{"id":723,"date":"2017-12-18T12:43:14","date_gmt":"2017-12-18T12:43:14","guid":{"rendered":"http:\/\/www.goodada.com\/blog\/?p=723"},"modified":"2024-09-06T13:28:55","modified_gmt":"2024-09-06T13:28:55","slug":"how-to-sell-to-the-united-arab-emirates","status":"publish","type":"post","link":"https:\/\/www.goodada.com\/blog\/how-to-sell-to-the-united-arab-emirates\/","title":{"rendered":"Trading with the UAE? Here is useful Tips & Information"},"content":{"rendered":"

Overview of the UAE<\/strong><\/span><\/h2>\n

How to Sell to the United Arab Emirates. The late Sheikh Khalifa bin Zayed oversaw the transformation of the UAE from an oil export-dependent state into a regional and international finance and tourism player with best-in-class infrastructure and transportation networks and promoted the growth of a business-friendly environment. The United Arab Emirates operates an open economy and seeks to create job opportunities for both local and foreign nationals by improving education and increasing private-sector employment.<\/p>\n

The UAE has a population of 10.03 million, and 88% of the total population is made up of immigrants (source cia.gov<\/a><\/span>).\u00a0In 1981, the Gulf Cooperation Council (GGC) was formed. It comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.<\/p>\n

UAE\u2019s Business culture<\/strong><\/span><\/h3>\n

Quotes should be in US dollars CIF.<\/p>\n

The UAE’s currency is the AED (the Emirati Dirham). Since 1980, the AED has been pegged to the US$ at a rate of AED3.671=US$1. The authorities believe this promotes stability and confidence in the currency. Interest rates in the UAE tend to parallel those in the U.S.<\/p>\n

English is the language of choice when negotiations are conducted. If companies wish to do business with the government, it can be advantageous to have business cards in both English and Arabic.<\/p>\n

The Arab custom of small talk is vital for building trust and must not be hurried or dispensed with. In introductory business conversations, talk often centers on the health and well-being of the other person but never about wives and female relatives.<\/p>\n

Refreshments (e.g., coffee, tea) should always be accepted. Coffee is offered to guests in order of their position<\/p>\n

Refrain from expressing extreme views, which may be seen as a sign of inflexibility. Your host will rarely initiate business discussions. You will usually be expected to commence with a proposal and keep descriptions short and to the point.<\/p>\n

As with many countries, getting a \u2018yes\u2019 \u00a0means that your point is understood, but it does not necessarily confirm agreement.<\/p>\n

The dress code for men is business suits. Women should dress conservatively and avoid wearing short skirts or revealing blouses. The head does not need to be covered.<\/p>\n

The exchange of small corporate items such as pens and brochures is standard practice.<\/p>\n

Setting up in the UAE<\/strong><\/span><\/h3>\n

In most sectors, foreign firms seeking to establish themselves within the UAE market must have a local sponsor or agent and are limited to a minority ownership position.\u00a0 Finding the right local agent\/distributor can be a critical first step for success.<\/p>\n

Banking and Finance<\/strong><\/span><\/h3>\n

The UAE banking and finance sector is highly developed, with local and international banks providing a full range of services. The UAE Central Bank licenses all institutions.<\/p>\n

Banks in the UAE are divided into four broad categories: commercial, merchant or investment, Islamic, and industrial.<\/p>\n

The Dubai International Financial Centre (DIFC) was established in 2004 as an economic \u2018free zone\u2019 with its own world-class legal and regulatory framework. The DIFC offers a zero tax rate and full foreign ownership.<\/p>\n

Tariffs and Regulations<\/strong><\/span><\/h2>\n

Tariff<\/strong><\/span><\/h3>\n

Generally, imported products into the UAE carry a 5% duty.\u00a0 However, some luxury goods such as tobacco can incur a 50% to 70% levy. Some essential product categories, such as agricultural products and pharmaceuticals, are exempt.<\/p>\n

Tariffs and duty rates are constantly revised and are subject to change without notice. It is recommended to reconfirm rates before selling to the United Arab Emirates (UAE)<\/p>\n

Several UAE \u2018free zones\u2019 have been established, where customs duties are not payable, such as Dubai International Financial Centre (DIFC) or Jebel Ali Port. Goods may only be imported by an entity registered in the UAE.<\/p>\n

Non-tariff barriers – How to Sell to the United Arab Emirates<\/strong><\/span><\/h3>\n

How to Sell to the United Arab Emirates Fact – Only UAE companies with the appropriate trade license can import products into the country.<\/p>\n

ImportCountryls 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.<\/p>\n

The entry of many kinds of products has been banned by local values, religious beliefs, and morals. The following items are prohibited:<\/p>\n