1 DOING BUSINESS IN DUBAI 2 3 DOING BUSINESS IN DUBAI TITLE : DOING BUSINESS IN DUBAI Printing and Publishing rights of the book and subsequent editions reserved with the Publisher. PUBLISHER: Morison Menon Corporate Services P. O. Box : 125365, Dubai, UAE Tel: +971 4 336 7000 Fax: +971 4 337 2525 Email : [email protected] © All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission in writing from the Publisher. DISCLAIMER: While every effort has been taken by the Publisher to avoid errors or omissions in this publication, any mistake or omission is not intended. The information given is liable to change without notice. It should be taken note of that neither the Publisher nor the Publishing team, will be responsible for any damage or loss, or any other consequences whatsoever, of any decision/investment/business set up etc. done based on the contents of this book. Language : English Number of Pages : 142 Number of copies printed : 30,000 Series : Fifth Edition - Year 2013 Month of Publication : January 2013 The book is not for sale. The book is distributed complimentary by the Publisher and by other entities with the prior consent of the Publisher. DESIGN : IPIX Solutions Pvt. Ltd. (A group entity of Morison Menon) Calicut, Kerala, India. Email: [email protected] www.ipixsolutions.com 4 HH Sheikh Khalifa Bin Zayed Al Nahyan President of the United Arab Emirates and the Ruler of Abu Dhabi HH Sheikh Mohammed Bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates and the Ruler of Dubai HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Crown Prince of Dubai and Chairman of the Dubai Executive Council 5 DOING BUSINESS IN DUBAI 6 FOREWORD His Highness Sheikh Ahmed Bin Saeed Al Maktoum President of Dubai Civil Aviation Authority Chairman and CEO of the Emirates Airline and Group Chairman of Dubai Supreme Fiscal Committee With Dubai achieving so many momentous milestones in the past decade alone, writing a foreword to a book about ‘Doing Business in Dubai’ is anything but easy. The vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, to always think beyond the present and ensure that Dubai stays ahead in creating world-class business environment for the people of the UAE and foreign investors, has few parallels in contemporary history. The popularity of Dubai as the region’s best and the world’s emerging global business hub has empowered the Emirate to create unique economic opportunities and value propositions that attract the best of global entrepreneurial and business leadership. Dubai government’s strong commitment to free market economy, fair competition and economic diversification are unparalleled in the region and compare with the best globally. It gives me great satisfaction to see that Dubai has developed economic sectors as diverse as aviation, tourism, logistics, trade, health, education, technology, and media among others. In 2011, trade, tourism, aviation, logistics and transportation already constituted up to 60 percent of Dubai’s total GDP. Thousands of international business entities are either headquartered in Dubai or have a major presence here, demonstrating the global credibility of the city, which is a second home to the hundreds of thousands of people from more than 200 countries who live and work here harmoniously. ‘Doing Business in Dubai’, published by Morison Menon, a global business consulting firm with a presence here since 1994, provides a glimpse of the vision which led to the transformation of Dubai and continues to shape its future, as well as an insight into the details of doing business and living in this dynamic city. The book also captures the essence of Dubai Strategic Plan 2015, explaining trade regulations and entry strategy for foreign investors, covering the financial sector, banks, and laws on holding property, as well as the role of government departments and judiciary. Importantly, for the thousands of tourists and prospective residents that flock to Dubai each year, the book provides information on opportunities in the tourism sector and the lifestyle that Dubai offers. ‘Doing Business in Dubai’ is a welcome addition to books on the subject and will benefit local and overseas investors in their business endeavours in Dubai. I wish Morison Menon and its team great success with the book. 7 DOING BUSINESS IN DUBAI 8 MESSAGE His Excellency Mohammed Ibrahim Al Shaibani Director General of His Highness The Ruler’s Court - Dubai Executive Director & CEO – Investment Corporation of Dubai The business opportunity that Dubai offers to established franchises as well as startup ventures is amazing and unrivalled. Businesses from all over the globe are racing to setup presence in Dubai as a part of their vision to operate in a highly lucrative environment. The transformation of Dubai from being dependent on handful of business sectors to multi sector economy with each sector competing to outdo its rivals would not have been possible, but for the grand vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, supported ably by setting up of advanced infrastructure and transparent corporate governance. The Investment Corporation of Dubai, the government’s investment vehicle, has been playing a significant role in growth of Dubai through strategic investments in the areas of utilities, energy, transportation, industrial, real estate, hotel and leisure and assisting in realizing the vision of Dubai. I am happy to know that Morison Menon has done detailed research to distill the rules and regulations and all other relevant aspects that would help any prospective global investor to establish business in Dubai and thus arrived at this new handbook titled ‘Doing Business in Dubai’. I hope this book helps the business community at large in getting required information about Doing Business in Dubai and adds as a catalyst to attract new investors. 9 DOING BUSINESS IN DUBAI 10 MESSAGE His Excellency Sami Al Qamzi Director General Dubai Department of Economic Development Globally, trade and economic activity are now moving towards destinations capable of energising and sustaining growth. Dubai in particular has become a destination of choice for investors and businesses looking to establish their presence in the GCC, eventually expanding further into the fast-growing markets in the Middle East, North Africa and South Asia. The Government of Dubai has made it a key element of its development strategy to enhance the benefits of doing business in Dubai. All infrastructure and policy initiatives in Dubai today are guided by the objective of positioning Dubai as the most competitive hub for business and investment as envisioned in the Dubai Strategic Plan 2015. The Department of Economic Development (DED) is committed to remain a key driver of economic activity and create an environment for sustainable economic development and prosperity for Dubai and the UAE in line with the Dubai Strategic Plan 2015. Providing efficient services to local and international investors in identifying opportunities and supporting growth across key sectors is an integral component of our commitment. The Department works on various fronts, in partnership with other government agencies and the private sector, to ensure that business processes are streamlined and concerns of the business community are duly addressed. DED licences and regulates business activities in Dubai, promotes consumer rights and fair trade practices, and encourages businesses to embrace best practices in quality, excellence and human development. We believe that the focus areas we have identified and our efforts to further improve existing processes are critical to enhancing Dubai’s global ranking in competitiveness and the ease of doing business. DED is also eager to share information and knowledge on policies and practices relating to doing business in Dubai, wherever required. Morison Menon is doing an excellent service by publishing the handbook on ‘Doing business in Dubai,’ which should help investors to get a glimpse of all the required information they need to know. I wish them all the best in this endeavour. 11 DOING BUSINESS IN DUBAI 12 PREFACE CA. Raju Menon Chairman & Managing Partner Morison Menon Morison Menon is pleased to launch the fifth edition of ‘Doing Business in Dubai’. My team takes great satisfaction in bringing this revised and updated version of the book, ‘Doing Business in Dubai’. Dubai ‘the most happening city’ in the 21st century continues its march forward by setting global benchmarks in social and economic spheres for others to emulate. The truly amazing business friendly schemes initiated by our visionary Ruler HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and the Ruler of Dubai, have put Dubai at a very high pedestal amongst the global business community and the results have been spectacular. Whether it is the global corporations or the brick and mortar type, leading banks and financial institutions or the new age information technology giants, all have chosen Dubai as the preferred destination not only for doing business in the Middle East but also as a gateway between the west and the east. Dubai has in it all that