Sovereign Corporate Services

 

About the United Arab Emirates

Background: The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the UAE. They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is not far below the GDPs of the leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed it to play a vital role in the affairs of the region.

Location: Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia.

Economy - overview: The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. At present levels of production, oil and gas reserves should last for over 100 years. Despite higher oil revenues in 1999, the government has not drawn back from the economic reforms implemented during the 1998 oil price depression. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement.

Time

Dubai is four hours ahead of Greenwich Mean Time (GMT).

 

1. Jebel Ali Free Zone
   Superbly sited midway between East and West, and a convenient stopping-off point for global trade traffic, the Jebel Ali Free Zone is an ideal world hub. Add to this Dubai's strategic location close to the Gulf entrance with easy access to the entire Arabian peninsula, and it is easy to see why so many multinational giants have chosen the Free Zone as their regional distribution centre to reach the 1.5 billion consumers in the surrounding markets.
   
   Some incentives for registering in the Jebel Ali Free Zone are 100% foreign ownership, No corporate taxes for 15 years (renewable for an additional 15 years), 100% repatriation of capital and profits, No personal income taxes, No currency restrictions etc.
   
   Once a Company has been accepted into the Free Zone, it will operate under one or more of the four different licences : Trading, Industrial, Service and National Industrial. The licences are issued by JAFZA and each is valid for the period during which the company holds a Lease from JAFZA. Licences are renewable annually while the Lease is in force.
2. SAIF - Zone
   Established adjacent to Sharjah International Airport, the Sharjah Airport International Free Zone (SAIF-Zone) represents a unique opportunity for importers and exporters utilising air or sea freight. Although operations only started on 2 September 1995, over 256 companies have already set up operations, making the SAIF-Zone the fastest growing fee zone in the region.
   
   Some of the unique advantages are 100% foreign ownership, 100% repatriation of capital and profits, No currency restrictions, No corporate or personal income taxes, 15 years lease (renewable for an additional 15 years), Low cost accommodation for an on-site work force etc.
   
   Companies can register as either a branch of a local or foreign Company. Once a Company has been accepted into the Free Zone, it will operate under one or more of the four different licences: Commercial license, General Trading license, Industrial License and Service License.
3. Bank Accounts in Dubai
   It is possible to arrange bank accounts for offshore Companies in Dubai. There is no requirement for the authorised signatories to be residents of Dubai or to be physically present for opening the account. Reference from an existing bank account would be preferable though not absolutely necessary.