UAE Balance of
Payment
United Arab Emirates
reported at 108.9 AED
Billion in 2019
averaging 57.50AED
Billion from December
1996 to 2019
Trade Barriers and Restrictions
Tariffs and non – Tariffs Barriers
Tariff
A customs duty of five per cent is
generally levied on imported
goods (a number of categories
are exempt, some agricultural
products and pharmaceuticals)
and luxury goods such as
tobacco is 50 to 70 per cent.
Non-tariff barriers
Import restrictions
Only companies in the UAE that have
the appropriate trade licence can import
products into the country. Import
controls exist for a number of products
including alcoholic beverages, pork and
pork products, medicinal substances,
printed matter such as magazines and
videos, photographic material, firearms
and fireworks.
The entry of many kinds of products has
been banned in accordance with the
local values, religious beliefs and
morals.
The following items are prohibited:
• goods manufactured in Israel
• pornographic literature.
• Special permission is required for the
import of:
• alcohol
• drugs
• firearms
• ammunition and explosives
• agricultural pesticides
• industrial alcohol-denatured
• methyl alcohol
• methylated and medicated spirits.
Product certification, labelling and
packaging
• Goods should be packed to
provide protection against
extreme heat and humidity,
storage in the open and
possible unloading into lighters.
Labels of imported goods/food need to
have the following standard information
and should be in English and Arabic:
• product and brand
• ingredients, in descending order of
proportion
• additives
• the origin of all animal fats
• net contents in metric units
• production and expiry date
• country of origin
• manufacturer's name and address
• special storage and preparation
instructions, if any.
Special certificates
• UAE health authorities require Islamic
Slaughter Certification for all shipments
of Australian food products containing
meat and poultry. An Original Slaughter
Certificate and Original Halal Products
Certificate must be issued by an
approved Halal centre in Australia.
Methods of quoting and payment
• Quotes should be in US dollars CIF or
CIFC (Incoterms 1990) and may be
requested in the form of proforma
invoices to facilitate opening of letters
of credit. The UAE Dirham is valued
at a fixed rate against the US dollar.
•
Methods of duty payment for import
shipments are as follows:
• cash or cheque
• bank receipt if customs duty has
been paid through a bank
• customs duty debit facility against
bank guarantee
• Irrevocable letters of credit are
recommended until a firm trading
relationship has been established.
Documentary requirements
• Required documents for clearance:
• valid and relevant trade license
copy
• delivery order from the shipping or
line agent
• original supplier's commercial
invoice
• certificate of origin
• packing list.
Commercial invoice
No prescribed form. Certification by
an approved authority may be
requested. The invoice must
indicate:
• country of origin
• a full description of the goods,
including net and gross weights,
unit and total value, and details of
the packing and should match the
details on the bill of lading
• name of the manufacturer.
Packing list
• A packing list is required, but there is no prescribed
format. Details to match the bill of lading
description.
Certificate of origin
• The certificate of origin must include the
name and address of the manufacturer.
Must be certified by the UAE Embassy in
Canberra and should contain the following
clause: We certify that the goods or materials
are of Australian origin. Note: Fees are
substantial.
•
At the time of clearance, in case of original
commercial invoice, if the certificate of origin
and packing list is not available, clearance
can be affected on the strength of
photocopies and a deposit, which can be
claimed back if the originals are submitted
within 60 days of filing the bill of entry.
Public health requirements
• Livestock are inspected upon arrival.
Agricultural pesticides may only be
imported by a registered importer holding a
valid import licence.
• Imports of pharmaceutical products are
subject to specific transport regulations.
• Food containing cyclamates is
prohibited from entering Abu Dhabi and
although there is no legislation
prohibiting such food from entering
Dubai, the practice is not encouraged.
Insurance
• Normal commercial practice but the
insurance company must not have any
Israeli connections.
Weights and measures
• The metric system.
UAE’s position in the IMF and WB
Membership Status: Joined: September 22, 1972
General Resources Account:
Quota
SDR
Million
%Quota
2,311.20 100.00
1,746.06
75.55
565.66
24.47
History of United Arab Emirates
( UAE)
December 2, 1971 – the UAE was formed
Trucial States
1. Abu Dhabi
2. Dubai
3. Sharjah
4. Ajman
5. Fujairah
6. Umm Al Quwain
7. Ras Al Khaimah
Influences:
European - The British ties were made with the Trucial
States which promises to protect the coast from all the
aggression by sea and to provide assistance during any
land attacks. By 1960s, Britain imperial reach was
bankrupt, and politically exhausted. In early 1968, the
British declared their intention to withdraw from the Gulf,
by the end of 1971.
FRESH BEGINNINGS:
Pearling Industry became the main economy
of coastal people. It became quite profitable
by 1907 created a period of wealth for UAE
but began deteriorated when Japanese pearl
produced in commercial quantities in the late
1920s which result to the fall of pearling
industry.
In 1960s oil was discovered in Abu Dhabi the
capital city of UAE which now account for 30% of
total UAE Gross Domestic Product. Since the
discovery of oil and gas the country has become
the the modern state with a high standard of
living.
THE FOUNDATION OF UNITED ARAB EMIRATES
Seven states were formed to form union to ensure
that the country would be recognized as an
independent sovereign state that was part of the
Arab world. Abu Dhabi was approved to be the
provincial capital. Sheikh Zayed, Abu Dhabi’s ruler
was elected as the first President, while Sheikh
Rashid, Dubai’s ruler was elected as the Vice
President.
Geography, nature, climate and topography
State Boarders:
The UAE is a small country located in the eastern part of
the Arab world, on a mostly desert stretch of land
surrounded by the Persian Gulf and the Arabian Sea. The
country shares borders with Oman and Saudi Arabia.
With a total surface area of 83,600 square kilometer
Temperature and Rainfall:
In January and February the average minimum
temperature ranges between 10 °C and 14 °C. From
December to March, it is mostly warm and sunny.
The UAE is largely an arid land with vast sand deserts, but
is also characterised by sand dunes, oases, rock
mountains, valleys, marshes and mangroves and salt
plains. The oases are mostly of date palms; most oases
are located in the emirate of Abu Dhabi
Behavior and attitude of people
Division of Labor and Gender
Schools and Universities are segregated.
Women’s participation in the labor force remains one
of the lowest in the world.
In spite of employment opportunities, most women
opt for marriage and raising children
Women do not play a significant role in politics and
religious life as these areas are considered male
domains
Emiratis are discouraged to marry non
nationals a young man receives $19,000
from Marriage Fund if he marries a national
The School system has undertaken a greater
role in children’s socialization, significantly
reducing the family’s role in this process
Markets, Trade and Environmental Issues
UAE has been the top export market in the
Middle East Africa region for 11 years and is a
regional hub for over 1,500 American companies
The UAE was on a positive trajectory before
COVID-19pandemic
driving down of oil prices
reducing income from aviation, tourism and trade
GDP fall by 4.5% in 2020
With a picking growth rate of 1.4% in 2021
Dubai World Expo 2020 is aiming to create
approximately 277,000 job opportunities but
postponed and scheduled on October 1, 2021
to March 31, 2022. This will boost the
economy which is expected to bring $33.4
billion.
UAE’s economy after 2020 will be
proven to be technology- based
rather than oil-based along with the
entire country
Environmental Threats and Issues
1.Invasive Species
2. Carbon Footprints
3. Limited water resources
4. Overfishing
5. Waste Generation
6. Land degradation and desertification
Economy
The UAE is run by a federal government and
local governments of the seven emirates.
Their powers and roles are defined by the
Constitution. Under the UAE system
of government, the President of the
Federation is elected by a body known as
the Supreme Council of Rulers. ... The Prime
Minister is appointed by the President.
UAE official currency is Emirati Dirham
(AED)
The Economy of the United Arab Emirates is the
third largest in the Middle East, with a gross
domestic product of US$421 billion in 2020
VAT of 5% has been implemented in UAE
January 1, 2018
The rising of Burj Khalifa helps to boost the Economy
Cost to build $1.5Billion
Rise January 4, 2010, and built January 4, 2004
160 storey. 2,717 ft,had made $1.43Billion net profit
in 2016
the firm had made $1.8 billion in profit and close to
$5 billion in sales in 2017.
• GDP rank -34th ( Nominal)
• GDP Growth – 1.7% ( 2018), 1.7% ( 2019),-4.5 (2020) 1.4
(2021 f)
• GDP by Sector - Agriculture .9%, Industry 49.8%, Services
49.2%
• Labor Force - 78.3 % employment rate
• Main Industries- Petroleum, petrochemicals, fishing,
aluminum, cement, fertilizer, ship repair, construction,
materials, handicrafts, textiles.
• Gross External Debt – $237.6 billion
• Public Debt – 19.7% of GDP
Resources
• Although the Emirates has one of the
most diversified economies in the GCC,
its economy is highly dependent on
petroleum and natural gas which are its
two primary natural resources. Over 90%
of these natural resources come
from Abu Dhabi. Approximately 85% of
the economy of the UAE is based on oil
export.
Major Natural Resources
• Petroleum ( Oil)
• Natural gas
• Solar Energy
Population
• The United Arab Emirates 2020
population is estimated at
9,890,402 people at mid year
according to UN data. the United
Arab Emirates population is
equivalent to 0.13% of the total
world population. the U.A.E. ranks
number 93 in the list of countries
(and dependencies) by population.
Population by Gender
UAE Population Statistics by Year (Historical population)
Year
Population
2020
9.89 million
2019
9.77 million
2018
9.54 million
2017
9.40 million
2016
9.27 million
2015
9.15 million
2014
9.07 million
2013
9 million
2012
8.90 million
2011
8.67 million
2010
8.27 million
Population Ethnic make up
Social Reponsibility and Environmental
Management
• Raising awareness on CSR values
• Launching public-private sustainable
development partnership
• Strengthening the common understanding of
social responsibility practice concept
• Stimulating companies to implement the
functioning system of social responsibility
• Organizing and directing contribution of
companies in community development
projects
Communication ( links/ Infrastracture)
The telecommunication sector is contributing around 5%
to the GDP of the UAE. It has been increasing over the
past years, it was at 4.1% 3 years ago and now it is 5.3%.
Infrastructures:
Road -The UAE’s extensive road network connects each of
the seven emirates and links major transportation hubs
and population centers facilitation trades.
Aviation – forms 28% of the GDP and contributes 22$bn
annually . Important for employment. It accounts 19%
of employment rate
Ports - for maritime activity and transportation ,
UAE has numerous port facilities catering general
cargo, container shipping and oil and gas industry
Railways - There is Etihad railway project that is bringing the
transport to entire country. Dubai metro.
Telecommunication
The UAE has a fast, efficient telecommunications
network. The Telecommunications Regulatory
Authority (TRA) is responsible for the
management of every aspect of the
telecommunications and information
technologies in the UAE.
Two telco player:
1. Etisalat ( Emirates telecommunication
Corporation
2. Du- Emirate Integrated Telecommunication
Company
Internet penetration 99.15%