https://www.gov.

uk/government/publications/overseas-business-risk-united-arabemirates/overseas-business-risk-united-arab-emirates

Overseas Business Risk - United Arab

Emirates
The UAE is the UKs largest trading partner in the Middle East and 12th
largest globally. In 2013 bilateral trade between the UAE and UK was 12.34bn.
Trade in goods (excluding services) in 2014 was 9bn. In 2015, the UAE-UK
Business Council agreed a target of 25bn in annual bilateral trade by 2020. Key
UAE sectors for UK exporters are infrastructure, energy, defence and security,
education and training, financial and professional services, and creative and
media. Our High Value Opportunities are Airports, the Experience Economy
(including Saadiyat Island), Healthcare, Education, Expo 2020 and Rail.

1. Political and Economic

The United Arab Emirates is a federation of seven emirates: Abu
Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman, Fujairah, and Umm alQaiwain. The federation was formed and became independent in 1971. HH
Sheikh Zayed bin Sultan Al Nahyan, the Emir (Ruler) of Abu Dhabi, was its
first President. He was succeeded in both roles by his son HH Sheikh
Khalifa bin Zayed al Nahyan in 2004. HH Sheikh Mohammed bin Rashid Al
Maktoum, Emir of Dubai, is Vice-President and Prime Minister of the UAE.
HH Sheikh Mohammed bin Zayed Al Nahyan is Crown Prince of Abu Dhabi.
The Federal Supreme Council (consisting of the Emirs of the seven
Emirates) and the Council of Ministers constitute the executive of the UAE
government. The President and the Vice President/Prime Minister are
chosen by the Emirs. The Federal Supreme Council ratifies legislation, and
the appointment of Ministers and Judges of the Federal Supreme Court.
The Federal National Council performs a consultative role considering
draft legislation, proposing amendments, questioning Ministers,
scrutinising the executive. It consists of 40 members drawn from across
the emirates roughly in proportion to population. Half of the members
from each emirate are appointed by its Emir. The other half are elected by
voters who are designated by the Emirs. For the last election, in 2011,
there were 129,000 designated voters.
Each emirate enjoys a considerable degree of autonomy under its own
Emir. Abu Dhabi is the largest emirate (87% of the overall land mass and
38% of the population). It is the political capital and has more than 90% of
the UAEs oil reserves. Dubai is the second largest emirate (30% of the

population). Islam is the official religion of the UAE. But the constitution
guarantees religious freedom, which is upheld. Arabic is the official
language. But English is widely used.
The UAEs population is estimated at around 9.35 million, of whom
around 15% are nationals while the rest were expatriates (including over
120,000 UK nationals).
The UAE is a member of number of multilateral organisations,
including the League of Arab States, the Gulf Cooperation Council (GCC),
the Organisation of the Islamic Conference (OIC), and the Organisation of
the Petroleum Exporting Countries (OPEC).
The UNs 2014 Human Development Report ranked UAE 40th out of 187
countries, and third among Arab countries. The UNs first survey of
happiness and satisfaction ranked UAE 13th in the world.
Women participate meaningfully in all facets of civil and political life.
In December 2012, it became compulsory to include women on the boards
of corporations and government agencies. Four of the 22 members of the
Council of Ministers are women. Eight of the 40 Federal National Council
members are women.
Investors generally see the UAE as a safe haven in the region. Credit
default swap (CDS) spreads in Abu Dhabi and Dubai have dramatically
narrowed since the beginning of 2010, signifying increasing investor
confidence.
The UAE is the second largest Arab economy and the 30th largest in
the world, with an estimated nominal GDP of $419 billion in 2014. It also
has the 19th highest GDP per capita (2013: $43,049) in the world.
Economic growth had been strong for a number of years before the global
financial crisis in 2008. In 2009, its economy shrank by almost 5%, led by
a particularly sharp fall in Dubai. But tourism, trade and the retail sector
remained buoyant and those sectors, along with the UAEs considerable
overseas investments, have driven a full economic recovery with growth
of about 5% in 2013. GDP in Helped by a freeze of basic food product
prices first implemented in May 2011, inflation was 3.1%in 2014. The IMF
forecast the UAEs GDP growth at 3.2% for 2015.
The UAE is a significant oil and natural gas producer with 6.6% of
the worlds proven oil reserves. Its reserves of oil and natural gas both
rank among the largest 10 in the world. It is estimated that they will last
about 100 years at present production rates. Oil production is around 2.8

million barrels a day (mbpd). The government intends to reach 3.5 mbpd
by 2017 through the redevelopment and expansion of existing wells, and
the development of marginal oil reserves, both onshore and offshore.
Despite the economys heavy reliance on hydrocarbons, it is still relatively
well insulated from oil price volatility, given the substantial external
reserves built up during the recent years of high oil prices.
Over the past two decades, the UAEs diversification strategy has
developed several non-oil sectors. Non-oil GDP growth reached 5.4% in
2013 (2012: 3.8 %). Non-oil sectors contribute close to 70% of GDP. While
hydrocarbons continue to provide the largest single source of income for
Abu Dhabi, Dubais hydrocarbon reserves are far more limited, and its
economy more diverse - based on a vision of Dubai as a global business,
logistics, media and leisure hub. But the Abu Dhabi Economic Vision 2030
sets a target for non-oil sectors to contribute 64% of Abu Dhabis GDP by
2030.
There are a number of sovereign UAE investors - notably the worlds
second largest sovereign wealth fund, the Abu Dhabi Investment Authority
(ADIA), whose assets are estimated at US$ 627 billion.
The UAE is a significant investor in the UK for example, the 1.5
billion London Gateway project run by DP World, which will be one of
Europes largest port and logistics complexes, and is one of the largest
foreign investments in UK infrastructure.
Some 5,000 UK-registered firms operate in the UAE. The UAE ranks 23rd
(out of 189 countries) in the World Banks Ease of Doing Business Index
2014.
UAE now ranks 12th in the World Economic Forums Global
Competitiveness Index, three ahead of the UK and ahead of 22 EU
members. It is the highest ranked economy in the Arab world and close to
achieving its goal to be one of the 10 most competitive economies. The
UAE was judged first in the world for the quality of its roads, low inflation
and the absence of organised crime. It also received favourable scores for
its stable macroeconomic environment, infrastructure, effectiveness of
government institutions, the ease of access to finance and its tax
environment. Areas with room for improvement include primary education
and research and development. Further analysis can be found in our own
UAE Competitiveness report.

2. Business and Human Rights

The UAE has acceded to six of the eight Fundamental Conventions of the International
Labour Organisation (ILO) concerned with human rights, including the Convention for the
Elimination of Forced and Compulsory Labour, and the Convention for the Abolition of
Child Labour. UAE society is multicultural, and characterized by greater tolerance and
openness than many other countries in the region and the world. A large proportion of the
expatriate population consists of migrant workers from South Asia.
In 2007, the UAE Ministry of Labour released a report on The Protection of the Rights
of Workers in the United Arab Emirates. It set out the UAEs accomplishments in worker
rights, while acknowledging the need to enhance capacity to enforce labour laws and fully
protect the rights of workers. The Council of Ministers has enacted a number of reforms to
help combat abusive labour practices. For example, workers in all labour sectors have rights
to transfer employer sponsorship; it is illegal for employers to withhold workers passports;
and mandatory employment contracts protect certain rights of domestic workers relating to
salary, accommodation, healthcare and working hours. All foreign workers have the right to
file labour-related grievances with the Ministry of Labour. The last UN Universal Periodic
Review of human rights in the UAE acknowledged the UAEs achievements in human rights,
but emphasised the need to ensure that labour laws are strongly enforced.
In 2013, the ILO voiced concerns over the sponsorship system (kafala). UAE labour
law does not give workers the right to organize and to bargain collectively. Labour law does
not apply to domestic and agricultural workers, who are consequently not covered by
regulations relating to maximum working hours, safety conditions, and other employment
standards. But since 2013 the Under Secretaries of the Gulf Cooperation Councils Ministries
of Labour have undertaken to develop a common template contract for domestic workers.

3. Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone
who is ordinarily resident in the UK, a body incorporated in the UK or a
Scottish partnership, to commit bribery anywhere in the world.
In addition, a commercial organisation carrying on a business in the
UK can be liable for the conduct of a person who is neither a UK national
nor resident in the UK nor a body incorporated or formed in the UK. In this
case it does not matter whether the acts or omissions which form part of
the offence take place in the UK or elsewhere.
According to the 2013 Transparency Internationals Corruption Perception
Index (CPI), UAE ranks 26th out of 177 countries.

The UAE ratified the United Nations Convention Against Corruption

(UNCAC) in February 2006. The UAE has not yet passed legislation to
implement UNCAC, but has prepared a draft anti-corruption law. The UAE
is not a signatory to the OECD Convention on Combating Bribery of
Foreign Public Officials in International Business Transactions.
The Federal Penal Code of 1987 is the main federal law which regulates
anti-bribery practices in the UAE. Articles 234 to 239 of the Penal Code
contain provisions which criminalise the acceptance of bribes by both
public and private sector employees, and the bribery or attempted bribery
of public sector officials. It should be noted that there is no provision in
the Federal Penal Code which makes it an offence to offer a bribe to an
employee within the private sector.
The Business Anti Corruption portal page on UAE contains relevant
information and advice, including procedures for protecting your company
from corruption.
Read information about the British Governments anti-bribery policy.

4. Terrorism Threat
Read the information provided on our Terrorism threat page FCO Travel
Advice.

5. Protective Security Advice

The Centre for the Protection of National Infrastructure also provides
protective security advice to businesses.
Read the information provided on our Protective security advice page FCO
Travel Advice.

6. Intellectual Property
As a major trading hub, the UAE is exposed to a significant trade in
counterfeit goods, particularly fast-moving consumer goods, and other
intellectual property (IP) right infringements which cover a vast array of

products and industries. However, there is an increasing focus on

protecting IP rights within the UAE, with various consultations, IP forums
and IP awareness initiatives taking place.
The UAE is a member of the World Trade Organization and, as such,
is obliged to comply with the provisions of the World Intellectual Property
Organization Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS), which sets minimum standards for the protection of IP. The
UAE is also a signatory to the main IP treaties and conventions (including
the Paris Convention, Berne Convention, Patent Cooperation Treaty and
Rome Convention).
While UAE IP laws are issued at a federal level and registered rights
cover all Emirates, each of the seven Emirates has its own jurisdiction for
enforcement.
In terms of copyright, Federal Law No. 7 of 2002 protects various types of
literary, artistic, dramatic and musical work. Registration is not required to
achieve protection, but it is possible to register works by way of an
application to the Copyright Office at the Ministry of Economy. As the UAE
is a party to the Berne Convention on the Protection of Literary and
Artistic Works, any works created by nationals of other Berne Convention
states will be recognised in the UAE.
In terms of trademarks, Federal Law No. 37 of 1992 (as amended by
Federal Law No. 8 of 2002) and its implementing regulations govern the
protection of trademarks which are registrable with the UAE Trade Mark
Office.
In terms of patents, the UAE will permit patents for new inventions
where the idea is based on scientific principles and is capable of industrial
exploitation. As well as applying to the UAE Patent Office, it is now also
possible to obtain patent protection in all Gulf Cooperation Council (GCC)
member states through the filing of a single application at the GCC Patent
Office. The UAE, as a contracting state for the Patent Cooperation Treaty,
also allows the application for patent protection simultaneously in each of
a large number of countries by way of an international patent
application.
Enforcement can take several forms (typically resulting in a fine,
with prison sentences remaining rare) and specialist legal advice is
recommended before taking action.