FOREIGN INVESTMENTS AND INVESTMENT INCENTIVES

In Dubai

Prateek Jain Divya Kaushik Manish Solanki Surabhi Srivastav Ankur Chauhan

Made by:

Introduction
Dubai is the most populous emirate of the seven emiratesUnited Arab Emirates. It is distinct from other members of the UAE in that revenues from petroleum and natural gas account for only 6% of its gross domestic product. A majority of the emirate's revenues are from the Jebel Ali Free Zone (JAFZ) and increasingly from tourism. Currently foreign investors in Dubai and the larger UAE can hold only minority stakes in companies and must have a local partner, except for socalled "free zones" where 100 percent foreign ownership is allowed. Acording to official data, Foreign direct investment projects totaling $4.5 billion in capital spending were announced in Dubai during the first half of last year, up 7 percent from a year earlier.

Dubai among top FDI HUBS:

In recent years, the Government of the U.A.E has pursued a progressive economic agenda, focusing on economic liberalisation and diversification and promoting the role of the private sector. According to a report by the International Monetary Fund (IMF), the recent sustained growth in the UAE is due to its liberal economic policies, especially those focusing on diversification. The World Bank as well highlighted the UAEs success in reducing its dependence on oil, which would enable to mitigate risks of oil price decline. The Government continues to focus on these issues and the UAE economy is benefiting from these initiatives, becoming less dependent on oil and gas. Various sectors have already reaped the benefits of diversification, especially the service sector, tourism and real estate, and the re-export industry. The tourism sector, for instance, accounted for 22% of UAE s GDP in 2005 .

Current Scenario:
An amendment to the Companies Law to allow greater foreign ownership in certain sectors outside the free zones is currently being considered by the Government. One major reform being considered is the lifting of ceiling for foreign ownership from the current 49 % to 75 %.14 This will be an important step forward for the UAE. The ministry of economy is also considering eliminating the agency law which gives U.A.E firms monopoly rights to import foreign brands.

Foreign Investments in U.A.E

With a diverse, multicultural population, Dubai offers its residents and businesses a unique environment, enriched with the cultures of more than 190 nationalities and a quality of life and work unrivalled in the Middle East. With an indigenous population of just 170,000, the number of Dubai expatriate residents now stands at more than two million, thanks to its lifestyle appeal and investment incentives. The tax-free policies and penalty-free repatriation of earnings have enormous benefits on both a personal and business level, with outstanding opportunities for private savings and professional profits. The ever expanding marketplace of Dubai and the UAE constantly offers new incentives to potential business partners. Free Trade Agreements with traditional Arab neighbours and new global alliances have had a tremendous impact on the citys foreign trade, which in 2012 totalled AED 1.2 trillion (US$ 335 billion).

THANK YOU

Submitted by Andrew Buks & Kristin Johnson (Fall 2008)

DUBAI DUBAILAND SKI DOME

DUBAI BURJ DUBAI

DUBAI PALM AND THE WORLD

DUBAI BURJ AL-ARAB

DUBAI PAST & PRESENT

1991

2005