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United Arab Emirates United Arab Emirates 2020 1 Table of Contents Business in the United Arab Emirates ____________________________________ 4 Market Overview ______________________________________________________________ 4 Market Challenges ____________________________________________________________ 5 Market Opportunities __________________________________________________________ 5 Market Entry Strategy _________________________________________________________ 6 Leading Sectors for U.S. Exports and Investment __________________________ 7 Architecture, Construction, and Engineering (ACE) ________________________________ 7 Aerospace __________________________________________________________________ 12 Automotive _________________________________________________________________ 14 Aviation ____________________________________________________________________ 19 Conventional Power __________________________________________________________ 26 Defense ____________________________________________________________________ 30 Education __________________________________________________________________ 33 Healthcare Services __________________________________________________________ 37 Information Communication Technology (ICT) ___________________________________ 41 Nuclear Power ______________________________________________________________ 46 Oil and Gas Field Machinery and Services _______________________________________ 48 Renewable Energy ___________________________________________________________ 52 Safety & Security ____________________________________________________________ 56 Water ______________________________________________________________________ 59 Customs, Regulations and Standards ___________________________________ 62 Trade Barriers _______________________________________________________________ 62 Import Tariffs _______________________________________________________________ 63 Import Requirements and Documentation _______________________________________ 63 U.S. Export Controls _________________________________________________________ 67 Temporary Entry ____________________________________________________________ 68 Prohibited and Restricted Imports ______________________________________________ 70 Customs Regulations ________________________________________________________ 71 Standards for Trade __________________________________________________________ 72 Labeling and Marking ________________________________________________________ 75 Trade Agreements ___________________________________________________________ 77 Licensing Requirements for Professional Services ________________________________ 78 2 Selling US Products and Services ______________________________________ 79 Distribution & Sales Channels _________________________________________________ 79 eCommerce _________________________________________________________________ 88 Selling Factors and Techniques ________________________________________________ 89 Trade Financing _____________________________________________________________ 96 Protecting Intellectual Property ________________________________________________ 98 Selling to the Public Sector ___________________________________________________ 99 Business Travel ____________________________________________________ 104 Investment Climate Statement (ICS) ____________________________________ 109 Political Environment ________________________________________________ 110 Note: The global COVID-19 pandemic and worldwide economic downturn impacted the UAE, as it did every country around the world. The pandemic created an unprecedented economic crisis as oil prices declined, cutting the UAE’s oil revenues significantly, and the non-oil economy suffered from severe declines in the tourism, aviation, trade, and logistics sectors. The downturn made economic projections uncertain. Every effort has been made to use the latest data, yet much of the available data is from 2019, 2018, and recent years. Please contact our office for updates and the latest information. INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2020. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Legal Disclaimer: The US&FCS makes every reasonable effort to ensure the accuracy and completeness of the information in this Guide, a resource for U.S. businesses to use in the exercise of their business judgment. U.S. businesses should conduct their own due diligence before relying on this information. When utilizing the information provided, the U.S. business is responsible for complying with all applicable laws and regulations of the United States, including the U.S. Foreign Corrupt Practices Act (FCPA). References and links to third parties and their content are provided for the convenience of readers and are not exhaustive lists of such resources. The US&FCS is not responsible for the availability of any third-party or its content whether found on an external site or otherwise; nor does US&FCS endorse the third-parties or endorse, warrant, or guarantee the products, services, or information described or offered in any third-party content. Please be aware that when following a link to an external site, you are then subject to the privacy and security policies and protections of the new site. 3 Business in the United Arab Emirates Market Overview The United Arab Emirates (UAE) has been the top U.S. export market in the Middle East Africa region for the last 11 years and is a regional hub for over 1,500 American companies doing business throughout the Middle East, Africa, and South Asia. The UAE has a population of approximately 9.8 million, out of which about 85% are expatriates. The UAE’s dynamic economy, openness to international business, and strategic location as a gateway to the region create business opportunities and make the UAE an attractive market for U.S. exporters. The UAE was on a positive growth trajectory before the COVID-19 pandemic struck. The pandemic dealt a twin blow to the UEA’s economy, driving down oil prices and reducing the country’s oil revenues, and significantly impacting the non-oil economy dependent on aviation, tourism, and trade. As a result, real GDP is expected to fall by approximately 4.5% in 2020, before picking up to a growth rate of 1.4% in 2021, according to the World Bank. The recovery to pre-pandemic levels of economic activity is expected to be slow and gradual. National and Emirate-level governments invest heavily in economic diversification and growth. With its oil reserves and sovereign wealth funds valued at approximately $1.3 trillion, the UAE has resources to help it navigate the volatility of the oil market and other challenges. The UAE aims to expand its role as a regional trade, logistics, and tourism hub. The World Expo (Expo 2020 Dubai) was postponed due to COVID-19 and will be held in Dubai from October 1, 2021 to March 31, 2022. The U.S. Embassy is partnering with U.S. business chambers and companies to support activities at the U.S. Pavilion, and the U.S. Commercial Service is organizing a Discover America campaign to give U.S. companies an opportunity to leverage this mega event to increase U.S. exports to the region. Twenty million visitors are expected at the Expo, and there will be over 190 participating countries. The UAE is home to world-class trade events and visiting or exhibiting at a trade event can be a great way to learn about and expand in the UAE and the region. However, some trade events may be postponed or be virtual due to the COVID-19 situation. Some of the top trade events include: • ADIPEC (Energy), November 9-12, 2020. • GITEX (ICT), December 6-10, 2020. • IDEX International Defense Exhibition (Defense), February 21-25, 2021. • Arab Health (Healthcare), June 21-24, 2021 (TBC). • Dubai Air Show (Aerospace), November 14-18, 2021. While the UAE has a bright future and presents many opportunities for U.S. companies in the long term, the pandemic has dimmed prospects for growth in the short term, and the UAE market’s structural and regulatory challenges require preparation and foresight. These are covered in the sections discussing challenges and intellectual property rights as well as other chapters. Due diligence is highly recommended, as it is when doing business in any international market. And be wary of scams and frauds - we do receive frequent inquiries from U.S. companies solicited by alleged UAE investors that turn out to be scams. To summarize, the UAE offers an attractive long-term market while presenting significant near-term challenges primarily associated with fallout from the pandemic. Our team of experienced commercial specialists in Abu Dhabi and Dubai are ready to assist U.S. companies to enter and expand in this market and encourage you to take advantage of the opportunities in the region. 4 Market Challenges Note: The global COVID-19 pandemic and worldwide economic downturn impacted the UAE, as it did every country around the world. The pandemic created an unprecedented economic crisis as oil prices declined, cutting the UAE’s oil revenues significantly, and as the non-oil economy suffered from severe declines in tourism, aviation and trade and logistics sectors. The downturn made economic projections uncertain. Every effort has been made to use the latest data, yet much of the available data is from 2019, 2018, and recent years. Please contact our office for updates and the latest information. The economy of the UAE was severely impacted by the COVID-19 pandemic and responding to the health crisis and mitigating economic damage continue
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