centre. Umm al-Qaiwain Hospital is also undergoing a revamp costing more than Dh400 million and the new 400-bed Jebel Ali Trauma and Emergency Centre in Dubai is due for completion in 2010. The 200-bed Al Jalila Children's Speciality Hospital in Dubai is currently being built and is expected to be ready in 2011.

64 Doing Business with UAE

Mubadala Healthcare, part of the Abu Dhabi government-owned Mubadala Development Company, launched the first part of its major pathology laboratory project in Dubai in December 2009. Its hub in Abu Dhabi is expected to open in 2010 and have a dramatic effect on services. The National Reference Laboratory will be the first of its kind in the region and will test a large number and variety of samples that are currently sent abroad. It will reduce waiting times for results and costs to local healthcare providers. Health Insurance The introduction of mandatory health insurance in Abu Dhabi for expatriates and their dependents over two years ago was a major driver in reform of healthcare policy. Abu Dhabi nationals were brought under the scheme from 1 June 2008. Eventually, in accordance with federal law, every Emirati and expatriate in the country will be covered by compulsory health insurance under a unified mandatory scheme. For now, Abu Dhabi continues to lead the way. The number of insured people in the emirate has reached approximately 1.9 million, up from around 150,000 when the scheme was introduced in 2006. It has taken some time for the insurance system to evolve and HAAD and Daman, the National Insurance Company, have made a number of amendments in an effort to boost competition and ensure the sustainability of the system. In June, HAAD cut the dental entitlement for UAE nationals in the Thiqa programme down to 50 per cent after discovering it was being abused and fraudulent claims were being submitted to Daman. The move underlined HAAD's determination to ensure that the scheme is sustainable. The DHA's plans, announced in January 2009, to introduce a new health-funding model that would essentially provide free access to basic health care to every resident in the emirate, were later postponed. Under the proposal, rescheduled for phased introduction starting in 2010, individuals will have to register with an outpatient clinic that would receive a set fee to manage the patient's care. Employers or sponsors will pay a fee to the government, which would be mostly used to provide care for employees. The MoH continued to work during the year on a federal health insurance law that

65 Doing Business with UAE would unify access to health care across the UAE. Assessments are being made as to its compatibility with the present and planned systems for Abu Dhabi and Dubai. Preventive Medicine It is fair to say that now more than ever preventive medicine and public health are critical to the long-term well-being of the UAE population. The population is still young and experts predict a rise in many of the lifestyle diseases in coming years. There are a number of cultural barriers that are slowly being eroded but still affect serious issues such as cancer. The UAE has very high rates of diabetes and cardiovascular disease, which is one of the top three most common causes of death. In terms of preventive medicine, the majority of cases of diabetes, cardiovascular disease and obesity–related illnesses are avoidable. Despite this, diabetes affects one of five people in the UAE and cardiovascular diseases account for 28 per cent of all deaths. Road traffic accidents also account for 15 per cent of all deaths in Abu Dhabi, a pattern that is repeated across the country. HAAD focused heavily on preventive medicine in 2009, launching a number of public health campaigns and introducing new policies. In June, it tackled safety on the roads and worked with Sheikh Khaled Al Qassimi, the BP-Ford Abu Dhabi world rally driver, as ambassador for its campaign. Adverts featuring Sheikh Khaled were displayed in cinemas, on television, in newspapers and on billboards across the emirate. Source: www.uaeinteract.com vvv

66 Doing Business with UAE Environment

The conservation and protection of the environment of the United Arab Emirates, including the fauna and flora that are to be found within it, is perhaps one of the most complex tasks that the country currently faces.

The high temperatures and low rainfall that are responsible for its highly arid desert environment have meant that the native fauna and flora have had to adapt in a variety of ways to be able to survive. Any minor changes in climatic conditions could have a seriously damaging effect upon the UAE's biodiversity. Moreover, the lengthy coastline, in particular along the country's Arabian Gulf coast, is low-lying, much of it being immediately supra-tidal salt-flats. Even a small rise in sea level, prompted by the melting of the polar icecaps as a result of global warming, could have a devastating effect in the coastal zone, in which the overwhelming majority of the country's inhabitants live and where much of planned development is due to take place. Indeed, scientific studies are detecting signs that sea level in the Gulf may have already started to rise. A further aspect of the complexity of environmental protection is the challenge posed by the country's rapid economic growth. The population has grown from around 180,000 in 1968, just over 40 years ago, to around five million today. As a result, the amount of land being used for residential, commercial and industrial use has grown dramatically. The extension of the infrastructure, in the form of airports, ports and highways, has taken further toll on what was formerly natural habitat, while quarrying stone for construction has had a significant impact on much of the Hajar Mountains. In the coastal zone, the demand for new residential communities has meant that land

67 Doing Business with UAE has been reclaimed from the sea, once undisturbed islands are being developed and areas of salt-flats once subject to occasional inundation have been back-filled, with large urban communities being constructed. As a result, the UAE coastline is already significantly different from what it was a few decades ago. This process is not something new: a pattern of evolving shorelines can be traced back over thousands of years. What is new, however, is the pace of the change. Not only is an ever-larger part of the country's area affected by human development, but the rate of change is such that there is little time for species of flora and fauna to adapt or to move. Indeed, in many areas, insufficient research has been undertaken on what forms of life are actually present. Towards a Sustainable Balance The challenge to conserve the environment, however, has been accepted by Government as a major priority, with the ultimate objective being to reach a sustainable balance between environmental protection and the needs of development. The federal Ministry of Environment and Water, along with local agencies, of which the most active is the Environment Agency – Abu Dhabi (EAD), responsible for nearly four-fifths of the UAE's land area, have continued to work on proactive programmes of scientific research and the preparation and implementation of ever-tougher regulations and guidelines. Educational campaigns have been designed with the help of non-governmental organisations such as the Emirates Wildlife Society (EWS) to raise public awareness of the need to protect the environment and to reduce consumption of energy and water. At the same time, new areas of natural habitat have been given protection. In Abu Dhabi, for example, the Yasat Marine Protected Area, managed by EAD, has been enlarged to include several more islands, and now covers an area of nearly 3000 square kilometres. Nearly 20 per cent of the UAE's population of dugongs, an endangered marine mammal, live in the area. The Al Gharbia 2030 Plan, part of Abu Dhabi's vision for the future, includes several thousand square kilometres of desert as proposed nature reserves, where any future development will be tightly controlled. Another important step, following extensive study by the EWS and the Fujairah Municipality was the declaration of the country's first mountain reserve. Covering over 220 square kilometres including a large buffer zone, the Wadi Wurrayah Reserve is home to the endangered Arabian tahr, a distant relative of the goat, that is threatened with extinction in the UAE. The reserve is also home to a wide range of other fauna and flora, and, during studies leading up to the declaration of the reserve, a number of previously unknown invertebrate species were discovered.

68 Doing Business with UAE Meeting Challenges In the UAE's arid climate, one of the most pressing tasks is to conserve the limited supplies of fresh water. Although most fresh water is now provided from seawater, through desalination and power plants (see chapter on Water and Electricity), the exploitation of underground aquifers, particularly for agriculture, far exceeds any recharge that may occur as a result of scanty annual rainfall. In order to ensure that a coherent, all-embracing policy on water usage is developed, a Permanent Committee for Agriculture and Water Resources was established in Abu Dhabi in late 2009. Among its tasks are the preparation of an inventory of all water resources in the emirate, including groundwater, desalinated water and wastewater, and an assessment of future needs. It will also seek to maximise efficiency of water usage, so as to control the expansion of demand and will look at ways in which renewable energy resources can be used in the production of water. Another resource that is being over-exploited is that of the country's fish stocks. Recent surveys undertaken on behalf of EAD have shown that populations of most of the commercially important species have declined dramatically in recent years. Although tough legislation has been enacted, implementation has posed a challenge and inspections of fishing operations at sea are to be increased. One concern is that too many fish are being caught before they reach the age of maturity. One step that can be taken is to reduce the number of fishing boats. A moratorium on new fishing licences was imposed in Abu Dhabi in 2002 and, partly as a result, the number of fishing trips fell from 7300 in 2004 to 5900 in 2008. In Dubai, fishing boat owners who are too old to go to sea themselves are now able to benefit from a government scheme that pays them a salary related to the number of boats that they own, which can then be taken out of service. Another major concern, not simply in terms of its impact on the environment but also because of the effect it has on neighbouring villages, is the country's quarrying and rock-crushing industry. The rock itself is needed for the continuing construction programme,

69 Doing Business with UAE b u t t h e G o v e r n m e n t i s determined to ensure that the industry is forced to adhere to international standards in terms of pollution. A series of tough new regulations were endorsed by the Cabinet in 2008 and during 2009, the Ministry of Environment and Water, working w i t h t h e e n v i r o n m e n t a l authorities in Ra's al-Khaimah and Fujairah, where most quarr ying operations are located, undertook a campaign to enforce higher standards. Whereas in January 2009, only 63 per cent of the quarries and crushers in Ra's al-Khaimah were adhering to the new guidelines, the figure had risen to 97 per cent by August. Thirteen crushers were closed for failing to improve their performance. The Ministry also began evaluation of cement and clinker factories, and had completed a set of preliminary guidelines by the end of the year. When implemented, they are expected to reduce emissions by up to 60 per cent. Despite the pressure on the UAE's environment from development, there are encouraging signs that the country continues to be attractive to wildlife. In spring 2009, a major new breeding colony of greater flamingos was found close to Abu Dhabi's Musaffah industrial zone. Containing nearly 2000 nests, and with up to18,000 birds present, the colony is the largest ever recorded on the Arabian Peninsula, and was afforded immediate protection. Satellite tracking has shown that birds from the area migrate as far away as the Caspian Sea, underlining the necessity for conservation to adopt an international, as well as a local approach. The United Arab Emirates has worked for many years with other countries on the basis of bilateral agreements to protect particular species, such as the houbara bustard, which breeds in Central Asia but migrates to the Arabian Gulf. Following a conference in late 2008 held in Abu Dhabi, and organised by EAD in association with Britain's Department of Food, Rural Affairs and Agriculture and the Convention on Migratory Species, part of the United Nations Environment Programme, the UAE has now been chosen as the headquarters for a new international agreement on the conservation and protection of migratory species of birds of prey throughout Europe, Africa and Asia.

70 Doing Business with UAE Nature's Surprises Amidst a year of effort designed to conserve and protect the UAE's environment, the vagaries of the global climate also affected the country. As a result of good rainfall in March, an estimated 5.76 million cubic metres of water were trapped in dams in mountain areas, while December also saw heavy rainfall throughout much of the Emirates, providing a much-welcomed boost to agriculture and also recharging underground aquifers, which are being rapidly depleted as a result of rising demand for water. While the UAE usually receives some rainfall in most years, a fall of snow in late January on Jebel Jais in northern Ra's al-Khaimah, the country's highest mountain, was utterly unexpected. The snow covered an area of around 5 square kilometres to a depth of around 10 centimetres. Snow had only fallen once before in the memory of local residents, again on Jebel Jais, in 2004, although this year's snowfall, accompanied by heavy rain in low-lying areas, was much heavier. Snow is so unusual in the Emirates that there is no word for it in the local dialect. Another, less welcome, natural event was a major outbreak of 'red tide' in the northern emirates of Umm al-Qaiwain and Ra's al-Khaimah and on the UAE's east coast during the summer. Correctly known as harmful algal blooms (HABs), these involve toxic or otherwise harmful phytoplankton and can cause severe mortality among fish stocks. The outbreak lasted for several weeks, causing severe disruption to fisheries. Source: www.uaeinteract.com vvv

71 Doing Business with UAE

Exhibitions & Expo

The conference and exhibition sector is a significant contributor to the economy of the UAE and a major strand in the UAE's strategy for continued development. In addition to providing a platform for the direct promotion of trade, MICE (meetings, incentive, conferences and exhibitions) fosters economic diversity, boosts development, encourages business relationships and contributes significantly to the image of the country worldwide. Strategically, the UAE, at the crossroads of Europe, Asia and Africa, is uniquely positioned to capitalise on this sector and has built large state-of-the art exhibition and conference facilities with accompanying luxury hotels to cater to the needs of visitors and exhibitors. Recent estimates indicate that 65 per cent of the total exhibition space currently available in the GCC is situated in the UAE. When the country's sophisticated infrastructure, strong economy, secure hospitable environment and diverse leisure opportunities are taken into consideration, it is no surprise that the UAE attracts world-class exhibitions and events on a regular basis. Abu Dhabi National Exhibition Centre In 2009 the Abu Dhabi Tourism Authority (ADTA) launched the Advantage Abu Dhabi initiative with a view to promoting its MICE industry. This offers business event

72 Doing Business with UAE organisers funding and non-financial government support to bring their shows to the capital. Abu Dhabi's impressive new high-tech exhibition centre features strongly in this initiative as does the Emirates Palace Hotel, the super-luxurious, seven-star venue where many major conventions, conferences and concerts are staged. The Abu Dhabi National Exhibitions Centre (ADNEC) has 73,000 square metres of live event space. It stages over 100 live events every year and welcomes over 1.8 million people annually. ADNEC continues to upgrade its facilities and in 2009, it completed the transformation of its largest exhibition hall, the 7920-square-metre multipurpose Hall 12, into an indoor auditorium capable of seating up to 5700 spectators, significantly expanding the scope of the live events that ADNEC are capable of staging. The year 2009 also saw completion of the first phase of the Exhibition Centre marina development in time for the prestigious Abu Dhabi Yacht Show (see below). Surrounding ADNEC is the Dh8 billion (US$2.18 bn) Capital Centre development, a fully integrated community project that is considered to be a major strategic element of Abu Dhabi's 2030 vision. Capital Centre will house a new business and residential micro-city of 23 towers, including seven hotels. On completion in early 2011, Capital Centre will also feature Capital Gate, a 35-storey signature tower, the 2.3 kilometre waterfront Marina Zone; the 'Galleria', a shopping mall with restaurants, retail outlets, and cinemas; and its own monorail. ADNEC also benefits from its relationship with its subsidiary, the Abu Dhabi National Exhibition Company-owned ExCeL London, which it purchased in 2008. ExCel was named as London's 'Business Venue of the Year' for the second year running at the Visit London 2009 awards, just one of the many major industry awards acquired by ADNEC. Some of the Gulf's largest and most significant international exhibitions are held at ADNEC in Abu Dhabi, including those outlined below. ADIPEC Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), is a four- day biennial oil and gas exhibition. ADNEC's facilities have facilitated the exponential growth of the exhibition, with 1500 exhibiting companies and 37,000 industry personnel attending the 2008 event. Key

73 Doing Business with UAE attendees, including the British Prime Minister, regional ministers from throughout the Middle East region, other VIPS and dignitaries, came from 89 countries. The conference programme brought together a host of industry executives and academics, and focused on some of the important issues facing the industry. A number of companies announced high level deals during the course of the event. The next ADIPEC will take place from 1 to 4 November 2010. Environment 2009 The fifth edition of the Environment Exhibition and Conference was held at ADNEC from 19 to 21 January 2009, featuring 256 exhibitors from 28 countries and showcasing a range of water, waste and air quality management solutions. Organised in conjunction with the Environment Agency – Abu Dhabi (EAD), Environment 2009 had an exhibitor profile that included pollution treatment and recycling, energy, protection of natural and cultural resources, risk prevention and management, sustainable development, regulation, audit and consultancy, and training and education, among other areas. A conference on 'Sustainable Management for Coastal Zones' was also held in conjunction with the exhibition. Future Energy As the world's fifth largest oil producer, Abu Dhabi takes the lead in addressing global energy concerns by hosting the World Future Energy Summit (WFES), the inaugural event of which was held from 19 to 21 January 2009. The summit is a part of a major initiative to bring together the world's leading experts, innovators, scientists, and venture capitalists in the field of future energy under one umbrella. In addition, the conference explores the future of the energy industry, including alternative energy, in the Middle East.

74 Doing Business with UAE

WFES 2009 hosted world-renowned speakers including ministers, politicians, business leaders, environmentalists and experts in clean energy. In addition, 12 national country pavilions and 300 leading international exhibitors from energy, finance, green construction, government and environment sectors showcased the present and future state of alternative energy technologies. WFES 2010 was held from 18 to 21 January 2010. IDEX Officially supported by the UAE Government and coordinated with the active assistance of the UAE Armed Forces, IDEX 2009, held from 22 to 26 February, was the ninth edition of the Middle East's biennial premier defence exhibition and conference. IDEX provides a venue for the defence industry to display new technologies and equipment to prospective buyers from the growing defence markets in the Middle East, Asia and Far East. Total deals signed during the five-day event exceeded Dh18 billion. A record-breaking 897 companies from 50 countries and over 150 official delegations from around the world attended the exhibition, which spread over 108,000 gross square metres. In 2011 IDEX will again act as a gateway for manufacturers and suppliers to secure contracts within the region. ADIHEX Launched in 2003, the International Hunting and Equestrian Exhibition (ADIHEX) is a fast- growing annual event that has rapidly gained international recognition and widespread popularity. The show is dedicated to encouraging, protecting and safeguarding many of the traditional values of the Emirates as reflected in the activities that dominated life in the region: horsemanship, falconry, hunting, fishing, and the arts and crafts that support and revolve around them. The show features camel and horse auctions, saluki beauty contests, art competitions and traditional hunting activities. Visitors can purchase the latest camping, hunting, and equestrian equipment; as well as enjoy a designated heritage area dedicated to the deep-rooted traditions of Abu Dhabi and the UAE. A key focus of the event is the protection of endangered wild falcons.

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ADIHEX is organised by the Emirates Falconers' Club supported by the Abu Dhabi Authority for Culture and Heritage (ADACH) and the breeding stables of Sheikh Mansour bin Zayed Al Nahyan, amongst others. In 2009, 573 companies from 37 countries participated in the event, which ran from 30 September to 3 October 2009. Military links between the UAE and the UK, as well as the nations' mutual love of horses, was celebrated with the first performance outside Europe of the British Household Cavalry's Musical Ride. Yacht Show Abu Dhabi Yacht Show (ADYS) was launched in 2009 by ADNEC at their new marina facility to meet the needs of the Middle East yachting market. The inaugural event reported sales totalling US$200 million (Dh735 mn), confirming the growing importance of Abu Dhabi as a leading super and mega-yacht destination, and establishing ADYS as the place to view many of the world's most exclusive boats. The show is organised by Informa Yacht Group (IYG) whose portfolio includes running the Monaco Yacht Show and The Super Yacht Cup. The second edition will be held from 25 to 27 February 2010, featuring more exhibition space and format changes designed to showcase new models. Other Exhibitions at ADNEC Other significant exhibitions include MECOM 2 0 0 9 , M i d d l e E a s t I n t e r n a t i o n a l Communications Exhibition and Conference; GASTECH 2009, the leading conference and exhibition for the natural gas, LNG and LPG Industries; Abu Dhabi Medical Congress 2009; Power Generation and Water Middle East 2009; Cityscape, the international property investment and development event; International Jewellery and Watch Exhibition Abu Dhabi 2009; and the Abu Dhabi International Book Fair. For a full list of exhibitions, conferences and events visit http://www.adnec.ae./ Dubai World Trade Centre Dubai World Trade Centre (DWTC) experienced a 10 per cent increase in visitor

76 Doing Business with UAE volumes for exhibitions, conventions and conferences at its venues in 2008, with many leading shows across a range of sectors showing strong growth in the number of exhibitors and visitors. T h e D W T C v e n u e s , D u b a i International Convention and Exhibition Centre (DICEC) and Airport Expo Dubai, welcomed a total of approximately 1.1 million visitors at exhibitions, meetings, and conferences in 2008, driven by record growth in leading shows across a number of sectors that are core for the strategic development of the region, ranging from health care and construction, to travel and technology. DWTC continues to provide enabling infrastructure to support growth in the regional MICE sector, a constant and reliable revenue source for Dubai's hotel industry. The new Sheikh Saeed Halls at DWTC comprise four inter-connected halls, including the multipurpose Trade Centre Arena. This Arena, with 14-metre-high ceilings and over 9000 square metres of covered exhibition space, has the capacity to host conventions, concerts and other events for over 10,000 guests in an air- conditioned, all-weather environment. A record number of 21,823 companies from more than 80 countries exhibited in the 55 exhibitions that were hosted or organised by DWTC during the first half of 2009. The number of exhibitors was up more than 7 per cent on the same period in 2008. The number of visitors rose fractionally to 551,938 in the first half of the year from 551,056 visitors in the same period in 2008. Year after year, DWTC's success as an organiser is also evident as it successfully stages a range of important exhibitions and events. GITEX GITEX Technology Week focuses on the region's high-growth ICT and telecommunications sector. More than 3000 companies participated in the 2009 edition of the annual show, which ran from 18 to 22 October in the new Sheikh Saeed Halls. The GITEX Technology Week Global Conference attracted senior executives from some of the Middle East's business and government organisations, as well as developers from the world's leading IT companies. Microsoft launched Windows 7 PC in collaboration with HP, a week before the global launch, highlighting the importance of GITEX.

77 Doing Business with UAE Dubai Airshow Running from 15 to 19 November 2009 at the Dubai Airport Expo, the biennial Dubai Airshow is the foremost aerospace event in the Middle East and one of the three largest aerospace exhibitions in the world. The eleventh edition included displays of some of the best in military and commercial aircrafts, cargo planes, private executive jets, helicopters, and drones, including spare parts, maintenance, airport security, and engines. A total of 890 companies from 47 nations participated in the event, which also included enthralling aerial displays conducted daily throughout the airshow. The total value of deals signed during the five-day event was in the region of US$14 billion. GETEX The twenty-first edition of GETEX Dubai, the Middle East's leading education fair, took place at DICEC from 15 to 18 April 2009. This is one of the most important education-oriented exhibitions in the region and an ideal networking platform for international academic institutes and authorities specialising in the field of education and scientific research. GETEX also hosted the 2009 Global Forum on Technology and Innovation in Teaching and Leading, as well as the 2009 HRD and Training Conference. Arab Health The four-day Arab Health exhibition, which ran from 26 January to 29 January 2009, brought together manufacturers and distributors actively seeking local and regional partners to win a share of the annual market in a healthcare sector expected to continue growing at 16 per cent a year. More than 2000 exhibitors and 5000 delegates attended DICEC for the exhibition. Arabian Travel Market A stronger-than-expected exhibitor presence from a global travel and tourism industry beset by economic turmoil was evident at the sixteenth Arabian Travel Market (ATM), which was held at DICEC from 5 to 8 May 2009. The presence of 2100 exhibitors was a marginal reduction on the 2008 edition, which had broken all previous records. The show, billed as the region's premier travel and tourism showcase, brought together national tourism bodies representing six continents,

78 Doing Business with UAE including new-to-market showings from the Philippines, Vietnam, Cambodia, Romania and Nigeria as well as representation from the private sector in Ecuador, Slovenia and San Marino. Other Exhibitions at DICEC Nobel Peace Prize Winners Al Gore and Desmond Tutu were the key speakers at Leaders in Dubai Business Forum 2009, which was held at DICEC from 26 to 28 October. Former US Vice-President Gore, who served under President Clinton for eight years, headed a list of top speakers at this year's forum under the title, 'A New Beginning'. Other important exhibitions held at DICEC include CABSAT, Middle East International Motor Show, Dubai International Arabian Horse Championships, Arab Health, DUPHAT International Pharmaceuticals Conference and Exhibition. For a full list visit www.dicec.ae Expo Centre Sharjah Sharjah pioneered the region's exhibition industry in 1977 when it opened an exhibition complex in the emirate. Twenty-five years later, with an investment of Dh183.5 million (US$50 mn), the Expo Centre Sharjah was inaugurated as the centrepiece of a larger Expo City. With 128,000 square metres of floor space managed by Sharjah Chamber of Commerce and Industry (SCCI), the Expo Centre hosts regular specialised trade fairs. These include Steelfab, Middle East's largest trade show for the metal working, metal manufacturing and steel fabrication industry; the National Careers Exhibition, aimed at UAE nationals in the banking and finance sectors; the biannual Mideast Watch and Jewellery Spring and Autumn Shows; the Sharjah World Book Fair, a longstanding international book fair organised by the emirate's Department of Culture & Information; Chinese Commodities Fair, presenting the Middle East's largest trade platform for high quality Chinese products and services; Sharjah Education Show; and Conmex, the Middle East's exclusive trade show for machinery, equipment and vehicles used in the construction industry. Expo Centre Sharjah is bordered by Al Khalid Lagoon, making it an attractive option for marine events such as the highly successful Gulf Maritime Exhibition. In 2009, Expo Centre Sharjah was granted membership of UFI, the global association of the exhibition industry. For a full list of exhibitions visit http://www.expo-centre.ae/ 79 Doing Business with UAE Ra's al-Khaimah Ra's al-Khaimah has a 37,400-square-metre exhibition complex close to the active business centre of the city. Formally inaugurated in 1996, and supported by the Ra's al-Khaimah Chamber of Commerce and Industry, its calendar includes Services and Recruitment Fair, RAK Book Fair, Arabic Trading Fair, African and Asian Fair, and Ramadan Festival. Visit http://www.rakexpo.ae/ a full list of events. In an effort to increase foreign investment into the emirate, as well as boost tourism and trade, Ra's al-Khaimah investment company, Rakeen, unveiled plans for a Dh1.46 billion (US$400 mn) RAK Convention & Exhibition Centre in 2008. The innovative building will have a superior high-tech finish, using technologically advanced ceramics that have been developed by RAK Ceramics. The structure of the new exhibition centre is designed to merge with its surroundings, maintaining the majestic beauty of the sand dunes. Fujairah The Fujairah Exhibition Centre (FEC) on the east coast covers 1080 square metres of indoor floor space, an outdoor display area, exhibition halls, management offices and service utilities. It is centrally located between both the international airport and Fujairah Trade Centre on one side and the seaport and free zone on the other. Established by the Fujairah Chamber of Commerce, Industry and Agriculture, a number of internationally important exhibitions have been held at the centre since its establishment. These include Buildex, a specialised crusher and building equipment show; the Motor Show, the Fujairah International Agricultural Exhibition, Fujairah International Education and Training Exhibition and the Syrian Products Show. FEC also h o s t s s e a s o n a l f a i r s f o r t h e g e n e r a l p u b l i c . V i s i t http://www.fujairahexhibitioncenter.com/ for a full list of events. Source: www.uaeinteract.com vvv

80 Doing Business with UAE India-UAE Relations

India and United Arab Emirates (UAE) enjoy strong bonds of friendship which are founded on millennia-old cultural, religious and economic intercourse between the two regions. People-to-people contacts and barter trade between the two regions have existed for centuries. The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in 1971. Both sides have made sincere efforts to improve relationsin all fields. Bilateral Visits: India-UAE bilateral relations got impetus from time-totime with exchange of high- level visits from both sides. UAE’s President Sheikh Zayed bin Sultan Al Nahyan visited India in 1975 and 1992. In recent times, Sheikh Mohammed bin Rashid Al Maktoum, Vice President & PM of the UAE and Ruler of Dubai, visited India in March 2007. He again visited India in Mach 2010. Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan led the UAE delegation to take part in the India-UAE Joint Commission meeting at New Delhi in June 2007. His latest visit to India was on June 26-27, 2011 during which he held meetings with Hon’ble Vice President, Hon’ble PM and Hon’ble EAM. During the visit, both sides signed a MoU on holding high-level Political Consultations on a regular basis. From Indian side, President Dr. Fakhruddin Ali Ahmed visited UAE in November 1976 and Prime Minister Smt. Indira Gandhi in May 1981. In recent times, President Dr. A.P.J. Abdul Kalam paid a State visit to the UAE in October 2003. EAM Shri Pranab Mukherjee visited UAE in May 2008. Hon’ble President Smt. Pratibha Devisingh Patil paid a successful State visit to UAE in November 2010. Minister of Foreign Affairs of the UAE H.H. Sheikh Abdullah Bin Zayed Al Nahyan visited in June 2011. The Deputy Prime Minister and the Minister of the Interior, Sheikh Saif Bin Zayed Al Nahyan paid a visit to India in November 2011. Sheikha Lubna bint Khalid Al Qasimi, UAE Minister of Foreign Trade visited India in 2009 and again in January 2012 to participate in the CII partnership Summit. Sheikh Hamed Bin Zayed Al Nahyan, Managing Director of ADIA – largest Sovereign Wealth Fund in the world – visited India on 16-20 January, 2012 to promote investments. Bilateral Agreements: India and the UAE have signed a number of Agreements and MoUs from time-to-time, such as Cultural Cooperation Agreement (1975); Civil Aviation Agreement (1989); Double Taxation Avoidance Agreement (1992); Agreement to Combat Trafficking in Narcotic Drugs and Psychotropic Substances (1994); Extradition Treaty (1999); Mutual Legal Assistance Treaty in Criminal & Civil Matters (1999); Agreement on Juridical and Judicial Cooperation in Civil and Commercial Matters (1999); MoU on Defence Cooperation (2003); MoU on Manpower Sourcing in (2006) A revised MoU on Manpower Sourcing (September 2011); and MoU on Political Consultations (June 2011); Agreement on Transfer of Sentenced Persons and Agreement on Security Cooperation (November 2011). Joint Commission: The Ninth Session of the India-UAE Joint Commission Meeting (JCM) took place in New Delhi on June 5-6, 2007. The Indian delegation was led by Hon’ble EAM Shri Pranab

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Mukherjee and the UAE delegation was led by Foreign Minister Sheikh Abdullah. Both sides discussed various issues for promoting bilateral cooperation in the following fields: trade & investment; combating crime, terrorism and illicit activities; education, culture, youth & sports; health, science and technology, agriculture & environment; manpower; energy, hydro-carbons, petrochemicals; and fertilizers. Foreign Office Consultations (FOC): India-UAE Foreign Office Consultations took place on February 8-9, 2012 in New Delhi. The UAE delegation was led by the Assistant Minister for Foreign Affairs Dr. Tariq Ahmed Ibrahim Al Haidan. Indian side was led by the Secretary (East) Mr. Sanjay Singh. The two sides discussed wide range of issues including the areas of bilateral and mutual interests, regional developments in the Gulf, Middle East and South Asia and international issues. Economic & Commercial Relations: The traditionally close and friendly India-UAE bilateral relationship has evolved into a significant partnership in the economic and commercial sphere. Indians have emerged as important investors within the UAE and India as an important export destination for the UAE manufactured goods. There are more than 450 flights per week between various destinations of India and the UAE. India-UAE trade, valued at US $ 180 million per annum in the 1970s reached level of $ 67 billion during 2010-2011. For UAE, India is the largest trading partner. India's major export items to UAE are: petroleum products; precious metals; stones, gems & jewellery; minerals; food items (cereals, sugar, fruits & vegetables, tea, meat, and seafood); textiles (garments, apparel, synthetic fibre, cotton, yarn); and engineering & machinery products and chemicals. India’s major import items from UAE are: petroleum and petroleum products; precious metals; stones, gems & jewellery; minerals; chemicals; wood & wood products. India-UAE bilateral trade for the last five years

Oil Trade: UAE was the fifth largest import source of crude oil for India in 2010-11 with import of 14.20 MMT of crude oil. Investments: Total FDI from UAE to India is estimated to be US$1.8 billion. UAE is the tenth biggest

82 Doing Business with UAE i nv e s t o r i n I n d i a i n t e r m s o f F D I . UAE’sinvestments in India are concentrated mainly in five sectors: Energy (19.1%); Services (9.3%); Programming (7.8%); Construction (6.8%); and, Tourism and Hotels (5.6%). Prominent UAE companies such as DP World, EMAAR, RAK etc. have invested significantly in various sectors of the Indian economy. Several prominent private and public sector Indian companies and banks are also operating in the UAE. Defence Cooperation: Both countries have regular exchange of dialogue in the field of defence with the signing of MoU on Defence Cooperation in June 2003 and setting up of Joint Defence Cooperation Committee (JDCC). The fourth Meeting of JDCC took place at Abu Dhabi in April 2011. Potential areas of bilateral cooperation in the defence field are: production and development of defence equipment; Joint exercises of armed forces, particularly naval exercises; sharing of information on strategy and doctrines; technical cooperation in respect of Intermediate Jet Trainer etc. In recent years, bilateral Defence cooperation has been strengthened, notably in the field of defence training and supply of defence inventory, besides regular exchange programmes. There have been goodwill visits of Indian Navy ships to the UAE from time-to-time. Three Indian Naval Ships, INS Teer, INS Krishna and CGS Veera, paid a visit to the UAE ports in March 2011. UAE hosted the meeting of the ‘Indian Ocean Naval Symposium’ (IONS) at Abu Dhabi in May 2010, where India handed over the Chairmanship of the IONS to the UAE. The Indian delegation in the meeting was led by Chief of Naval Staff, Admiral Nirmal Varma. The third Naval Staff Talks between Indian and UAE Navies took place at Abu Dhabi in June 2011. The first ever India-UAE Joint Air Forces exercise took place in September 2008 at the Al-Dhafra base in Abu Dhabi. India has also been a regular participant at the biennial International Defence Exhibition (IDEX) in Abu Dhabi. Cultural Cooperation: Both countries share historic cultural ties and are making sincere efforts to cultivate regular cultural exchanges both at official and popular levels. India and UAE signed a Cultural Agreement in 1975. A bilateral Cultural Exchange Programme was signed for the period 1994-1996. UAE’s Ministry of Culture and organisations like Abu Dhabi Authority for Culture and Heritage (ADACH) have been close partners in organizing Indian cultural events such as the Indian Film Festival in November 2008, SAARC Film Festival in March 2009, and the Indian Paintings Exhibition - ‘Spectrum’ in November 2009. Affiliated institutions of ADACH, such as Ketab, Kalima, have also been assisting in translation of some prominent Indian books into Arabic. An Indian Cultural Centre was opened by ICCR in the premises of the Indian Embassy in Abu Dhabi in December 2009. The Cultural Centre has been organizing many cultural activities in the field of performing arts, seminars, India festivals, exhibitions, propagation of yoga, etc. In 2011 the Centre organized a total of 50 events including a handicraft bazaar called ‘Discover India’ in February 2011; poetry reading session by Dr. Satchidanandan, an Indian poet and Arabic Translations by Arabic poet Dr. Shihab Ghanem and a seminar on November 22-23, 2011 on ‘Arab –Indo relations through the ages in History, Art & Culture’ (with special emphasis on UAE) in collaboration with Culture & Media Centre for H.H. Sheikh Sultan Bin Zayed Al Nahyan, H.H. the President’s Representative, in which Indian, Arab and Emirati speakers participated. The centre hosted about half a dozen cultural troupes in the

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calendar year including a Sufiana qawwali group, baul troupe, Katyayani theater troupe, a bhangra and a Rajasthani dance group. Indian Community: UAE is home to an Indian expatriate community of more than 1.75 million – the largest expatriate community in the UAE. Between 15 & 20 percent of the community is made up of professionally qualified personnel, 20 percent belong to the white collar non- professionals (clerical staff, shop assistants, sales men, accountants, etc) and remainder (about 65%) belongs to the blue-collar workers. There is also a significant business community from India. The Indian community has played a major role in the economic development of the UAE. The economic boom in the UAE has created a huge demand for short-term immigrant labour and white collar non-professionals and professionals in increasing numbers are coming from India. Over the last few years, steady improvement has been witnessed in respect of grievance-redressal mechanisms for the Indian workers in the UAE. The UAE’s Ministry of Labour and the Ministry of Overseas Indian Affairs are working closely to evolve a new arrangement that would make the system of recruitment and contracting more transparent. The Indian Mission is in the process of launching projects, such as pre-Recruitment attestation, for the welfare of Indian workers. There is an Indian Community Welfare Fund (ICWF) for providing food, shelter, passage expenses etc to destitute workers/housemaids in distress. The Indian Workers Resource Centre (IWRC), with a 24- hour helpline, was inaugurated in Dubai by Hon’ble President of India, during her State Visit in November 2010. India and UAE signed a MoU in the field of Manpower Sourcing in December 2006. The revised MoU was signed during the visit of UAE Labour Minister Saqr Ghobash to India in September 2011.

Source: www.mea.gov.in vvv

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Useful Links UAE Government Portal http://www.government.ae Abu Dhabi http://www.abudhabi.ae Ajman http://www.ajman.ae Dubai http://www.dubai.ae Fujairah http://www.fujairah.ae Ra's al-Khaimah http://www.rak.ae Sharjah http://www.sharjah.ae Abu Dhabi Executive Council http://www.ecouncil.ae Abu Dhabi Customs Dept http://www.auhcustoms.gov.ae Abu Dhabi International Airport http://www.abudhabiairport.ae Abu Dhabi Municipality http://www.adm.gov.ae Abu Dhabi Media http://www.admedia.ae Abu Dhabi Police http://www.adpolice.gov.ae Abu Dhabi Ports Company http://www.adpc.ae Abu Dhabi Tourism Authority http://www.exploreabudhabi.ae Abu Dhabi Water and Electricity http://www.adwec.ae Kizad http://www.kizad.com Twofour54 http://www.twofour54.com Ajman Chamber of Commerce http://www.ajmanchamber.ae Ajman Free Zone http://www.afza.gov.ae Ajman TV http://www.ajmantv.com Al Ain Municipality www.am.abudhabi.ae/english/index.php Al Ain National Museum http://www.adach.ae/en/portal/heritage/alain.nationalmuseum.aspx Dubai Chamber of Commerce & Industry http://www.dubaichamber.com Dubai Dept of Economic Development http://www.dubaided.gov.ae Dubai Duty Free http://www.dubaidutyfree.com

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Dubai International Airport http://www.dubairport.com/en/pages/home.aspx Dubai Media City http://www.dubaimediacity.com Dubai Municipality http://www.dm.gov.ae Dubai Naturalization & Residency http://www.dnrd.gov.ae Dubai Police Headquarters http://www.dubaipolice.gov.ae Dubai Ports and Customs http://www.dxbcustoms.gov.ae Dubai Tourism & Commerce Marketing http://www.dubaitourism.ae Dubai Water & Electricity Co http://www.dewa.gov.ae Emirates Identity Authority http://www.eida.gov.ae Emirates Nuclear Energy Agency http://www.enec.gov.ae Emirates News Agency http://www.wam.ae Environment Agency – Abu Dhabi http://www.ead.ae Federal National Council http://www.almajles.gov.ae Fujairah Free Trade Zone http://www.fujairahfreezone.com Fujairah e-Government http://wwwfujairah.ae Gen. Directorate of Civil Defence http://www.gdocd.gov.ae General Civil Aviation Authority http://www.gcaa.ae General Information Authority http://www.gia.gov.ae Hamriyah Free Zone http://www.hfza.ae Higher Corporation for Specialized Economic Zones (HCSEZ) http://www.zonescorp.com Jebel Ali Free Zone http://www.jafza.ae National Media Council http://www.uaeinteract.com Ra's al-Khaimah Airport http://www.rakaairport.com Ra's al-Khaimah Free Trade Zone http://www.rakiftz.com Sharjah Airport International Free Zone http://www.saif-zone.com Sharjah Tourism http://www.sharjahtourism.ae Sharjah Chamber of Commerce http://www.sherjah.gov.ae Sharjah Customs Dept http://www.sharjahcustoms.gov.ae Sharjah International Airport http://www.shj-airport.gov.ae Sharjah Police http://www.shjpolice.gov.ae UAE State Audit Institution http://www.saiuae.gov.ae UAE University http://www.uaeu.ac.ae Zayed Foundation http://www.zayed.org.ae UAE Ministries www.uae.gov.ae Armed Forces Officers Club www.afoc.mil.ae Dubai World Trade Centre www.dwtc.com Dubai Chamber of Commerce & Industry www.dubaichamber.ae Abu Dhabi Chamber of Commerce & Industry www.adcci-uae.com Sharjah Chamber of Commerce & Industry www.sharjah.gov.ae.

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H.H Sheikh Zayed Int. Price for the Environment www.zayedprize.org.aeJuvenile Association www.jewa.org.ae Dubai Municipality www.dm.gov.ae Dubai E-Government www.dubai.ae Knowledge Village www.kv.ae Dubai Dept. of Economic Development www.dubaided.gov.ae Dubai Dev. and Investment Authority www.ddia.ae Abu Dhabi Water & Electricity Authority www.adwea.com Dubai Water & Electricity Authority www.dwea.com Abu Dhabi National Oil Company www.adnoc.com Ministry of Justice www.uae.gov.ae/moj Ministry of Education www.education.gov.ae Ministry of State for Cabinet Affairs www.uae.gov.ae/moc Ministry of Agriculture and Fisheries www.uae.gov.ae/maf Nationality and Residence Airport www.dnrd.gov.ae Ministry of Health www.moh.gov.ae Ministry of Economy and Commerce www.economy.gov.ae Ministry of Finance and Industry www.uae.gov.ae/mofi

Development Projects Dubai Health Care City www.dhcc.aeThe Palm Islands www.palmislands.comThe world's Tallest Buildng www.burjkhalifa.ae Dubai Festival City www.dubaifestivalcity.com Dubai Flower Centre www.dubaiflowercentre.com Dubai Marina www.emaar.com Jumeirah Beach Residence www.jumeirahinternational.com Dubai Investment Park www.dipark.com Dubai Sports City www.dubaisportscity.ae Jumeirah Islands www.jumeirahislands.ae

Free Zones UAE Free Zones www.uaefreezones.ae Jebel Ali Free Zone www.Jafza.co.ae Dubai Internet City www.dubaiinternetcity.com Dubai Media City www.dubaimediacity.com Dubai International Finance Centre www.difc.ae Dubai Airport Free Zone www.dafza.gov.ae Dubai Cargo Village www.dubaicargovillage.com Fujeirah Free Zone Authority www.fujeirahfreezone.com Ajman Free Zone www.fujeirahfreezone.com

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Ras Al Shaimah Free Zone www.rakstz.com Hamriyah Free Zone www.hamriyahfz.com Saadyat Free Zone Authorities (Sharja) www.saif-zone.com Tourism / Travel Leisure Time Dubai www.leisuretimedubai.com Net Tours www.nettoursdubai.com Oriant Tours www.orian-tours.uae.com UAE Hotel & Travel www.hotelstravelcomae.html Dubai Hotels www.dubaihotelstoday.com UAE Travel Guide www.uae.com UAE Hotels www.directrooms-uae.com Toursim & Holidays in the UAE www.arabian-adventures.com Rais Travel & Cargo www.alrais.com Dubai Sailing & Yachting Company www.dusail.com Air Charter International www.aircharterdubai.com Alpha Tours www.alphatoursdubai.com DNATA Dubai Cruisers www.dnatadubaicruisers.com DNATA www.dnata.com Dubai City Guide www.dubaicityguide.com Dubai Country Club www.dubaicountryclub.com Dubai Golf www.Dubaigolf.com Dubai International Seafarers Club www.seafarersdxb.org Dubai.Com www.dubai.com Dubai Net www.dubainet.com Dining in Dubai www.diningindubai.com Dubai Tourism and Commerce Marketing www.dubaitourism.co.ae Dubai Explorer www.the-explorer.com Emirates Airlines www.emirates.com Emirates Islands www.emirates-islands.com Emirates Holidays www.emirates-holidays.com Gulf Air www.gulfair.com Kanoo Travel www.kanoogroup.com Sharaf Travel www.sharaftravel.com Youth Hostels www.iyhf.org

Events Dubai Tennis Open www.dubaitennosopen.com Dubai World Cup www. dubaiworldcup.com Dubai Dessert Classic www.dubaidessertclassic.com World of Events of DNATA www.worldofevents.com

88 Doing Business with UAE Shopping Al Bustan Centre www.al-bustan.com Al Ghurair City www.alguraircity.comAl Mulla Shopping Mall www.almullaplaza.comArab Craft www.arabcraft.comBurjuman Centre www.burjuman.comDeira City Centre www.deiracitycentre.comDubai Shopping Festival www.mydstf.comDubai Shopping Network www.dubaishoppingnetwork.comKarama Centre www.bridgewaygroup.comMazaya Centre www.mazayacentre.comSpinneys Dubai www.spinneys.comTown Centre www.towncentrejumeirah.comUAE Mall www.uaemall.comWafi City www.waficity.comWafi Shoppng Centre www.wafi.com

Embassies & Consulates American Embassy www.usembabu.gov.ae Canadian Embassy www.canada.org.ae Australian Embassy www.austembuae.com UK Embassy www.britain-uae.org German Embassy www.germemb.org.ae/witschaft/e/embassy French Embassy www.ambafrance.org.aeItalian Embassy www.italian-embassy.org.uaeIndian Embassy www.indembassyuae.org Embassy of Iran www.iranembassy.org.ae Yemen Embassy & Consulate www.yemen-embassy.org.ae Consulate General of Lebanon www.lebconsd.org Consulate General of India www.cgidubai.com Embassy of Finland www.finemb-abu.com South African Embassy www.southafrican.co.ae Embassy of Sweden www.swedenabroad.com/abudhabi

Business Councils in the UAE British Business Group (BBG) www.britbiz-uae.com Netherlands Business Council (NBC) www.nbcdubai.com American Business Council www.abcdubai.com German Business Council www.gbcdubai.com Iranian Business Council www.ibcdubai.com Pakistani Business Council www.pakcgrdubai.org.ae/assn.html Indian Business Council www.cgidubai.com Swiss Business Council (SBC) www.swissbcuae.ae South African Business Group www.sagroupuae.com

89 Doing Business with UAE Newspaper & Magazines Gulf News www.gulf-news.com ITP Arabia www.itparabia.com Kaleej Times www.kaleejtimes.com PC magazine www.pcmag-mideast.com PC World Middle East www.pcworldme.com Press Release Network www.pressreleasnetwork.com The International Indian Magazine www.indian.com Update www.sids.com/update Ameinfo The Ultimate Middle East Business Information www.ameinfo.com AEConline www.aeconline.ae Sharjah National Travel & Tourist Agency www.sntta.com Sharjah City Guide www.sharjacityguide.com Abu Dhabi City Guide www.abudhabicityguide.com

Miscellenaneous Business Dubai Business Directory www.dubai-bizdirectory.com Middle East Economic Digest www.meed.com UAE Interact - UAE official website www.uaeinteract.com UAE Guide to the Country www.uae.org.ae UAE Yellow Pages Directory www.yellowpages.net.ae UAE Business Directory 1 www.hawkpages.com UAE Business Directory 2 www.uaebusinessdirectory.com UAE on the Web www.uaelink.com UAE Internet pages www.uae-pages.com UAE Internet Yellow pages www.uae-ypages.com UAE General Guide www.uae.org.ae UAE Info www.uaeolocom UAE Site links www.emirates.org

Employment/Recruitment Agencies AGN MAK Exec. Resourcing e-mail: [email protected] Clarendon Parker Middle East www.clarendonparker.com Bayt Employment Portal www.bayt.com Lobo Management Services www.personnelonline.com Nadia Recruitment Services www.nadia-me.com Morgan & Banks Middle East www.morganbankme.com BACC Middle East Executive Recruitment www.bacme.com Jobs In Dubai www.jobsindubai.com

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Gulf Job Search www.gulfjobsites.com BAC Middle East Executive Recruitment www.bacdubai.com Charterhouse partnership Middle East, Australia, Europe, Asia www.charterhouse.aeiQ Selection www.iqselection.com Jobscan Executive Search www.jobscan.ae SOS Recruitment Consultants www.sos.co.ae Grafton Recruitment www.graftonrecruitement.com Kershaw Leonard www.kershawleonard.net UAE Staffing Ltd. www.uaestaffing.com Career Jet www.careerjet.ae

Miscellenaneous Expatriate in Dubai www.expatsite.com Family in Dubai www.familyindubai.co UAE Ministry of Foreign Trade http://www.moft.gov.ae/en/default.aspx UAE Ministry of Economy http://www.economy.ae/English/pages/default.aspx UAE Federal e-government Portal http://www.government.ae/web/guest/home/en UAE Central Bank www.centralbank.ae/en/

UAE Interact Abu Dhabi Government http://www.abudhabi.ae Abu Dhabi Department of Economic Development http://www.adeconomy.ae/ Abu Dhabi Council for Economic Development http://www.adced.ae/ Abu Dhabi- Executive Affairs Authority http://eaa.abudhabi.ae/Sites/EAA/Navigation/EN/root.html? Abu Dhabi - Executive Council http://gsec.abudhabi.ae/Sites/GSEC/Navigation/EN/root.html Government of Dubai http://dubai.ae/en/pages/default.aspx Dubai Department of Economic Development http://www.dubaided.gov.ae/english/Pages/default.aspx Eye of Dubai www.eyeofdubai.com Sharjah Department of Economic Development http://www.sedd.ae/ Ras AL Khaimah Government http://www.rak.ae Ajman Government http://www.ajman.ae Fujairah Government http://www.fujairah.ae/english/ Umm Al Quwain Emirate UAE Embassy, New Delhi http://www.uaeembassy-newdelhi.com/

91 Doing Business with UAE Important Information Embassy of India in UAE Embassy of UAE in Delhi H.E. Lokesh Mysore Kapanaiah - Ambassador H.E. Mohamed Sultan Al Owais - Ambassador Embassy of India, Abu Dhabi Embassy of United Arab Emirates Plot No. 10, Sector W-59/02 Ep-12, Chandergupta Marg, Diplomatic Area, Off the Airport Road Chanakyapuri New Delhi - 110021 P.O. Box 4090, Abu Dhabi Phone: +91-11-24670830 / 26872937 / 26111111 United Arab Emirates Fax: +91-11-26877648 / 26873272 Tel: +9712 4492700 Email : [email protected] Fax: +9712 4444685 / +9712 4447768 [email protected] Email: [email protected] [email protected] [email protected] Consulate General of India in UAE Web: www.uaeembassy-newdelhi.com H. E. Sanjay Verma Consul General Consulate General of UAE in Mumbai Consulate General of india H. E. Mohmmed Yousuf Al Awadhi P.O. BOX 737, DUBAI Consul General, UNITED ARAB EMIRATES Consulate General of United Arab Emirates, Tel: +3971222/3971333 Bungalow No.7, Jolly Maker Apartment, Fax: +3970453 1, Cuffe Parade, Opp. World Trade Centre, Tlx.: 46061 CGIND EM Mumbai - 400 005. Email: [email protected] Tel: 22183021 / 66345566 / 66369541 / 66369542 Fax: 22180986 / 22181162 Email [email protected] Chamber of Commerce in UAE

Dubai Chamber of Commerce & Industry Federation of UAE Chamber P.O. Box 1457 Dubai Of Commerce, Industry & Agriculture Tel: 222 1181, 228 0000 Fax: 221 1646 CORNICHE, P.O.BOX 3014, ABU DHABI, U.A.E. e-mail: [email protected] TEL: 9712-6214144, FAX: 9712-6339210 website: www.dcci.ae Abu Dhabi Chamber of Commerce & Industry Umm Al Quwain Chamber Of Commerce & Industry P.O. Box 662 Abu Dhabi P.O.BOX 436, UMM AL-QUWAIN, U.A.E. Tel: 621 4000, Fax: 621 5867 TEL: 9716 7651111, 9716-4656915, e-mail: [email protected] FAX: 9716-4657056, 9716 -7655055 website: www.abudhabichamber.ae E-mail : [email protected] Fujairah Chamber of Commerce, Industry & Ras Al-Khaimah Chamber Of Agriculture Commerce Industry & Agriculture P.O. Box 738 Fujairah P.O.BOX 87, RAS AL-KAHIMAH, U.A.E. Tel: 222 2400, Fax: 222 1464 TEL: 9717-2351366, FAX: 9717-2333511 e-mail:[email protected], website: www.fujcci.ae E-mail: [email protected] Ajman Chamber Of Commerce & Industry Sharjah Chamber of Commerce & Industry P.O. Box No. 662, Abu Dhabi, U.A.E P.O. Box 580 Sharjah, Tel: 554 1444, Fax: 554 1119 Tel.no. 9716 7422177, Fax no: 9716 7427591 E-mail: [email protected], E-mail: [email protected] web:www.sharjah.gov.ae Website: www.ajcci.co

92 Doing Business with UAE FREE TRADE ZONE

RAK INVESTMENT AUTHORITY FREE FUJAIRAH FREE ZONES ZONE (RAKIA FZ) PO Box 1133, PO Box 31291, Ras Al Khaimah, tel +971-9-2228000, Tel +971-7-2447253, fax +971-9-2228888, Fax +971-7-2445270, E-Mail :[email protected] E-Mail :[email protected] WebSite: http://www.fujairahfreezone.com WebSite: http://www.rakinvestmentauthority.com AJMAN FREE ZONE UMM AL QUWAIN FREE ZONE (UAQ FREE ZONE) Ajman Free Zone (AFZ) – PO Box 932 Ajman, Ahmed Bin Rashid Free Zone (ABRFZ), tel +971-4-7425444 PO Box 279, Umm Al Quwain, UAE, fax +971-4-7429222 Tel +971-6-7655882 WebSite: http://www.ajmanfreezone.gov.ae Fax +971-6-7651552 E-Mail :[email protected] JEBEL ALI FREE TRADE ZONE (JAFZ), DUBAI PO Box 17000, Jebel Ali, Dubai, UAE SHARJAH AIRPORT INTERNATIONAL tel +971-4-8813000 FREE ZONE (SAIF) fax +971-4-8815554 PO Box 8000 tel +971-6-5570000 DUBAI AIRPORT FREE ZONE (DAFZ) fax +971-6-5571131 Tel: +971 -4-2995555 E-Mail :[email protected] or Fax: + 971 -4-2995500 [email protected] E-Mail :[email protected] WebSite: http://www.saif-zone.com WebSite: http://www.dafza.gov.ae http://www.dafza.ae HAMRIYAH FREE ZONE Sales office tel +971-4-2027000 PO Box 1377, Sharjah, UAE tel +971-6-5263333 RAK FREE ZONE fax +971-6-5263555 Tel: +971 7 2041100 E-Mail :[email protected] Fax: + 971 7 2271653 WebSite: http://www.hamriyahfreezone.ae E-Mail :[email protected] http://www.hamriyahfz.com WebSite: http://www.rakftz.com

Jebel Ali Free Trade Zone

93 Doing Business with UAE Important Contacts

Important numbers in Abu Dhabi Emergency Coast Guard - 996 Water and Electricity – 991, 992 Abu Dhabi Government – 800 555 Abu Dhabi Municipality – 993, 800 22220, 02-678 8888 Consumer Protection section (Department of Economic Development) – 800 8811 The Centre for Regulation of Transport by Hire Cars (TransAD) – 600 535353

Airport and flights Abu Dhabi International Airport – 02-505 5555 Flight Enquiry - 02-575 7500 Etihad Airways – 02-599 0000 and 800 48378 Weather Forecast - 02 666 7776 ext. 221

Emergency Civil Defence - 997 Coast Guard - 996 Other entities Electricity and Water – 03-763 6000, 800 9008 Dubai Foundation for Women & Children - 800 111 Municipality - 993 Electricity and Water - 991 Find hospitals in Al Ain. Dubai Municipality – 800 900, 04-221 5555 Find pharmacies in Al Ain. Public Health Department, Dubai Municipality (for

public health and consumer-safety complaints) - Airport 04-223 2323 Al Ain International Airport – 03-785 5555 Amer Service, General Directorate of Residency and

Foreigners Affairs – 800 5111 Important numbers in Dubai Dubai Rent Committee (for rent complaints against Emergency landlords including excessive rental charges) -

04-221 5555 Ask Dubai from Dubai eGovernment (for most Dubai Consumer Protection (for consumer government department's eServices & eComplaints) complaints to Consumer Rights Section at Dubai - 7000 40000 Economic Department) - 600 54 5555 UAE Consumer Protection Department (for Dubai Police consumer complaints to Dubai Office of CPD, Dubai Police call centre – 901 Ministry of Economy) - 04-295 4000 Dubai Police (non-emergency) – 04-609 6299 To book a taxi – 04-208 0808, 800 9090 Dubai Police BlackBerry (BB) Pin – 27875985

To report sexual crimes against children – Hospitals 04-266 1228 Government hospitals Al Ameen service from Dubai Police (To report Al Wasl Hospital - 04-219 3000 criminal activity or if someone is harassing you) - Dubai Hospital - 04-219 5000 800 4888 Rashid Hospital - 04-337 1323 Tourist Security – 800 4438 Al Baraha Hospital - 04-271 0000 Victim Support Programme – 800 8989 Al Maktoum Hospital – 04-222 1211 Criminal Pursuit Department – 04-288 1226 Al Amal Hospital – 04-344 4010 Wanted Persons Department – 04-266 0929

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Private hospitals Important numbers in Ajman American Hospital - 04-309 6645 Police – 06-743 9999 Welcare Hospital - 04-282 9900 Electricity - 06-748 4888 Jebel Ali Hospital - 04-884 5666 Water - 06-743 0999 Iranian Hospital - 04-344 0250 Ajman Municipality - 06-742 2331 Belhoul Speciality Hospital - 04-273 3333 Medcare Hospital - 04-407 9100 Hospitals Canadian Specialist Hospital - 04-336 4444 Khalifa Hospital - 06-743 9333 The City Hospital - 800 843 2489 Ajman Hospital - 06-742 2227 Cedars Jebel Ali Hospital - 04-881 4000 Neuro Spinal Hospital - 04-315 7887 Pharmacies Zulekha Hospital - 04-267 8866 Ajman Pharmacy - 06-744 6031 Other pharmacies in Ajman Airport and flights Dubai International Airport - 04-224 5555 Important numbers in Fujairah Dubai Airport Flight Information Voice Portal - Police – 09-222 4411 04-216 6666 Electricity - 09-222 2225 Flight Enquiry - 04-224 5777 Water – 09-222 2509 Emirates - 04-214 4444 Traffic - 09-222 9884 and 09-222 2666 Flydubai - 04-301 0800 Fujairah Municipality - 09-222 7000 Dubai Weather Forecast (from Dubai Meteorological Office at Dubai Airport) - 04-216 2218 Hospital New Fujairah Hospital - 09-224 2999 Important numbers in Sharjah Dibba Hospital – 09-244 6666 Police – 06-563 3333 GMC Hospital -09-224 4233 Najeed, Secret Contact Service from Sharjah Police - Call 800 151 or send SMS to 7999, send fax to 06- Airport 552 9000 or email to [email protected]. Fujairah International Airport – 09-222 6222 Electricity, Water, Gas - 991 Weather - MET Section of Airport – 09-205 5507 Sharjah Government – 800 80000 and 9208 3300 Sharjah Municipality – 06 562 3333 Important numbers in Umm Al Quwain Blood Bank Sharjah – 06-558 2111 Police – 06-765 6677 Child helpline – 800 700 Electricity – 06–766 5333 Delta Taxis – 06-559 8598 Water – 06 – 766 5616 Traffic - 06-767 0707 Government hospital Umm Al Quwain Municipality - 06-765 6145 New Al Qassemi Hospital – 06-538 6444 Kuwaiti Hospital – 06-524 2111 Hospitals Umm Al Quwain hospital - 06-765 6888 Private hospital Zulekha Hospital – 06-565 8866 Important numbers in Ras Al Khaimah Al Zahra Private Hospital – 06-561 9999 Police – 07-205 3000 Royal Hospital – 06-558 1515 Electricity – 07-228 8444, 07-228 7766 Central Private Hospital – 06-563 9900 Water – 07-228 3366 Traffic - 07-235 6666 Airport and flights Sharjah International Airport – 06-558 1111 Ras Al Khaimah Municipality - 07-233 2422 Flight Enquiry – 06-558 1111 Taxis – 07-235 6567 Customs – 06-558 1011 Cargo Terminal - 06-558 1127 Hospitals Airport Taxi - 06-508 1288 Saqr Hospital – 07-202 3658, 07-222 3666 Air Arabia – 06-558 0000

95 Doing Business with UAE

Saif Bin Ghabash Hospital - 07-222 3555 Higher Corporation for Specialised Economic Zones RAK Hospital – 07-222 5555, 07-207 4444 (ZonesCorp) – 800 96637 Kuwaiti Hospital – 07-233 7333 Health Authority Abu Dhabi – 800 800 Sha'am Hospital - 07-266 6465 Abu Dhabi University - 800-ADYOU (800-23968) Consumer Protection section (Department of Pharmacies Economic Development) – 800 8811 RAK Hospital Pharmacy – 07-207 4245 Etihad Airways – 800 48378 / +9712-5990000 Municipality of Abu Dhabi city – 800 22220 Airports and flights Al Ain Electricity and Water / Al Ain Distribution RAK International airport - 07-207 5000 Company – 800 9008 RAK Airways - 07-207 5000 Abu Dhabi Judicial Department – 800 2353

Toll Free numbers for Dubai Government Entities Toll Free numbers for UAE Federal Entities Dubai Police Ministry of Labour – 800 665 To report traffic offences – 800 4353 Ministry of Education – 800 51115 Al Ameen service (To report criminal activity or if Ministry of Culture Youth and Community someone is harassing you) – 800 4888; BB pin Development – 800 552255 21DDDBB0 Ministry of Health– 800 1111; BlackBerry (BB) Pin - Tourist Security Department – 800 4438 2367FDCB Victim Support Programme – 800 8989 Federal Electricity and Water Authority – 800 3392 Anti-Narcotics Department – 800 400 400 National Transport Authority – 800 682823 Traffic violations and e-payment enquiry – 800 7777 UAE Red Crescent – 800 733 Human trafficking crime control centre – 800 5005 Sheikh Zayed Housing Programme – 800 92933 Criminal Investigation Department (CID) – 800 243 Ministry of Justice – 800 333 333 Fatwa Service - 800 2422 Other entities General Authority for Pension & Social Security Roads and Transport Authority – 800 9090 (GPSSA) 800-10 from any emirate between 7.30 am Dubai Municipality – 800 4567, 800 9090 and 5 pm Dubai Health Authority – 800 342 Al Aman service from Ministry of Interior – 8002626 Department of Tourism and Commerce Marketing – Ministry of Environment and Water – 800 3050 800 7090 eDirham 800 2243 Dubai Foundation for Women & Children – 800 111 eDirham G2 800MOF (800663) or for international Amer Service, General Directorate of Residency and calls: +971 2 495 1000 Foreigners Affairs – 800 5111 General Authority of Youth and Sports Welfare 800 Dubai Customs - 800 800 80 972 and BB pin 223EDE18 The Shelters for Women and Children 800 7283 Toll Free numbers for Sharjah Government Entities Sharjah Government – 800 80000 Toll Free numbers for Abu Dhabi Government Child helpline – 800 700 Entities Sharjah Directorate of Public Works – 80086767 Abu Dhabi Tourism Authority– 800 555 Abu Dhabi Customs Administration – 800 555 Toll Free numbers Ras Al Khaimah Government Abu Dhabi Food Control Authority – 800 555 Entities Abu Dhabi Ports Company – 800 5749 RAK Properties – 800 4020 Abu Dhabi Retirement Pensions and Benefits Fund – 800 44400 Toll Free numbers for Ajman Government Entities Abu Dhabi Distribution Company – 800 2332 Ajman Municipality and Planning Department – Al Ain Distribution Company – 800 9008 800 26 National Rehabilitation Center (NRC) – 800 22522 Municipality of Abu Dhabi – 800 22220 Khalifa Fund for Enterprise Development – 800 8700

96 Doing BusinessDoing inBusiness India.... with UAE

India, the world's largest democracy is second is 26 years. Following diagram shows most populated country in the world. Since distribution of Indian population by age group. independence in 1947 the country has witnessed all-round developments and Among the major industrialized countries India particularly after the onset of economic reforms has the youngest population which forecast the in early 1990s the country has made rapid strong potential of Indian economy in the years progress in converting itself from a predominant to come. The low median age supports the fact agrarian economy to a fast developing service that India will continue to enjoy the supply of oriented economy. India is seventh largest huge workforce in the years to come. In 2010 country in terms of area and 10thlargest E&Y interviewed more than 500 business economy in terms of the size. On purchasing leaders on the potential of the Indian market. It power parity (PPP) term India is the 3rdlargest found that a large majority believes that, as economy after the USA and China. According to early as 2020, India will become a global IMF projection India is the second-fastest- leader in education, research and development growing major economy (7 per cent) after China (R&D), innovation and as a producer of high (8.2 per cent). A BRIC Report has projected value-added goods and services. India to become the world's largest economy by 2050. Democratic setup with common law, plural society with deep rooted culture of hospitality, vast natural and human resources and a burgeoning middle class of over 300 million has made India a country of strong business interest. Today the country has one of the largest reservoirs of English speaking skilled human Changing Face of the Indian Economy resource. Post reform Indian economy has consistently A large number of countries are keen to achieved higher rate of growth and there has capitalize on India growth story by. This write- been positive change in the structure of the up is prepared to provide basic information economy from primarily agriculture based to about the Indian economy and the business manufacturing and service oriented. India as a scenario. nation has been a traditional saver but in the Demographic Profile: The India Advantage last few years there has been visible change in the consumption pattern. With over 1.3 billion of population nearly 30% of Indians live in urban areas. The country is also A large number of companies have established distinguished to have over 500 million of strong their presence in India not just to capitalize on labour force. A great majority of Indian the availability of cheap labor force but also population (65%) falls in working age group for catering to the burgeoning number of (i.e. 15-64 years),the median age in the country consumers. Below graphs depict the growth in Indian economy, the structure of Indian economy and consumption patterns.

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It is evident from the above graph that how the Indian economy has been gradually moving to service based activity. Increasing urbanization and modern technology have brought about a remarkable change in lifestyle and consumption pattern of Indians.

The financial results of the listed companies indicate sales growth of 20.9%. The country also stood well on its foreign exchange reserve which was USD 304.8 billion in the FY2010-11.

Improved economic condition has led to the increase in the Income of Indian population. This has positively impacted the saving rate. Improved savings has resulted in improvement in consumption as well as investments.

Financial Market of India: A safer avenue for Investment Post reform Indian financial system has seen a tremendous change. These reforms encouraged many private and foreign banks to enter into the market, which has led to overall increase in efficiency and productivity. Indian markets potential to offer high profitability in an investor friendly regime is Indian Banking sector comprises of Public sector evident from the increase in FDI inflows in bank, Private sector bank, Foreign Banks. India.The Service sector has attracted most of Currently the sector is dominated by Public the FDI inflows in India during the previous sector banks. With stronger industrial recovery financial year followed by automobile sector and growth Private Sector Banks have 8%. performed much better in terms of ROA.

98 Doing Business with UAE Indian Capital market has made a significant segment. A growing middle-class income, rising progress over the last decades. SEBI the income level, increasing awareness about regulatory authority of Indian Capital Market insurance, higher investment and infrastructure has brought in many positive changes leading to investing has laid the strong foundation to multidimensional developments of the capital expand insurance market in India. The data of market in terms ofaccessibility, regulatory IRDA shows increase in Insurance penetration f ra m ewo r k , m a r ke t i n f ra s t r u c t u r e, (percentage of premium to GDP) over the transparency, liquidity and the types of years. The chart given below gives the growth in instruments. The three main indicators of Indian Insurance penetration and density in India. Capital market BSE 500, Sensex and Nifty has shown the upward trend after the turmoil of Investing in India: The Entry routes 2008 recession. Foreign Direct Investment (FDI): The objective of India's foreign Direct Investment (FDI) policy is to invite and encourage foreign investments in India. Since 1991 the guidelines and the regulatory process has been substantially simplified to facilitate foreign investment in India. The FDI investment in the India is classified in two groups; one the sectors in which FDI is prohibited and second in Mutual fund industry plays important role in the which FDI is permitted. For the sectors in which resource mobilization. They offer schemes FDI is permitted there are two routes of across various asset classesof equity debt and investment. The automatic route where no gold. The chart given below indicates the government approval is required, virtually all movement of Asset under management (AUM) sectors or activities except very few come under over the years. the automatic route. The other route is through prior approval from Foreign investment Promotion Board (FIPB), which is required for the investments not qualify the automatic route. Indian companies can issue equity shares, fully compulsorily & mandatorily convertible debenture (FCDs) and compulsorily mandatorily preference shares (CCPS) to the non-residents subject to pricing guideline/ The Indian insurance sector has undergone a valuation norms prescribed by FEMA. Below is major transformation over the past decade and given the table of the sectors where FDI is has evolved into considerably competitive permitted.

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Foreign Institutional Investors (FII) Percentage Sectors of FDI FII registered with SEBI are allowed to invest in India. Foreign pension funds, mutual funds, Allowed investment trusts, AMCs, Insurance or Re- Automotive Industry 100% insurance companies, nominee companies & Mining & Metal 100% incorporated/ institutional portfolio managers Oil & Gas 100% are allowed to register as FIIs. Certain limits are prescribed, no restriction to investment by FII Port 100% through offshore funds, GDRs or Euro Power 100% convertible bonds. Real Estate 100% Foreign Venture Capital Investments (FVCI) Retail & Consumer products 100% SEBI registered FVCI with specific approval Roads & Highways 100% from RBI can invest in Indian venture Capital Telecommunication 100% Undertaking (IVCU) or Indian venture Capital Fund (IVCF) or in a scheme floated by such Defense Sector 26% IVFCs, subject to VCFs should also be registered Commodity Market 26% with SEBI. FVCI can purchase equity/ equity Insurance 26% linked instruments, debt/ debt instruments, the debentures of IVCU or of VCF, through an IPO Private Banks 20% or private placement in units of schemes/ Funds set up by a VCF.

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100 Doing Business with UAE INDO-ARAB CHAMBER : SERVING INDIA & ARABIA

Geo-strategic implications of Indo-Arab economic relations are fast deepening with India's growing economic strength in the global economy, the surplus liquid situation in the Middle-East countries and inherent desire of both India and Arab countries to climb up the economic competitiveness ladder in the global context.

he Indo-Arab Chamber of Commerce & Industries has been serving both India Tand the Arab world for two and a half decades. As an IAO 9001:2008 its main objective is the promotion, development and extension of commerce, trade and industry between India and the Arab world. The chamber’s key role is assisting in the set-up of joint ventures. Other activities include the exchange of business delegations, buyer-seller meets and Mrs. Sunanda Rajendran, Executive Director of the other important trade facilitating activities Chamber being honoured for successful completion that are organized by the chamber both in of 25 years with the Chamber by H.E. S. M. Krishna India and Gulf countries. which is focused on : Expanding B e s i d e s o r g a n i z i n g s u c h oil and gas production and significant events, IACCI provides processing, both off shore and on a w e a l t h o f s e c o n d a r y s h o r e , I n t r o d u c i n g n e w information like the ‘Gulf maintenance and refurbishment Directory’, ‘Doing Business with programmes, constructing the Gulf’, ‘Country profile of GSC’ hundreds of kilometers of new nations and even ‘Make Arabic pipe lines and metering systems, Speaking Easy’ to name a few Expanding refinery and storage valuable resources. capacity, Building new petrochemical plants, Introducing enhancing recovery techniques, IACC regularly updates its members on the I m p l e m e n t i n g n e w c l e a n u p a n d trade inquiries, offers list of potential environmental programmes, Country like importers, global tenders received from the Saudi Arabia alone has US$900 billion Arab world. As a facilitator the IACCI issues estimated plan for the coming year for Certificates of origin, Organize Visit Visa various projects. India is keen for the Arab assists in identifying representatives / agents world to play an important role in in the Gulf and also provides information infrastructure investment about Oil US$ 250 related to Custom procedures and guidelines Billion Invest and others about US$ 150 billion concerning Duty drawbacks. investment is expected. According to Mrs. Sunanda Rajendran, Geo-strategic implications of Indo-Arab Executive Director of IACCI, there are major economic relations are fast deepening with development projects valued at billions of $ India's growing economic strength in the Doing Business with UAE

• There is a need to establish National Competitiveness Councils progressively in each Arab country that could directly engage with India's national manufacturing competitiveness council in Delhi. These councils can make major well researched policy recommendations to the relevant policy making bodies in both countries. These Councils jointly with the private, public and academic sectors, can assess on an annual basis, the current state of competitiveness of partnering countries and what more needs to be done by various stakeholders. • Establish an effective recourse and dispute Hon’ble Chief Minister Ashok Chavan with Chairman resolution mechanism across the Arab world to of the Chamber Mr. Sushil Jiwarajka address conflicts arising from Free Trade Agreements global economy, the surplus liquid situation in the taking shape. This mechanism is already in place in Middle-East countries and inherent desire of both India. India and Arab countries to climb up the economic • Move rapidly towards adoption of zero-tariffs or competitiveness ladder in the global context. 2-3% tariffs for industrial inputs. Economic outlook, especially in the United States , • Arab leaders must themselves develop the skills, whose current policies and account deficit is institutions to financed by the Asian compete globally. In countries, is also this process India contributing to the can play a major role dynamic Indo-Arab • There is need economic relations to establish a outlook. dedicated portal on • For the Indian Indo-Arab ventures. economy, two G u l f h a s e c o n o m i c development plans imperatives form the for the next 15 cornerstones of years, on which Indo-Arab economic work has begun. co-operation, first India too has many meeting the growing State level and H.E. Rajiv Shahare, Deputy Chief ot the Mission, energy requirements Sectoral levellong Embassy of India, Riyadh & Chairman Sushil Jiwarajka term investment i.e tapping new with Mr. Tawjari at the Riyadh Chamber of Comm. & Inds. resources and plans. Approach building oil refining infrastructure and two attracting paper to India's XI Plan (2007-2012) is under the huge petro-dollar investments, which are in preparation. As a spate of Free Trade Agreements and search for avenues for viable investments. Comprehensive Economic Cooperation Agreements • Geography and history of Indo-Arab relations and are being inked, a portal will be a valuable bridge emerging economic environment in India and Arab furthering bilateral relations. countries convey that the potential of GCC- India partnership has become much more effective than it Visit our website : www.iacci.org has ever been in the past. Therefore, a major step towards this end would be a quick conclusion of the establishment of a Free Trade Zone between GCC and India.

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