CANADA-UAE BUSINESS COUNCIL GUIDE TO DOING BUSINESS IN THE UNITED ARAB EMIRATES 1ST EDITION This document offers an overview of each federal government’s strategies and initiatives, key organizations, main women’s events & key people. This Canada-UAE Business Council Guide to Doing Business in the United Arab Emirates is intended to educate Canadians interested in conducting business in the United Arab Emirates (UAE). The Guide gives an overview of the UAE—its government structure, demographics, and economy. It presents considerations for business, including reasons to do business in the UAE, business etiquette, establishing a business, labour laws, and taxation. It also incorporates a section on Canada-UAE commercial relations to provide context for the broader bilateral business relationship. This Guide is not an exhaustive resource on every aspect of doing business in the UAE and, therefore, should only be used as a starting point for Canadian businesses exploring potential opportunities in the UAE. It is not a substitute for specific business or legal advice. Section 12 provides a list of organizations in both the UAE and Canada that can be contacted for further information and assistance. This Guide was inspired by the US-UAE Business Council Guide to Doing Business in the United Arab Emirates designed for American businesses. The Canada-UAE Business Council (CUBC) developed this Guide after reviewing dozens of other similar guides published by various trade and investment entities and law offices active in the UAE. These tools are listed in the Sources section. The CUBC has made every effort to provide information that is accurate and current. Feedback is welcome. This Guide is updated on a regular basis. Please visit the Resources page of the CUBC’s website (www.canadauaebusiness.org) for other resources such as sector profiles, studies, and market intelligence reports. Published by the Canada-UAE Business Council Head Office: 161 Bay Street, Suite 2700 TD Canada Trust Tower Toronto, ON M5J 2S1 © Canada-UAE Business Council. All rights reserved 2019. UAE FACT SHEET FOUNDED 1971 FOUNDER/1ST PRESIDENT RELIGION HIS HIGHNESS SHEIKH ZAYED OFFICIALLY ISLAM; BIN SULTAN AL NAHYAN OTHER RELIGIONS PRACTICED POLITICAL SYSTEM LANGUAGE CONSTITUTIONAL FEDERATION OFFICIALLY ARABIC; (THE MONARCH OF ABU DHABI IS THE HEAD OF STATE) ENGLISH IS WIDELY SPOKEN FEDERATION GDP SEVEN EMIRATES (ABU DHABI, DUBAI, SHARJAH, RAS AL KHAIMAH, AED 1.4 TRILLION (C$495 BILLION) FUJAIRAH, UMM AL QUWAIN, AND AJMAN) GDP PER CAPITA CAPITAL CITY AED 151,000 (C$53,391) ABU DHABI TRADE (AS % OF GDP) GEOGRAPHIC AREA 93.8% 84,000 SQUARE KM CURRENCY POPULATION UAE DIRHAM EST. 9.4 MILLION (2017) (OFFICIALLY ABBREVIATED “AED”, “DH” OR “DHS”); THE DIRHAM IS PEGGED TO THE US DOLLAR; 1 DIRHAM = 0.27 US DOLLARS EMIRATI NATIONALS EST. 11% AVERAGE TEMP. 19°C (JANUARY) WORKFORCE: TO 36°C (AUGUST) 6,330,540 PEOPLE (2016) CONTENTS Section 1 — About the Gender . 30 Canada-UAE Business Council ...............4 Youth................................31 Section 2 — President’s Message.............8 5.6 Culture & History ....................33 5.7 World Expo 2020 Dubai UAE ...........34 Section 3 — Introduction ...................10 Section 6 — Canada-UAE...................40 Section 4 — Why Do Business in the UAE? ....12 6.1 Trade...............................42 Section 5 — About the UAE .................14 6.2 Investment ..........................42 5.1 Beginnings ..........................15 6.3 Agreements & Announcements ........43 5.2 Seven Emirates ......................17 6.4 Successes ..........................44 5.3 Government .........................21 6.5 Key Sectors .........................46 5.4 Economy............................24 6.6 Visiting Entry Requirements ...........46 Top Sectors ..........................24 6.7 Travel ..............................49 Trade . .25 Investment...........................26 Section 7 — Business Etiquette .............50 Currency ............................26 7.1 Language of Business.................51 5.5 Demographics .......................29 7.2 Meeting & Greeting ...................52 Population . 29 7.3 Attire ...............................53 Diversity.............................29 Religion .............................29 7.4 Gender . .54 Language............................29 7.5 Working Hours & Holidays.............55 3 Section 8 — Establishing a Business .........56 10.3 Customs Duty ......................69 8.1 Mainland or Onshore Company .........58 10.4 Other Taxes ........................69 8.2 Free Zone Company ..................59 Section 11 — Tips . .70 8.3 Offshore Company or Commercial Agency .....................61 Section 12 — Resources....................72 Section 9 — Labour Laws...................62 Section 13 — Appendix .....................76 9.1 Emiratisation ........................63 13.1 Business Structures Comparison Chart.......................77 9.2 Visas for Foreign Workers .............64 13.2 List of UAE Free Zones Section 10 — Taxation......................66 & Designated Zones .....................78 10.1 Corporate Tax ......................67 13.3 Sources ...........................80 10.2 Value-Added Tax (VAT) ...............67 13.4 Acronyms ..........................82 SECTION 1 ABOUT THE CANADA-UAE BUSINESS COUNCIL 4 5 OUR VISION is to achieve the shared goal of The CUBC is the premier business-led enhancing economic prosperity organization facilitating greater trade for both countries. and investment between Canada and OUR ROLE the United Arab Emirates (UAE). In is to provide value to our members 2013, the foreign ministers of Canada by leveraging our high-level and the UAE announced the Canada- networks; and, to advance the bilateral relationship by serving UAE Strategic Agenda to strengthen as a meeting point for the private and energize the bilateral relationship. and public sectors to strategically The Agenda had three pillars: diversify and grow trade and investment. Prosperity, Security, and Development. The CUBC was formally established OUR MISSION in 2016 as one of the strategic is to facilitate long-term recommendations that resulted from relationships and strategic 18 months of deliberations between initiatives that will improve overall bilateral market-accessibility and business leaders from Canada and the will increase diverse trade and UAE to support the Prosperity pillar. investment opportunities. LEADERSHIP EXECUTIVE COMMITTEE BOARD MEMBERS The Honourable Jean Charest Khalifa Al Mansouri CUBC Co-Chair CEO, Abu Dhabi Securities Exchange (ADX) Partner, McCarthy Tétrault LLP Fatima Al Jaber Musabbeh Al Kaabi Chief Operating Officer, Al Jaber Group CUBC Co-Chair Otaiba Al Otaiba CEO Petroleum & Petrochemicals, Chairman, Al Otaiba Group Mubadala Investment Company Anuj Ranjan Omar Alhashmi Managing Partner, Private Equity, Middle CUBC Vice Chair East and South Asia, Brookfield Asset Executive Director Asset Management Inc. Management, Abu Dhabi Power Corporation Omar Al Muhairi Director, Government Affairs, DP World Jody Becker CUBC Vice Chair Jody Becker Senior VP Emerging Markets and CUBC Vice Chair and Senior VP, Emerging Chief Strategy Officer, EllisDon Markets and Chief Strategy Officer, EllisDon Jefferey Graham CUBC Secretary Essa Al Ghurair Senior VP, SkyPower Global Chairman, Essa Al Ghurair Investment LLC Aziz Shariff Ahmed Al Qubaisi CUBC Finance Chair Senior VP, Government Relations, Chairman, Trimark Capital Group Etihad Airways Mustafa Sahin Joe Lombard CUBC President and Global Managing Director, Metals, Hatch Executive Director 6 7 The Honourable Jean Charest Jefferey Graham CUBC Co-Chair and Partner, CUBC Secretary and Senior VP, McCarthy Tétrault LLP SkyPower Global Musabbeh Al Kaabi Graham Richardson CUBC Co-Chair and CEO Petroleum President, TAQA North Ltd. & Petrochemicals, Mubadala Saeed Al Darei Investment Company Executive VP Government Affairs and Omar Alhashmi Corporate, TAQA Global CUBC Vice Chair and Executive Director, Drew MacIntyre Asset Management, Abu Dhabi Vice Chair, Head – Global Energy, Power Power Corporation & Utilities Group, TD Securities Inc. Kerry Adler John Prato Founder, President and CEO, Deputy Chair and Executive Managing Director, SkyPower Global TD Securities Inc. Aziz Shariff CUBC Finance Chair and Chairman, Trimark Capital Group SECTION 2 PRESIDENT’S MESSAGE 8 This Guide to Doing Business in the United Arab Emirates is for Canadian businesses and organizations of any size operating in any sector. Readers will learn more about a remarkable country where Canadians are already thriving and where there is great potential for others to also succeed. The United Arab Emirates (UAE) is a market full of opportunities for Canadian goods, services, investments, and expertise. The Canada-UAE Business Council (CUBC) has developed this booklet as an overview for Canadians interested in the UAE. The Guide is part of a suite of business resources that I’d like the CUBC has created with input from our to extend a special stakeholders in both countries. I encourage you thank you to the embassies and to access those resources on our website to consulate generals for their leadership and continue to learn more about the Canada-UAE contribution to bilateral economic relations. relationship and the potential for your business. This is a particularly opportune time for As the global economy continues to shift and Canadians to consider doing business in the respond to new forces and challenges affecting UAE. Never before has Canada placed