RESTRICTED  
  
WT/TPR/S/423  
15 February 2022  
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Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
UNITED ARAB EMIRATES  
This report, prepared for the fourth Trade Policy Review of the United Arab Emirates, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the United Arab Emirates on 
its trade policies and practi ces. 
 
Any technical questions arising from this report may be addressed to Mark Koulen 
(tel. 022 739 5224), Mombert Hoppe (tel. 022 739 6098),  and Martha Lara (tel. 022 739 6033) . 
 
Document WT/TPR/G/423 contains the policy statement submitted by the United  Arab Emirates.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the United Arab Emirates. This report 
was drafted in English.  
  WT/TPR/S/ 423 • United Arab Emirates  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  12 
1.1   Main Features of the Economy  ................................ ................................ ....................  12 
1.2   Recent Economic Developments  ................................ ................................ ..................  15 
1.2.1    Fiscal policy  ................................ ................................ ................................ ...........  16 
1.2.2    Monetary and exchange rate policy  ................................ ................................ ...........  18 
1.3   Balance of Payments  ................................ ................................ ................................ .. 19 
1.4   Developments in Trade and Investment  ................................ ................................ ....... 21 
1.4.1    Trends and patterns in merchandise and services trade  ................................ ...............  21 
1.4.2    Trends and patterns in FDI  ................................ ................................ ......................  25 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  27 
2.1   General Framework  ................................ ................................ ................................ ... 27 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ....... 30 
2.3   Trade Agreements and Arrangements  ................................ ................................ ..........  31 
2.3.1    World Trade Organization (WTO)  ................................ ................................ ..............  31 
2.3.2    Regional and preferential agreements  ................................ ................................ ....... 34 
2.3.2.1    Gulf Cooperation Council (GCC)  ................................ ................................ .............  34 
2.3.2.2    GCC-Singapore Free Trade Agreement (GSFTA)  ................................ .......................  35 
2.3.2.3    GCC-EFTA Free Trade Agreement  ................................ ................................ ...........  35 
2.3.2.4    Pan-Arab Free Trade Area (PAFTA)  ................................ ................................ .........  36 
2.3.3    Other agreements and arrangements  ................................ ................................ ........  36 
2.4   Investment Regime  ................................ ................................ ................................ ... 37 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  43 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............  43 
3.1.1    Customs procedures, valuation, and requirements  ................................ ......................  43 
3.1.2    Rules of origin  ................................ ................................ ................................ ........  46 
3.1.3    Tariffs  ................................ ................................ ................................ ...................  46 
3.1.4    Other charges affecting imports  ................................ ................................ ................  49 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ...........................  50 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ...............  51 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  52 
3.2.1    Customs procedures and requirements  ................................ ................................ ...... 52 
3.2.2    Taxes, charges, and levies  ................................ ................................ .......................  52 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................  53 
3.2.4    Export support and promotion  ................................ ................................ ..................  53 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ . 54 
3.3   Measures Affecting Production and Trade  ................................ ................................ ...... 54 
3.3.1    Incentives and free zones  ................................ ................................ ........................  54 WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.3.2    Standards and other technical requirements  ................................ ..............................  56 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ... 59 
3.3.4    Competition policy and price controls  ................................ ................................ ........  61 
3.3.4.1    Competition policy  ................................ ................................ ...............................  61 
3.3.4.2    Price controls ................................ ................................ ................................ ....... 64 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............  65 
3.3.6    Government procurement  ................................ ................................ ........................  67 
3.3.6.1    Procurement at the federal level  ................................ ................................ ............  67 
3.3.6.2    Procurement at the emirate level  ................................ ................................ ...........  70 
3.3.6.3    Special procurement regimes  ................................ ................................ ................  72 
3.3.7    Intellectual property rights  ................................ ................................ .......................  73 
3.3.7.1    Overview  ................................ ................................ ................................ ............  73 
3.3.7.2    Patents  ................................ ................................ ................................ ...............  74 
3.3.7.3    Copyrights and related rights  ................................ ................................ ................  75 
3.3.7.4    Trademarks  ................................ ................................ ................................ .........  76 
3.3.7.5    Plant variety protection  ................................ ................................ .........................  77 
3.3.7.6    Enforcement  ................................ ................................ ................................ ........  77 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  79 
4.1   Agriculture and Fisheries  ................................ ................................ ............................  79 
4.1.1    Overview  ................................ ................................ ................................ ...............  79 
4.1.2    Trade  ................................ ................................ ................................ ....................  80 
4.1.3    Policies  ................................ ................................ ................................ ..................  83 
4.1.3.1    Relevant authorities for regulation and support  ................................ ........................  83 
4.1.3.2    WTO notifications  ................................ ................................ ................................ . 84 
4.1.3.3    Access to the agriculture sector  ................................ ................................ .............  84 
4.1.3.4    Policies and plans adopted since the last Review  ................................ ......................  84 
4.1.4    Fisheries  ................................ ................................ ................................ ................  86 
4.1.4.1    Trade  ................................ ................................ ................................ .................  87 
4.1.4.2    Recent policies  ................................ ................................ ................................ .... 87 
4.2   Mining and Energy  ................................ ................................ ................................ ..... 88 
4.2.1    General  ................................ ................................ ................................ .................  88 
4.2.2    Oil and gas  ................................ ................................ ................................ ............  90 
4.2.2.1    Overview ................................ ................................ ................................ ............  90 
4.2.2.2    Regulation  ................................ ................................ ................................ ..........  92 
4.2.3    Electricity and water  ................................ ................................ ...............................  94 
4.3   Services  ................................ ................................ ................................ ...................  97 
4.3.1    Financial services  ................................ ................................ ................................ .... 97 
4.3.1. 1   Banking  ................................ ................................ ................................ ..............  97 
4.3.1.2    Insurance  ................................ ................................ ................................ ..........  104 
4.3.1.3    Capital markets  ................................ ................................ ................................ .. 106 WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.3.2    Construction services  ................................ ................................ .............................  108 
4.3.3    Telecommunications services  ................................ ................................ ..................  110 
4.3.3.1    Structure  ................................ ................................ ................................ ...........  110 
4.3.3.2    Regulatory framework and changes  ................................ ................................ ....... 111 
4.3.3.3    Introduction of 5G technology  ................................ ................................ ..............  113 
4.3.3.4    Other policies affecting telecommunications and postal services  ................................  113 
4.3.3.5    E-commerce  ................................ ................................ ................................ ....... 114 
4.3.4    Transport  ................................ ................................ ................................ ..............  115 
4.3.4.1    Air transport  ................................ ................................ ................................ ....... 116 
4.3.4.2    Maritime transport  ................................ ................................ ..............................  120 
4.3.4.3    Land transport  ................................ ................................ ................................ .... 123 
4.3.5    Medical services  ................................ ................................ ................................ .... 123 
5   APPE NDIX TABLES  ................................ ................................ ................................ .. 126  
 
CHARTS  
 
Chart 1.1 GDP by economic activity (at 2010 constant prices), 2016 and 2020  .........................  13 
Chart 1.2 Production composition of merchandise trade by HS section, 2016 and 2020 ..............  22 
Chart 1.3 Direction of merchandise trade, 2016 and 2020  ................................ ......................  25 
Chart 3.1 Tariffs under preferential agreements, 2021  ................................ ...........................  49 
 
TABLES  
 
Table 1.1 Selected economic indicators, 2016 -20 ................................ ................................ .. 14 
Table 1.2 Public finances, 2016 -20 ................................ ................................ ......................  16 
Table 1.3 Balance of payments, 2016 -20 ................................ ................................ .............  20 
Table 1.4 FDI flows, 2016 -20 ................................ ................................ .............................  26 
Table 2.1 Changes made to the structure of the UAE Government in July 2020  .........................  28 
Table 2.2 Notifications to the WTO, July 2015 -October 2021  ................................ ..................  33 
Table 2.3 Use of GSP preferences, 2020  ................................ ................................ ..............  37 
Table 3.1 Trade facilitation indicators, 2019 -20................................ ................................ ..... 45 
Table 3.2 Structure of MFN tariff in the UAE  ................................ ................................ .........  47 
Table 3.3 UAE's applied MFN tariff summary, 2021  ................................ ................................  47 
Table 3.4 Prohibited goods  ................................ ................................ ................................ . 50 
Table 3.5 Restricted goods  ................................ ................................ ................................ . 51 
Table 3.6 Fines for violations of the Competition Law  ................................ .............................  63 
Table 3.7 Government expenditure on goods and services  ................................ .....................  67 
Table 3.8  Selected procurement methods and criteria  ................................ ............................  69 
Table 3.9  Public procurement thresholds for approval  ................................ ............................  69 
Table 3.10  Public procurement authorities and regulations at the emirate level  .........................  71 WT/TPR/S/ 423 • United Arab Emirates  
 
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  Table 3.11 Trademark registrations and applications in the UAE, 2016 -20 ................................  77 
Table 4.1 Agriculture production and value by types of crops for 2016 -20 ................................  79 
Table 4.2 Imports of agricultural and fish products and major partners, 2016 -20 ......................  80 
Table 4.3 Exports (including re -exports) of agricultural and fish products and major partners, 
2016-20 ................................ ................................ ................................ ..........................  81 
Table 4.4 Trade of fish products and major partners, 2016 -20 ................................ ................  87 
Table 4.5 Banking sector 2016 -20 ................................ ................................ .......................  98 
Table 4.6 Bank credit by economic activity, 2016, 2018, and 2020  ................................ ..........  99 
Table 4.7 Telecommunications indicators, 2015 -20 ................................ ..............................  110 
Table 4.8 Pricing data for mobile telephony, 2020  ................................ ................................  111 
Table 4.9 Pricing data for fixed broadband, 2020  ................................ ................................ . 111 
Table 4.10 Selected UAE ports TEU capacity  ................................ ................................ ........  122 
 
BOXES  
 
Box 2.1 Functions of the National Committee  ................................ ................................ ....... 32 
Box 2.2 National Action Agenda for Foreign Direct Investment  ................................ ................  38 
 
APPENDIX TABLES  
 
Table A1.1 Non -oil merchandise exports including re -exports by HS section and major HS 
chapter and subheading, 2016 -20 ................................ ................................ ......................  126 
Table A1.2 Non -oil merchandise domestic exports by HS section and major HS chapter and 
subheading, 2016 -20 ................................ ................................ ................................ ....... 127 
Table A1.3 Merchandise imports by HS section and major HS chapter and subheading,  
2016-20 ................................ ................................ ................................ .........................  128 
Table A1.4 Non -oil merchandise exports (incl. re -exports) by destination, 2016 -20 ..................  129 
Table A1.5 Non -oil domestic merchandise exports by destination, 2016 -20 .............................  130 
Table A1.6 Merchandise imp orts by origin, 2016 -20 ................................ .............................  131 
Table A3. 1 Tariff line where applied rate exceeds bound tariff rate  ................................ ........  132 
Table A4. 1 List of open skies and other ASA arrangements ................................ ...................  133 
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  SUMMARY  
1. The United Arab Emirates (UAE) is a federation of seven Emirates: Abu Dhabi, Ajman, Dubai, 
Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. Responsibility for policy, laws, and 
administration is shared among the federal authorities and the individual Emirates. Together, 
Abu Dhabi and Dubai account for over 85% of the country's gross domestic product (GDP). The oil 
and gas sector accounts for around 30% of the UAE's GDP, 41% of public revenues, and 26% of 
merchandise exports, excluding re -exports.  Thus,  economic diversification remains a priority of 
government policy.  
2. Immigrants represent over 87% of the total population, and the economy is highly reliant on 
foreign workers. The authorities implemented several plans during the period under review to attr act 
and retain highly skilled foreigners, such as by granting long -term golden residence visas or 
citizenship to selected investors, highly skilled professionals, or important cultural figures.  
3. Between 2016 and 2019, real GDP growth ranged between 1.2% and  3.4%, mainly led by the 
non-oil sector. GDP contracted by 6.1% in 2020, due to the impact of the COVID -19 pandemic. 
Exports of hydrocarbons decreased by 36% in 2020, as global demand fell. In 2020, the UAE 
recorded negative inflation of 2.1%. To mitigate the pandemic's economic impact, the authorities 
applied fiscal and monetary stimulus measures, both at the federal and emirate levels. Real GDP 
growth is expected to reach 2.1% in 2021.  
4. The fiscal balance, which was in surplus in 2018 and 2019, slipped to a 2.5% deficit in 2020 
because of the impact of the COVID -19 pandemic. The 2021 federal budget was the first since 2015 
to forecast a deficit. Each Emirate has its own budget. The Central Bank projected in its 2020 Annual 
Report a full recovery of the econ omy in 2022, thanks in part to fiscal stimulus. In October 2021, 
the UAE issued its first federal government bonds, following the implementation of the 2018 Public 
Debt Law.  
5. The UAE dirham has been pegged to the US dollar since 1997. The Central Bank's mai n 
objectives as per Article 4 of the new Federal Law No. 14 of 2018 are to "maintain the stability of 
the national Currency within the framework of the monetary system", "contribute to the promotion 
and protection of the stability of the financial system i n the State", and "ensure prudent management 
of the Central Bank's Foreign Reserves".  
6. The trade balance remained in surplus over the period under review. Exports of 
non-hydrocarbons, which traditionally surpass exports of hydrocarbons, remained relatively stable 
in 2020 despite the disruption of global trade. Precious stones and metals and pearls continue to be 
the main drivers of non -oil merchandise exports, followed by machinery and electrical equipment. 
Considering the importance of trade in precious sto nes and metals to the UAE economy, the 
Government implemented several initiatives to improve gold trade. Apart from the consistently 
positive trade balance, the evolution of the balance of payments during the review period was also 
characterized by large r emittance outflows and private capital outflows driven by banks and private 
non-banks. The UAE recorded a net inflow of foreign direct investment (FDI) in 2020, and in 2021 
the Government unveiled several policy plans to increase FDI outflows and exports t o targeted 
markets.  
7. During the period under review, the UAE concluded the implementation of its Vision 2021 
National Agenda and in 2020 launched its long -term development strategy, UAE Centennial 2071. 
At the core of both strategies is the transformation o f the UAE into a knowledge -based economy, by 
increasing productivity, enhancing the competitiveness of national companies, and investing in high -
technology sectors. As part of these initiatives, the UAE introduced measures to improve the rule of 
law, under took extensive legislative reforms aimed at modernizing the economic environment, and 
removed ownership restrictions on foreign investment in many sectors. Such efforts resulted in 
improving the UAE's rankings in several world and regional indicators, incl uding ease of doing 
business, financial competence and stability, and attraction of FDI. Concerns remain about what 
some observers perceive as lengthy and costly resolution of commercial disputes. The new 
Arbitration Law, effective since 2018, is expected to increase confidence in the judicial system and 
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  8. The formulation of trade policy at the federal level is under the responsibility of the Ministry 
of Economy and is aligned with the cou ntry's long -term strategy. Its main objectives are diversifying 
the economy towards industries based on knowledge and innovation, creating an environment 
conducive to trade and investment, strengthening the competitiveness of the UAE in external 
markets, a nd developing international trade relations.  
9. The UAE is strongly committed to the rules -based multilateral trading system and actively 
participates in the WTO negotiations and the Joint Statement Initiatives on e -commerce and 
investment facilitation. It co nsiders that the development dimension should remain at the core of 
WTO rules. The UAE accepted the Protocol concerning the Agreement on Trade Facilitation in 
April 2016 and the Protocol Amending the TRIPS  Agreement in January 2017, and is a party to the 
Information Technology Agreement. The UAE actively supports a multilateral response to the 
COVID -19 pandemic and adheres to several joint statements in this regard. It regularly submits 
notifications to the WTO, including recent submissions under the Agreem ent on Agriculture, the 
GATS, the Agreement on Rules of Origin, and the TRIPS  Agreement. During the review period, the 
UAE participated in three cases (two as a complainant, and one as a defendant) under the WTO 
dispute settlement mechanism. The trade poli cies and practices of the UAE have been reviewed 
three times; the last Review took place in June 2016.  
10. The UAE is a member of the Gulf Cooperation Council (GCC) and the Pan -Arab Free Trade 
Area. The GCC as a group has free trade agreements with Singapore a nd the European Free Trade 
Association. In September 2021, the UAE announced plans to bilaterally pursue comprehensive 
economic agreements with eight countries (including India, the Republic of Korea, the 
United  Kingdom, and Turkey) on trade, FDI, and othe r economic areas.  
11. Attracting foreign investment is an essential element of the UAE's strategy to diversify its 
economy and consolidate the country's position as a regional trade and investment hub. The 
long-established free zones regime, where foreign owne rship is allowed at 100%, continues to play 
an important role in the economy. In addition, since the last Review, the UAE has implemented 
legislative changes, including a major overhaul of the Commercial Companies Law (CCL), to open 
the economy to onshore foreign investment. Pursuant to the revised law, foreign investors may now 
own up to 100% of companies in the UAE, except in certain activities having a "strategic impact". 
At the same time, several Emirates have issued their own list of activities in whic h 100% foreign 
ownership is allowed, and the relationship of these lists with the new regime established by the 
revised CCL is somewhat unclear. Another key change to the CCL is the removal of the obligation 
for foreign company branches and representation offices to have a local service agent with 100% 
UAE ownership. The National Agenda for Foreign Direct Investment encourages inward FDI from 
targeted countries in "promising sectors" related to innovation, leadership, and advanced industries. 
With respect t o outward FDI, the agenda seeks to strengthen the international presence of UAE's 
leading companies, open new opportunities in targeted sectors and markets for Emirati investors, 
and protect their interests abroad.  
12. There have been no significant changes in  the UAE's customs legislation and institutional 
framework. While the Federal Customs Authority (FCA) defines customs policies and supervises their 
implementation, c ustoms authorities of each Emirate apply the GCC Common Customs Law, and can 
define customs  procedures as long as they are consistent with the Common Customs Law. Customs 
declarations can be submitted electronically and in 2020 the FCA launched a new UAE Customs 
Gateway project, which the authorities plan to develop into a national single window . According to 
the authorities, a  system to request advance rulings on tariff classification, rules of origin, or customs 
valuation is also being developed, in line with the 2020 GCC Unified Guide on Advance Rulings. The 
FCA started to pilot a new UAE Appr oved Economic Operators (UAEO) scheme in 2016, replacing 
earlier systems, to lower clearance times and costs. By mid -2021, 84 companies had been approved 
for the UAEO Program , accounting for a very large share of customs declarations in Dubai.  
13. As a member of the GCC, the UAE applies the Common External Tariff with the vast majority 
(87.6%) of the 7,585  tariff lines at 5%, and another 11.2% duty -free. The average applied tariff in 
2021 was 5.0%, with tariffs on agricultural products higher than those for non -agricultural products. 
The share of lines with non -ad valorem  tariffs stands at 0.7% (including prohibited items), while 
there are no tariff quotas, few tariff peaks, and no nuisance tariffs. Since early 2020, importers are 
no longer required to submit a Certificate of Origin with every shipment but can declare origin in the 
invoice, unless they intend to claim preferential duty treatment. The UAE has bound all tariff lines. 
For 22 tariff lines covering "special goods", applied tariffs exceed bound tariffs  by significant margins. WT/TPR/S/ 423 • United Arab Emirates  
 
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  This applies to 14 tariff lines of goods containing alcohol where the applied duty of 50% exceeds the 
bound rate of 15%, and 8 tariff lines for (parts of) electronic smoking devices where the applied 
duty of 100% exceeds the bound rate of 15%  
14. Following the 2016 agreement among GCC members on Value Added Tax (VAT), the UAE 
introduced a VAT of 5% in 2018. The UAE also introduced an excise tax on harmful goods, in line 
with the Common Excise Tax Agreement of the States of the GCC, in 2 017, and expanded its 
coverage in 2019.  
15. While the GCC member States aim to establish a common GCC -wide list of prohibited imports, 
national lists remain in place. In the UAE, about 0.4% of products are currently prohibited to import, 
while another 0.9% are  classified as "special goods".  
16. The UAE amended its domestic trade remedy legislation to bring it into conformity with the 
2010 amended GCC Common Law on Antidumping, Countervailing Measures and Safeguard 
Measures, while also introducing a national mechan ism that can be applied independently from the 
GCC Common Law. At the GCC level, six trade remedy measures (four anti -dumping duties and two 
safeguard measures) were imposed between 2016 and 2020, while three investigations were 
terminated without the impo sition of a definitive duty. Two investigations are ongoing. There were 
no official requests for initiation of investigations for anti -dumping, countervailing duties, or 
safeguard measures at the UAE level.  
17. Export agencies at the emirate level provide gene ral support to exporters, such as co -financing 
certain marketing activities, providing information on foreign markets and general export 
management skills, or providing other practical assistance to potential exporters. The UAE also 
established a new feder al export credit agency in 2017, offering trade credit insurance, other 
guarantees and insurance, and letter of credit confirmation. Buyer credit facilities to firms across the 
UAE have also been provided by the Abu Dhabi Exports Office (ADEX) since 2019. Information 
regarding the total financial support provided to enterprises via these agencies, the total amount of 
export credits insured, and their breakdown by economic activity was not available.  
18. In March 2021, the authorities launched Operation 300bn, a 10 -year strategy aiming to 
increase the industrial sector's contribution to GDP from AED  133 billion to AED  300 billion by 2031. 
It aims to create an attractive business environment, support the development of home -grown 
national industries, stimu late innovation and technology adoption, and boost the reputation of the 
UAE as an investment destination. The above -mentioned removal of foreign ownership restrictions 
is aligned with this strategy. Nevertheless, free zones continue to play an important r ole in the 
economic development and diversification strategy of the UAE. In 2020, the zones accounted for 
63.8% of the UAE's non -oil merchandise exports and 36% of all imports. The authorities also grant 
support to SMEs, including by (i) federal - and emira te-level government and entities procuring 
certain percentages from SMEs, and (ii) the Emirates Development Bank providing certain financial 
support to SMEs.  
19. In 2020, the Emirates Authority for Standardization and Metrology (ESMA) was merged into 
the newly  founded Ministry of Industry and Advanced Technology (MoIAT), which took over all issues 
related to standardization and metrology. The MoIAT participates in the standards -setting 
procedures at the GCC Standardization Organization (GSO). At the national le vel, ESMA and 
subsequently the MoIAT established an additional 6,161 standards between 2016 and 2021, bringing 
the total number to 26,500, with 1,214 technical regulations adopted at the end of 2020. More than 
95% of standards reflected GCC standards at th e end of 2020. Over the review period, the UAE 
made 214 notifications under the Agreement on Technical Barriers to Trade: 43 notifications by the 
UAE alone and 171  joint notifications by all GCC members.  
20. Federal SPS regulations are also generally based on GSO standards with the federal ministry 
and local authorities sharing responsibility for control and inspection of agricultural food safety and 
phytosanitary control . A GCC Guide for Control on Imported Foods was piloted in 2015 -16, but its 
application was  suspended in 2017 before entering fully into force. In 2018, the UAE launched a 
National Food Accreditation and Registration System (ZAD), where all food items, whether 
domestically produced, imported, or modified, must be registered free of charge before  entering the 
UAE market. The UAE also launched a National Rapid Alert System for Food in 2017. Between 
January 2016 and September 2021, the UAE submitted 272 notifications under the Agreement on WT/TPR/S/ 423 • United Arab Emirates  
 
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  the Application of Sanitary and Phytosanitary Measures, incl uding 68 regular and 180 emergency 
(or addenda emergency) notifications.  Seventy -six notifications were joint GCC  notifications.  
21. There were no changes to the basic competition policy legislation. A Cabinet Resolution issued 
in 2016 established the market t hresholds needed for the application of the 2012 Competition Law 
and its Implementing Regulations. A Competition Regulation Committee was established in 2018 to 
make recommendations to the Ministry of Economy on the implementation of the legislation. The 
Competition Law prohibits the use of restrictive agreements and the abuse of dominant position, 
and requires prior approval for economic concentrations. It applies to natural or legal persons 
engaged in economic activities in the UAE, but excludes activitie s subject to sector -specific laws, 
acts of federal and local governments and government -owned enterprises, and SMEs. Enforcement 
of the Competition Law is still in its early stages, with a dozen cases having been handled during 
2018-21, for which there are  no public records. Parties to a complaint are encouraged to reach an 
amicable solution. In general, prices are determined by the market. However, certain commodities 
are subject to price monitoring, mainly to protect consumers' welfare, and price controls  apply in 
some sectors such as pharmaceutical products, telecommunications services, electricity, and water.  
22. State -owned enterprises (SOEs) and government -related entities (GREs) continue to play an 
important role throughout the economy, including in the d iversification strategies of the authorities. 
Mostly, they are fully or partially owned by various sovereign wealth funds at the emirate or federal 
level, and some GREs compete against each other directly or indirectly. Over the review period, the 
Governme nt continued to implement reforms that improved governance, strengthened financial 
independence, and adjusted ownership structures, including via partial divestments. Government 
revenue from GRE profits represented 8.8% of GDP in 2020.  
23. The UAE is not a sig natory to the Agreement on Government Procurement. Cabinet Resolution 
No. 4 of 2019 is the main law regulating government procurement at the federal level. It aims to 
unify procedures, reduce costs, and align the procurement system with international best practices. 
Under the legislation, a price preference of 10% is granted to: (i)  SMEs with up to AED 10 million in 
capital that receive support under federal and local laws; (ii)  green companies; and (iii)  green goods 
and services produced in the UAE. Moreov er, 10% of federal procurement value is set aside for 
SMEs. Currently, a digital Government Procurement Platform is being developed to offer more 
flexibility in procurement processes, streamline procedures, and incentivize the participation of SMEs 
in fede ral procurement. At the emirate level, local laws also provide for price preferences and 
set-asides for SMEs. Under the National Value -Added Program, launched in September 2021, 
suppliers that achieve the highest scores in national value -added will be gran ted preference in 
tenders by federal entities and major national companies.  
24. During the period under review, the UAE implemented several regulatory changes to its 
intellectual property (IP) regime to strengthen IP protection and create a stimulating environ ment 
for innovation. In 2021, a new patent law and a new trademarks law were enacted, and the UAE 
joined the Madrid Protocol on trademarks registration. A new law was also approved to increase 
penalties in case of commercial fraud. The UAE complies with th e GCC Unified Patent Law, and its 
new trademarks law aligns with the GCC Trademark Law. The UAE announced its intention to join 
the International Union for the Protection of New Varieties of Plants.  
25. The agriculture, forestry, and fishing sector grew as a s hare of GDP during the review period, 
but remained relatively small at less than 1%. Total value of crops is distributed among fruit trees 
(61%), vegetables (22%), and field crops (17%).  The UAE's small agriculture and fishery production 
means that it impo rts most of its food for consumption. The UAE's applied MFN tariff for agricultural 
products (not including fish and fishery products) of 6.7% was higher than its total simple average 
of 5%, notably explained by the high tariff average of beverages, spirit s, and tobacco. Between 2016 
and 2021, the UAE authorities launched several initiatives with the aim of achieving greater 
agricultural production, fostering food security, and rebuilding fish stocks.  
26. The UAE Energy Strategy 2050, launched in 2017, is the f irst unified UAE energy strategy and 
aims to diversify the energy mix while mitigating climate change by reducing greenhouse gas (GHG) 
emissions. According to its recently updated Nationally Determined Contribution, the UAE intends to 
reduce GHG emissions for the year 2030 by 23.5% relative to the business -as-usual scenario. In 
October 2021, the UAE declared its intent to achieve a target of zero GHG emissions by 2050, and 
in November 2021 it announced the Hydrogen Leadership Roadmap, a comprehensive nation al WT/TPR/S/ 423 • United Arab Emirates  
 
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  blueprint to support domestic low -carbon industries, contribute to the country's net -zero ambition, 
and establish the country as a competitive exporter of hydrogen.  
27. The UAE's oil policy changed significantly during the review period, especially since 20 16, in 
response to certain fundamental shifts in international energy markets. Faced with these challenges, 
the UAE adopted a strategy of increasing crude oil production capacity and maximizing the life of its 
reservoirs, and built up its domestic transfor mation capacity. In 2018, the state -owned Abu Dhabi 
National Oil Company, which accounts for most crude oil production in the UAE, announced plans to 
increase crude oil production capacity to 4  million barrels per day (b/d) by the end of 2020 and 
5 million  b/d by 2030. It  plans to increase its refining capacity by 65% to 1.5  million b/d in 2025 
and is also investing in refining capacity abroad. Expansion of production capacity has also been a 
major objective of the UAE's recent gas policy. An integrated gas  strategy adopted in 2018 aims to 
achieve self -sufficiency by 2025 and to sustain liquified natural gas (LNG) exports until 2040.  
28. The oil and gas sector is mainly regulated at the emirate level. Rights to produce oil and 
natural gas are granted through con cession agreements. In Abu Dhabi, and the UAE more generally, 
such concessions are typically granted to state -owned or -controlled companies, and foreign 
ownership is typically limited to minority interests. Pursuant to the Abu Dhabi Income Tax Decree of 
1965, as amended, the Government of Abu Dhabi can subject chargeable persons to income tax on 
chargeable activities, including revenue from oil operations in the Emirate of Abu Dhabi. In June 
2017, a federal law was passed regarding trading in petroleum pro ducts. The Law was designed to 
address the illegal trading of petroleum products that do not meet UAE standard specifications and 
to reduce smuggling of petroleum products from neighbouring countries. Unlike electricity and water 
tariffs, fuel prices are r egulated at the federal level. Since 2015, domestic prices of gasoline and 
diesel have been indexed to international oil prices and are subject to monthly review by the Fuel 
Price Committee.  
29. While electricity generation in the UAE traditionally has relied almost entirely on natural gas, 
the country is currently in the process of switching from nearly all the electricity being produced 
from natural gas to a basket of sources. Electricity transmission and distribution in the UAE are 
controlled by government a uthorities and state -owned companies. The electricity market in each 
Emirate is based on a single buyer model, whereby electricity generated by power producers is sold 
on an exclusive basis to state -owned companies responsible for power transmission and di stribution. 
The National Water and Energy Demand Management Programme, approved by the federal cabinet 
in August 2021, aims to achieve a 40% reduction in energy demand by 2050 in the three most 
energy -consuming sectors in the UAE (transport, industry, and construction) and a 50% reduction 
in water demand. Renewable energy capacity increased very substantially during the period under 
review. Almost all renewables capacity involves solar power.  
30. Banking dominates the financial sector, which also includes a well -developed Islamic finance 
sector. State ownership in the three largest commercial banks remains significant, and concentration 
in the banking sector increased over the review period. Access to banking services has become 
nearly universal, w hile the overall financial situation of the banking sector remains sound despite a 
relatively high share of non -performing loans. Reforms in 2017 introduced the Basel III framework, 
while a new Central Bank law introduced regulation by type of banking acti vity rather than by type 
of financial institution. The Central Bank continued to improve the prudential regulatory framework 
by issuing regulations and standards on risk management, corporate governance, and requirements 
for financial institutions housing an Islamic window. It also strengthened consumer protection 
regulations and continued to develop the regulatory framework required for a mature FinTech 
environment. Authorities in each Emirate levy a profit tax of 20% on foreign bank branches (a tax 
not le vied on domestic banks). Financial Free Zones in Dubai and Abu Dhabi are separately 
regulated.  
31. During the review period, the regulatory oversight of the insurance sector shifted from the 
Insurance Authority to the Central Bank following their merger. Gross  written premiums (GWPs) 
increased marginally, with domestic insurance companies accounting for approximately two  thirds 
of them. Regulatory reforms aimed primarily at increasing transparency for customers, improving 
conduct, and establishing a regulatory sandbox. This included permitting the online sale of life and 
personal insurance policies, as well as certain types of liability and property insurance, and 
prohibiting certain anti -competitive behaviour. To encourage development of reinsurance, the 
regula tor also issued specific regulations, including re -Takaful (Islamic insurance), in 2019.  WT/TPR/S/ 423 • United Arab Emirates  
 
- 11 - 
 
  32. The construction sector was among those most affected by the COVID -19 pandemic, 
compounding a series of earlier downturns. A longer trend of declining real estate pric es started to 
stabilize and reverse in early 2021. During the review period, the Government of Dubai undertook 
efforts to stabilize imbalances in the construction sector and started to develop a strategic plan for 
all mega projects. The licensing of certai n construction -related activities is regulated at the emirate 
level. During the review period, consolidation of private and government -owned companies in the 
sector took place.  
33. The telecommunications sector is dominated by the two state -owned operators and  the 
Government considers the sector as critical for economic development and national digital 
transformation. Despite continuously high subscription rates, the total number of subscribers 
declined over the review period. Access to services is nevertheless  very competitive and the speed 
of fixed -broad Internet very high. The UAE is one of the countries where commercial 5G services 
were first launched. Pro -competitive regulations cover non -discriminatory access to the networks of 
operators that are dominant in specific service areas, price transparency and price controls, the 
monitoring of performance standards, consumer data privacy, and advertising. VoIP services are 
regulated in the UAE and, during the pandemic, additional VoIP and communication applicatio ns 
were permitted and remain available until further notice. E -commerce grew significantly over the 
review period, with the 2020 revision of the Consumer Protection Law expanding coverage to 
electronic commerce and personal data protection legislation bein g further developed.  
34. The transportation sector is a key component of the Government's strategy to make the UAE 
a major trading hub. In 2020, the Federal Transport Authority was merged into the Ministry of 
Energy and Infrastructure, which regulates maritime  and land transportation. The General Civil 
Aviation Authority manages all activities related to civil aviation at the federal level. Both federal 
and emirate authorities regulate and implement policies for transportation. In 2019, Dubai 
International Airp ort was ranked as the 4th busiest airport in the world in terms of total passenger 
traffic. Six airlines are established in the UAE, including the two major international airlines (Emirates 
Airlines and Etihad Airways), which both recorded losses due to th e COVID -19 pandemic. The UAE 
is also a maritime hub, and the Jebel Ali Port in Dubai is the sole port in the Middle  East and North 
Africa to reach the world's top 30 busiest ports. The national railway is currently under construction 
and should reach an an nual capacity of over 50 million tonnes of goods at completion.  
35. The authorities aim to establish the UAE as a regional medical hub and to increasingly attract 
medical tourism. Between 2015 and 2019, the number of medical tourists increased from nearly 
300,000 to around 350,000. Most healthcare service providers are private, and many are part of 
international firms. They often collaborate with state -owned providers, which usually operate the 
largest hospitals and account for a large share of total available beds. The federal authorities revised 
legislation concerning private health facilities, health professionals, and medical products during the 
review period. Emirate -level health authorities (where they exist) accredit and license medical 
professionals and medical facilities in line with emirate -level procedures that broadly follow unified 
qualification requirements at the federal level.  
 WT/TPR/S/ 423 • United Arab Emirates  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The United Arab Emirates (UAE) is the second -largest economy of the Gulf Cooperation Council 
(GCC) after the Kingdom of Saudi Arabia. Deserts account for 80% of its land area, but the UAE is 
well connected to regional and international markets due to its strat egic location on the Arabian 
Peninsula and its ports.1 Overall, a large part of the UAE economy continues to rely on the oil and 
gas industries, with hydrocarbons representing 41% of public revenues in 2020 and 26% of 
merchandise exports in 2020.2 The Go vernment's top priorities are to diversify income sources, 
reinforce the country's position as a trade and investment hub, and support social welfare and 
well-being.3 
1.2.  The UAE is a federation of seven Emirates characterized by different economic features. The 
Emirate of Abu Dhabi accounts for more than three quarters of the total territory, is by far the largest 
economy (60.5% of the UAE total GDP in 2020 in current prices4), and derives 50.4% of its GDP 
from hydrocarbons.5 It is the sole Emirate where mi ning and quarrying is among the top three 
sectors of the economy. The Emirate of Dubai accounted for 25.9% of the UAE's GDP in 2020 and is 
comparably more diversified due to its strong services sector.6 The five remaining Emirates' shares 
of GDP are: Sharjah, 7.9%; Ras Al  Khaimah, 2.1%; Ajman, 2%; Fujairah, 1.4%; and Umm 
Al Quwain, 0.2%.7 The decentralized structure of the UAE allows for a certain degree of competition 
among Emirates in terms of investm ent and production incentives. While each Emirate's 
development plans integrate into the framework established by the Federal Government 
(Section  2.1), each aims to increase production capacities and the attractiveness of its own territory 
as an investment  destination. This process appears to induce competition, especially among the 
large Emirates and may explain recent trends in, for example, infrastructure development and the 
establishment of free zones.  
1.3.  The composition of the overall UAE economy did not change significantly during the review 
period (Chart 1.1). The mining sector represents almost a third of GDP, although its share has 
slightly declined. "Mining and quarrying including crude oil and natural gas" decreased from 30.6% 
of GDP in 2016 to 29.8%  in 2019 and 29.1% in 2020 (constant prices 2010). The next three main 
sectors in 2019 and 2020 were wholesale and retail trade, manufacturing, and construction.  
 
1 Emirates Nature and WWF Connect with Nature, Habitat: Desert . Viewed at: https://bit.ly/2QY0jA4 . 
2 Federal Competitiveness and Statistics Centre. Figures do not include re -exports.  
3 Information provided by the authorities.  
4 Information provided by the authorities.  
5 Information provided by the authorities for 2020. Hydrocarbons are defined as mining and quarrying 
including crude oil and natural gas.  
6 Services represented about 75% of Dubai's GDP in 2020. Dubai Statistics Centre, Gross Domestic 
Product at Constant Prices For 2020  – Emirate of Dubai . Viewed at: 
https://www.dsc.gov.ae/Report/Gross%20Domestic%20Product%20at%20Constant%20Prices%202020%20 -
%20Emirate%20of%20Dubai%202020%20v2.pdf . 
7 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
- 13 - 
 
  Chart 1.1 GDP by economic activity (at 2010 con stant prices), 2016 and 2020  
 
Note:  Preliminary for 2020 data.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities.  
1.4.  Compared to that of the Kingdom of Saudi Arabia, the other main economy of the GCC, the 
economy of the UAE is less based on hydrocarbons8, but the country's economic performance and 
fiscal revenues are still impacted by changes in the oil and gas markets. Crude oil and petroleum 
products account for 86% of all hydrocarbon exports, the rest b eing gas.9 The UAE is currently a net 
importer of gas ( Section  4.2.2.1 ).10 The long -term oil -price forecast of USD  60 per barrel in 2025 is 
currently below the UAE's fiscal breakeven price of about USD  69 per barrel.11 The IMF expects oil 
demand to peak w ithin the next two decades.12 Economic diversification thus remains a priority of 
the Government, especially in Abu Dhabi where mining and quarrying activities represent half of the 
GDP.13 By contrast, Dubai's GDP , the second largest in the Federation, is 99% derived from non -oil, 
close to Sharjah's 97% non -oil GDP.14 These Emirates' economies are diversified horizontally across 
sectors, while diversification in Abu Dhabi is primarily vertical within the hydrocarbons sector.15 
1.5.  The UAE possesses several sove reign wealth funds (SWFs), notably used as assets for economic 
diversification with investments targeted towards non -oil sectors. The estimated SWF capital of 
Abu Dhabi alone, over USD  1 trillion, is substantial in comparison to total assets of banks opera ting 
in the UAE, which reached USD  868 billion in December 2020 (AED 3,188 billion16) and represents 
at least 2.8 times the country's 2020 GDP. Abu Dhabi's newest SWF, ADQ,  was launched in 2018 
and oversaw USD  110 billion in assets in 2021.17 The Emirates Investment Authority (EIA) is the 
only SWF of the Federal Government. Established by Federal Decree Law No.  4 of 2007, the EIA's 
 
8 Crude petroleum and natural gas represented 38% of GDP in the Kingdom of Saudi Arabia in 2019 
(WTO document WT/TPR/S/407, 27 October 2021).  
9 Data from the Central Bank of the UAE, for 2020.  
10 Saadi, D.  (2020) , "UAE Still Needs LNG, Qatari Gas Imports after Huge Jebel Ali Discovery: Analysts", 
S&P Global , 4 February.  
11 KPMG (2021), Oil Market Quarterly Review, Q1 2021, p. 5. Viewed at: 
https://assets.kpmg/content/dam/kpmg/ru/pdf/2021/04/ru -en-oil-price-1Q-2021.pdf ; and IMF, Breakeven Oil 
Prices. IMF data for 2021 for the UAE are projected. Viewed at: 
https:// data.imf.org/regular.aspx?key=60214246 . 
12 IMF (2020), The Future of Oil and Fiscal Sustainability in the GCC Region , No. 20/01, p.  13. 
13 Calculation based  on Statistics Centre, Statistical Yearbook of Abu Dhabi 2020 , p. 16. Viewed at: 
https://www.scad.gov.ae/Release%20Documents/Statistical%20Yearbook%20of%20Abu%20Dhabi_2020_Ann
ual_Yearly_en.pdf . 
14 Information provided by the authorities.  
15 Mazarei, A.  (2019) , "Efforts of Oil Exporters in the Middle East and North Africa to Diversify Away 
from Oil Have Fallen Short", Peterson Institute for International Economics , April 2019, p.  5. 
16 Central Bank  of the UAE , UAE Banking Indicators . Viewed at: https://bit.ly/34O8y57 . 
17 Bloomberg (2021),  "Wealth Fund Newbie Comes into Focus in Abu Dhabi's $1 Trillion Sovereign Hub", 
2 March 2021. The authorities did not confirm or correct the estimates regarding SWFs' assets. The Secretariat  
could not obtain information from the authorities on the destination of SWFs' investments.  
Agriculture, 
forestry and 
fishing
0.7%Mining and 
quarrying
30.6%
Manufacturing
8.1%Electricity, gas and 
water
3.0%Construction
8.6%Wholesale and 
retail trade
11.7%Financial and insurance 
activities
8.5%Public administration 
and defence
5.5%Real estate 
activities
5.6%
Transportation and storage
5.3%
Information and 
communication
2.8%
Other services
9.6%2016 2020
Agriculture, 
forestry 
and fishing
0.8%Mining and 
quarrying
29.1%
Manufacturing
8.8%Electricity, gas 
and water
3.0%Construction
8.3%Wholesale 
and retail 
trade
12.0%Financial and insurance 
activities
8.2%Public administration 
and defence
5.6%Real estate 
activities
5.4%Transportation and 
storage
5.1%
Information and 
communication
3.3%
Other 
services
10.4%Services 
50.0%
Source: WTO Secretariat calculations, based on trade statistics provided by the authorities. Services 
49.0%Chart 1.[UAE] Gross domestic product by economic activity (at 2010 constant prices), 2016 and 2020
Note:          Preliminary for 2020 data.WT/TPR/S/ 423 • United Arab Emirates  
 
- 14 - 
 
  primary objective is to manage the sovereign wealth of the UAE by investing in a diversified portfolio 
of assets in key economic sectors and industries with the aim of delivering sustained financial gains.18 
1.6.  The UAE's economy is highly reliant on foreign workers, as immigrants made up 87.9% of the 
total population in 2019."19 As most foreign workers are men, men repr esent a much larger share 
of the total population than women, and thus working women represent only 15% of the total labour 
force.20 Employment data show differences between occupation of citizens and non -citizens and of 
men and women. More than 40% of wor king non -Emirati women are employed by private 
households, compared to 0.1% of working Emirati women.21 More than 80% of Emirati men and 
70% of Emirati women who participate in the labour force work for the federal or local government. 
A small proportion w orks for the private sector, compared to 82% of working non -Emirati men and 
about half of working non -Emirati women. In September 2021, the Government introduced the 
target of having 10% of private sector jobs filled by nationals in 2026.22 
1.7.  The Gender Bala nce Council was established in 2015 to encourage women's participation in the 
economy and promote gender equality legislation. Men and women are entitled to equal pay for the 
same work or for work of equal value. Federal Law No.  6 of 2020 announced the imp lementation of 
procedures and controls for evaluating that men and women were performing work of "equal value". 
This regulation concerning the private sector followed a similar one in 2018 for the public sector. In 
2019, the Central Bank issued a notice fo r UAE banking and financial institutions to prohibit gender -
based discrimination in accessing financial services.23 
1.8.  During the review period, the UAE implemented several reforms to attract and retain highly 
skilled foreigners and foreign investment by exte nding residency visas, such as through the 
long-term golden residence visa24, and by granting citizenship to foreign investors, highly skilled 
professionals, and important cultural figures after nomination by an official body. Previously, dual 
nationality was not possible in the UAE.25 The UAE 2021 Talent Attraction and Retention Strategy 
intends to develop appropriate policies to attract global talent and create a competitive environment 
to retain such individuals.26 These measures were implemented within the broader objective of 
transitioning from a hydrocarbon -based to a knowledge -based economy.27 
1.9.  Table 1.1 records some selected economic indicators for the review period.  
Table 1.1 Selected economic indicators, 2016 -20 
 2016  2017  2018  2019  2020a 
GDP, unemployment, population, and inflation       
GDP at current prices (USD billion)  357.0  385.6  422.2  417.2  358.9  
GDP at current prices (AED billion) (for 2020 
Central Bank of the UAE estimates)  1,311.2  1,416.1  1,550.6  1,532.2  1,317.9  
GDP at constant 2010 prices (AED billion)  1,411.1  1,444.6  1,461.7  1,511.6  1,418.9  
GDP per capita ('000 USD)  39.1 41.4 45.1 43.9 38.7 
Real GDP (% change)  3.0 2.4 1.2 3.4 -6.1 
 Oil sector  2.6 -3.2 2.5 2.6 -6.0 
 Non-oil sector  3.2 4.8 0.7 3.8 -6.2 
 
18 Emirates Investment Authority, The Decree . Viewed at: 
https://www.eia.gov.ae/governance/committees/ . 
19 Migration Policy Institute, United Arab Emirates . Viewed at: https://www.migrationpolicy.org/country -
resource/united -arab-emirates . 
20 UNCTAD, General Profile: United A rab Emirates . Viewed at: 
https://unctadstat.unctad.org/countryprofile/generalprofile/en -gb/784/index.html . 
21 UAE Government Portal , Workforce in the UAE . Viewed at: https://u.ae/en/information -and-
services/jobs/uae -workforce . 
22 Emirates News Agency  (2021) , "UAE Rolls Out AED24 Billion Private Sector Emirati Competitiveness 
Program me", 12 September 2021.  
23 UAE Gender Balance Council, Legislation and Gender . Viewed at: 
https://www.gbc.gov.ae/legislations.html .  
24 UAE Government Portal, Golden Visa – Long-Term Residence Visas in  the UAE . Viewed at: 
https://u.ae/en/information -and-services/visa -and-emirates -id/residence -visa/long -term-residence -visas-in-
the-uae.  
25 Emirates News Agency  (2021) , "The Path to UAE Citizenship", 31 January 2021.  
26 Information provided by the authorities.  
27 Economist Intelligence Unit  (2021) , "UAE at Forefront of Gulf's Opening Up to Foreign Expertise", 
11 February  2021. Viewe d at: https://bit.ly/3ayWaJk . WT/TPR/S/ 423 • United Arab Emirates  
 
- 15 - 
 
   2016  2017  2018  2019  2020a 
Unemployment, total (% of total labour force)b 1.6 2.5 2.2 2.3 5 
Population (million)  9.1 9.3 9.4 9.5 9.3 
Inflation (%)  1.6 2.0 3.1 -1.9 -2.1 
Public finances       
Fiscal balance (% of GDP)  -3.2 -0.2 3.8 2.6 -2.5 
Government revenue (% of GDP)  30.5 28.4 30.8 31.1 28.1 
 Oil and gas revenue (% of GDP)c 6.6 10.2 12.7 12.9 11.6 
Government expenditure  
(% current GDP)  33.7 28.6 27.0 28.5 30.6 
General government gross debt (% of GDP)d 19.4 21.6 20.9 26.8 38.3 
External sector       
AED/USD  3.7 3.7 3.7 3.7 3.7 
Real effective exchange rate  111.5  111.4  111.1  110.5  106.9  
Current accou nt (% of GDP)  3.7 7.1 9.6 8.9 5.9 
Gross international reserves (USD billion)  85.4 95.4 99.5 108.4  106.7  
Trade (% of GDP)  187.9  182.1  165.9  173.9  168.7  
Oil production ('000 barrels daily)  4,037.5  3,909.5  3,912.4  3,998.6  3,656.5  
Price of crude oil (brent, USD/ barrel ) 43.7 54.2 71.3 64.2 41.8 
Outward remittance flows (USD billion)  43.8 44.8 46.1 45.0 43.2 
Money and banks       
Broad money (M2; AED billion)  1,225.5  1,276.2  1,308.5  1,413.1  1,478.5  
Banks capital adequacy ratio  18.9 18.1 17.5 17.7 18.1 
Non-performing loans ratio  5.1 5.3 5.6 6.5 8.2 
a Preliminary.  
b Data from the World Bank based on ILOSTAT database, updated on 15 June 2021.  
c Data from the Federal Competitiveness and Statistics Centre.  
d Data from IMF World Economic Outlook Database, April 2021 Edition.  
Source:  WTO Secretariat calculations based on Federal Competitiveness and Statistics Centre, UAE Stat . 
Viewed at: https://uaestat.fcsc.gov.ae/en ; Central Bank of the UAE, Statisti cs. Viewed at: 
https://www.centralbank.ae/en/statistics ; Ministry of Finance, Financial Statistics . Viewed at: 
https://www.mof.gov.ae/En/opendata/Pages/details.aspx?sid=2 ; IMF data. Viewed at: 
https://data.imf.org/ ; UNCTAD Stat. Viewed at: https://unctadstat.unctad.org/EN/ ; BP (2021), 
Statistical Review of World Energy , 70th ed.; and information provided by the authorities.  
1.2  Recent Economic Developments  
1.10.   During the review period and before the COVID -19 pandem ic, the UAE economy grew at a 
moderate annual rate, with real GDP growth ranging from 1.2% to 3.4% between 2016 and 2019 
while the economy was recovering from the 2015 -16 slowdown caused by a decline in oil prices.28 
Prior to the COVID -19 pandemic, forecas ts from late 2019 estimated that real GDP growth would 
increase by 3.6% in 2020 and 3 .2% in 2021.29 While real GDP actually declined by 6.1% in 2020, 
the impact of the COVID -19 pandemic was especially felt in Dubai, where real GDP fell by 10.8% 
year-on-year.30 At the country level, sectors that contracted the most were mining and quarrying 
(including crude oil and natural gas), transportation and storage, and accommodation and food 
services activities. Public finances improved in 2018 and 2019 leading to a fiscal surplus, which 
deteriorated in 2020 to a 0.2% deficit. The COVID -19 pandemic also impacted the labour market, 
with unemployment more than doubling from 2.3 to 5% between 2019 and 2020. The Central Bank 
predicts real GDP growth to reach 2.1% in 2021,  mainly driven by a 3.8% increase of real 
non-hydrocarbon GDP.31 
1.11.   The authorities implemented  several policies to offset the impact of the COVID -19 pandemic. 
The Central Bank announced in March 2020 a comprehensive Targeted Economic Support Scheme 
(TESS) fo r banks and financial institutions of AED 100 billion (AED  50 billion collateralized loans at 
zero-cost liquidity  facility to all banks and finance companies operating in the UAE, and AED  50 billion 
freed up from banks' capital buffers). The scheme was exp anded the following month to reach 
AED 256 billion. The TESS also cut by half the required reserve ratio to 7% on demand deposits, 
 
28 IMF (2019), United Arab Emirates: Staff Report for the 2018 Article  IV Consultation , IMF Country 
Report No.  19/35, p.  1. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/02/01/United -Arab-
Emirates -2018-Article-IV-Consultation -Press -Release -Staff-Report -and-Statement -46571 .  
29 IMF Country Report No.  19/35, p.  40. 
30 Estimate from S&P Global Ratings, confirmed by the authorities.  
31 Central Bank  of the UAE  (2021) , Quarterly Economic Review, Second Quarter 2021 , p. 5. Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -09/QER%202021%20Q2%20 -
%20Economic%20Review%20 -%20S eptember%2022nd.pdf . WT/TPR/S/ 423 • United Arab Emirates  
 
- 16 - 
 
  freeing up about AED 61 billion of liquidity for banks, and reducing their liquidity requirements. 
Additionally, the TESS sup ported micro, small and medium -sized enterprises by encouraging banks 
to help small businesses with payment deferrals and access to new credit lines. As of early 2021, 
the loan deferral programme benefited more than 300,000 individuals, close to 10,000 sma ll and 
medium -sized enterprises (SMEs), and more than 1,500 corporations. The loan deferral programme 
was expected to end in December 2021, while financial institutions will keep access to collateralized 
loans and the zero -cost liquidity facility until mid -2022.32 
1.12.   In addition to the Central Bank stimulus package, the Federal Government announced in 
March 2020 an AED 16 billion fiscal measures plan that included lowering the cost of doing business, 
support to SMEs, and financial assistance to activities part icularly affected by the COVID -19 
pandemic. Financial support complements were also announced at the emirate level in the form of 
reduced or cancelled customs fees, municipality fees, and utility bills.33 
1.2.1   Fiscal policy  
1.13.   The UAE improved its consolidated fiscal balance (at both the federal and emirate levels) from 
a deficit of 3.2% of GDP in 2016 to a surplus of 3.8% in 2018, in part due to an additional 
AED 52 billion in oil and gas revenues due to oil price gains between 2017 and 2018.34 The surplus 
narrowed in 2019, at a time when compensation of employees exceeded AED 100 billion for the first 
time.35 In the context of the COVID -19 pandemic and the Government's policy response, revenue 
from taxes dropped by a third and subsidies expenses, w hich had already been multiplied by three 
between 2016 and 2019, further increased by 50%. Hence in 2020 the fiscal balance slipped into a 
deficit of 2.5% of GDP. Table 1.2 records the main consolidated public finances indicators for 
2016-20. 
Table 1.2 Public finances, 2016 -20 
(AED billion)  
Consolidated general government finances  2016  2017  2018  2019  2020  
Revenue  399.8  401.9  477.6  476.5  370.6  
 Taxes  108.8  167.2  213.0  228.5  149.6  
 Social contributions  4.7 4.6 4.8 4.6 12.7 
 Other revenues  286.3  230.0  259.8  243.3  208.3  
Expenses  386.2  359.6  388.2  383.0  353.2  
 Compensation of employees  65.1 76.1 83.2 107.7  109.2  
 Use of goods and services  62.3 90.9 86.6 119.4  101.7  
 Consumption of fixed capital  5.9 5.0 4.6 5.3 5.7 
 Interest  2.0 1.9 7.0 4.5 6.4 
 Subsidies  8.8 21.8 32.9 26.9 40.4 
 Grants  15.9 10.1 13.3 16.3 3.8 
 Social benefits  35.3 41.2 62.4 74.6 64.8 
 Other expenses  190.8  112.5  98.1 28.2 21.1 
Net acquisition of non -financial assets  55.9 45.0 30.4 53.7 50.4 
Expenditures  442.1  404.6  418.6  436.7  403.6  
Fiscal balance in AED  -42.3 -2.8 59.0 39.8 -33.0 
Fiscal balance in % of current GDP  -3.2 -0.2 3.8 2.6 -2.5 
Note:  Data for 2020 are preliminary.  
Source:  Ministry of Finance, Government Finance Statistics (GFS) Report . 
 
32 Central Bank  of the UAE  (2021) , "CBUAE Remains Committed to Supporting the UAE's Recovery", 
20 April 2021. Viewed at: https://www.centralbank.ae/sites/default/files/2021 -
04/CBUAE%20remains%20committed%20to%20supporting%20the%20UAE%27s%20recovery -%20EN.pdf .  
33 Information provided by the authorities; World Bank (2021), Macro Poverty Outlook: Middle East and 
North Africa , April, pp.  178-179. Viewed at: https://bit.ly/2Tku8LZ ; and OECD, COVID -19 Crisis Response in 
MENA Countries , updated 6 November 2020. Viewed at: https://www.oecd.org/coronavirus/policy -
responses/covid -19-crisis-response -in-mena -countries -4b366396/ . 
34 Federal Competitiveness and Statistics Centre. Under the  Government Finance Statistics Report , 
which has a different method of calculation, presented in Table 1.2, "taxes" include taxes on the production of 
oil and gas.  
35 The authorities indicate that the sharp contraction in "other expenses" is due to a recla ssification of 
fund allocation within the expen se categories.  WT/TPR/S/ 423 • United Arab Emirates  
 
- 17 - 
 
  1.14.   A noteworthy measure during the review period was the introduction of the 5% VAT in 2018. 
The authorities agreed that 30% of collected VAT revenue will be allocated to th e Federal 
Government and the rest to emirate governments.36 The authorities indicate that they do not intend 
to raise the VAT in the upcoming budget cycle (2022 -26). In addition, an excise tax on harmful 
goods was introduced in 2017 (see Section 3.1.4 for further information on the VAT and excise 
taxes).37 At the same time, a package of initiatives to foster investments and growth in late 2018 
and beyond was introduced in line with the Vision 2021 strategy  (Section  2.1) by Abu Dhabi and 
Dubai.38 
1.15.   The federal  budget for 2021 was adopted for a total of AED 58.3 billion, focusing mainly on 
social development (welfare, health, and education).39 This represents a 5.3% cut in federal 
spending compared to 2020. While previous budgets aimed at reaching fiscal equilib rium, the 2021 
budget was the first since 2015 to forecast a deficit of AED 5.8 billion. The 2022 budget of 
AED 58.9 billion will allocate 44% of expenditure to social development and benefits programmes, 
and the authorities expect to achieve fiscal equili brium. Each federal entity determines its 
programmes, plans, and key performance indicators according to the strategic plan prepared by the 
Ministry of Finance within a budget cap. Strategic plans are prepared for five years. The 2022 -26 
plan was approved in October 2021 with a total expenditure of AED 290 billion.40 Importantly, the 
federal budget does not include each Emirate's budget; it covers only the expenditures of the 
Ministries and other federal entities. Each of the seven Emirates has a separate b udget. For example, 
Dubai's budget of AED 57.1 billion is close to the federal budget.41 
1.16.   Fiscal spending activated in 2020 to mitigate the impact of the COVID -19 pandemic is set to 
continue in the next years. The Central Bank projects that a full recovery of the economy in 2022 
will in part be due to fiscal stimulus.42 The IMF commended the decision to extend and maintain 
support to the economy, as the UAE enjoys ample levels of buffers.43 Government spending is 
especially crucial for economic support, as t he currency peg to the US dollar prohibits an independent 
expansionary monetary policy.  
1.17.   Since the 2018 Public Debt Law, the Federal Government is allowed to issue sovereign 
bonds.44 In October 2021, the UAE started to issue its first federal government bonds, denominated 
in US dollars with maturities of 10, 20, or 40 years. The Government plans to use funds raised to 
finance infrastructure projects and contribute to finance the Emira tes Investment Authority's 
investment strategy. In December 2020, Moody's attributed an Aa2 rating in creditworthiness to the 
UAE, which was the highest sovereign rating in the region, with a stable outlook for the national 
economy.45 The Aa2 rating was co nfirmed in May 2021.  
1.18.   Financial stability differs across the Emirates. In 2009, Abu Dhabi had to support the Emirate 
of Dubai through a USD  10 billion bailout. In its 2019 Article  IV Consultation Staff Report, the IMF 
noted that Dubai's specific debt vulner ability stems from its large government -related enterprises 
(GREs), which carry a combined debt of about 70% of Dubai's GDP (at the end of 2017, Dubai's 
government debt appeared relatively low at 28% of its GDP, but total public debt including GREs' 
debt e xceeded 100% of its GDP). While the IMF sees this vulnerability  as a source of concern, the 
authorities emphasized that most of the GRE -related debt is not explicitly guaranteed by the Dubai 
Government  (Section 3.3.5) .46 In recent years, Abu Dhabi attempte d to boost efficiency of GREs by 
 
36 IMF Country Report No.  19/35, p.  32.  
37 Malik, M. and Nagesh T. (2021), "Fiscal Sustainability and Hydrocarbon Endowment Per Capita in the 
GCC" in G. Luciani and T. Moerenhout (eds.), When Can  Oil Economies Be Deemed Sustainable? The Political 
Economy of the Middle East , Singapore: Palgrave Macmillan.  
38 Central Bank  of the UAE (2018) , Annual Report , p. 24. 
39 UAE Government P ortal, Government Finance . Viewed at: https://u.ae/en/information -and-
services/finance -and-investment/federal -finance . 
40 Emirates News Agency  (2021) , "General Budget for 2022 -2026 Underscores Government's 
Commitment to Achieve Happiness, Security, and Decent Life for UAE People", 13 October 2021.  
41 Emirates News Agency  (2020) , "Mohammed bin Rashid Approves Dubai Government's General Budget 
for 2021 wit h AED  57.1 Billion Expenditures", 27 December 2020.  
42 Central Bank  of the UAE  (2020) , Annual Report , p. 21. 
43 IMF, Transcript of April 2021 Middle East and Central Asia Department Press Briefing , 11 April 2021. 
Viewed at: https://bit.ly/2Phhw6G . 
44 IMF Country Report No.  19/35, p.  3 of the statement by the executive director for the UAE.  
45 UAE Government Portal, UAE Global Credit Ranking . Viewed at: https://u.ae/en/information -and-
services/finance -and-investment/uae -global -credit -rating . 
46 IMF Country Report No.  19/35, pp.  11 and 34.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  encouraging mergers and fundraising not relying on the Government.47 During the 2019 Article  IV 
consultations, the IMF stressed the importance of establishing a transparent and rules -based fiscal 
framework around long -term fiscal anchors to balance long -term and short -term objectives. 
Strengthening technocratic advice, moni toring the fiscal framework, and assessing contingent 
liabilities of GREs were noted as particularly important.48  
1.2.2   Monetary and exchange rate policy  
1.19.   The UAE has a fixed exchange rate regime, whereby the domestic currency, the UAE dirham , 
is pegged (and has  been since November 1997) to the US dollar at an exchange rate of 
AED 3.6725/USD  1. Thus, the Central Bank must keep enough reserves to maintain the currency's 
peg to the US dollar. As a result, monetary policy is focused on maintaining the peg. The UAE's  
exchange system is free of restrictions on payments and transfers for international transactions, 
except for certain restrictions under terrorist financing provisions, taken in accordance with 
UN resolutions.  
1.20.   In its 2019 Article  IV Consultations Staff Rep ort, the IMF noted that the long -standing 
exchange rate peg continued to serve the UAE well, most importantly by anchoring prices. The peg 
is supported by comfortable external financial buffers (including Central Bank reserves and SWFs) 
and open and flexib le labour markets.49 
1.21.   Monetary policy is formulated and conducted by the Central Bank. Federal Law No.  10 of 1980 
Regarding the Central Bank was repealed by Federal Law No.  14 of 2018. The new law states the 
objectives of the Central Bank as:  
• maintaining th e stability of the national currency within the framework of the monetary 
system;  
• contributing to the promotion and protection of the stability of the financial system in 
the State; and  
• ensuring prudent management of the Central Bank's foreign reserves.50 
1.22.   The Central Bank regulates the banking and financial sectors, except for the financial 
institutions operating in the Dubai International Financial Centre (DIFC), which is a separate legal, 
geographic, and judicial jurisdiction established as a financial fr ee zone, with a working relationship 
with the Central Bank and those operating in the Abu Dhabi Global Market.51 
1.23.   The 2018 Federal Law raised the Central Bank's capital to AED 20 billion (USD  5.45 billion) 
by transferring AED 17.5 billion available from the  general reserve account to the capital account. It 
also provided for the establishment of a licensing committee under the Ministry of Finance with 
representatives from all regulators in the UAE that shall consider and decide on the regulatory rules 
applic able to emerging financial activities not yet captured by existing legislation in the UAE.52 
Article  34 of the new law indicates that the Central Bank and the Ministry of Finance shall establish 
a mechanism for coordinating monetary policy and fiscal polic y for the purpose of achieving balanced 
growth in the national economy. The Central Bank manages liquidity facilities, and it continues to 
act as the Government's financial advisor and as the lender of last resort. The IMF commended the 
Central Bank's regu latory framework modernization, especially regarding new risk management 
 
47 Malik, M. and  Nagesh, T. (2021), "Fiscal Sustainability and Hydrocarbon Endowment Per Capita in the 
GCC", in G. Luciani and T.  Moerenhout (eds.), When Can Oil Economies Be Deemed Sustainable? The Political 
Economy of the Middle East , Singapore: Palgrave Macmillan.  
48 IMF (2019) , "IMF Staff Completes 2019 Article  IV Mission to the United Arab Emirates" , 
6 November  2019. Viewed at: https://www.imf.org/en/News/Articles/2019/11/06/pr19398 -united -arab-
emirates -imf-staff-completes -2019-article -iv-mission . 
49 IMF Country Report No.  19/35, p.  14.  
50 Federal Law No.  14 of 2018, Article  4. 
51 IMF (2007) , United Arab Emirates – Dubai International Financial Centre: Financial Sector Assessment 
Program – Detailed Assessment of Observance of IOSCO Objectives and Pri nciples of Securities Regulation , 
November 2007, pp.  4 and 8.  
52 PwC, UAE Enacts New Decree Law on Central Bank  of the UAE  & Organization of Financial Institutions 
and Activities , November 2018. Viewed at: https://www.pwc.com/m1/en/tax/documents/2018/cbuae -
november -2018.pdf .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  framework for banks, compliance with Basel III requirements, compliance and internal audit, and 
non-bank financial institutions regulations.53 
1.24.   The Central Bank introduced the Dirham M onetary Framework in 2020 to achieve the Central 
Bank's monetary policy objectives of managing the national currency's exchange rate and money 
markets, and facilitating the control of liquidity in the UAE banking system. It includes introducing 
an Overnigh t Deposit Facility for UAE banks to manage excess liquidity, granting flexibility for the 
maintenance of reserve requirements, and promoting the development of a local market for 
securities denominated in UAE dirham. The implementation roadmap of the new D irham Monetary 
Framework was almost completed at the end of 2021 and expected to be fully implemented by the 
second quarter of 2022.54 
1.25.   Inflation, as measured by the consumer price index increased from below 2% in 2016 and 
2017 (1.61% and 1.96%, respectivel y) to 3.06% in 2018.55 The years 2019 and 2020 were 
deflationary, with consumer prices declining by 1.93% and 2.07%, respectively.56 The largest 
contributors to the 2019 decrease in consumer prices were the cost of housing (representing 34% 
of the consumer  basket57), as rents and property sale prices declined (Section 4. 3.2), and gas and 
utilities. This trend was shared throughout the GCC due to an oversupply of property in tandem with 
expatriates moving away in light of national programmes that favour empl oyment of citizens. Other 
sectors contributing to deflation across the GCC were transportation, communications, clothing, and 
food (in the UAE and Qatar).58 In 2020, the restrictions imposed due to the COVID -19 pandemic 
disrupted consumer demand while many foreign workers left the UAE and recreational activities were 
closed. In 2020, the UAE recorded one of the highest deflation rates globally, as did Bahrain  and 
Qatar.59 The Central Bank predicted inflation to remain negative at -0.2% in 2021 in a still uncertain 
economic environment.60 Due to the Central Bank pegged foreign exchange rate, domestic short -
term interest rates usually follow US interest rates.61 The real effective exchange rate (REER), which 
takes into account the inflation differential between the UAE and its trading partners62, remained 
around 110 between January 2016 and mid -2020 (with REER base of 100 set in 2010). It then 
depreciated to stab ilize around 101 throughout 2021.63 
1.3  Balance of Payments  
1.26.   Over the review period, the UAE current account was consistently in surplus, although with 
some fluctuations. The surplus increased from USD  13.2 billion in 2016 to USD  40.5 billion in 2018, 
mainly dr iven by a strengthening trade balance (exports of both hydrocarbons and 
non-hydrocarbons increased) and by the reduction in the services deficit (due to both increased 
services exports and fewer imports, notably of freight and insurance). Exports of non -hydrocarbons 
represented about twice the amount of hydrocarbons exports in 2016, but their pace of 
augmentation until 2018 (8%) was much slower than that of exports of hydrocarbons (45%). In 
2019, the current account surplus contracted slightly, as exports o f hydrocarbons fell by 
USD 7 billion while other indicators remained overall constant. Noteworthy, the services balance 
 
53 IMF Country Report No.  19/35, pp.  15 and 45.  
54 Information provided by the authorities.  
55 The IMF estimated that the impact of VAT introduction on i nflation has been limited. IMF Country 
Report No.  19/35, p.  14.  
56 World Bank data, Inflation, Consumer Prices (Annual %) – United Arab Emirates . Viewed at: 
https://data.world bank.org/indicator/FP.CPI.TOTL.ZG?locations=AE . 
57 Central Bank  of the UAE (2021) , Quarterly Economic Review , Second Quarter 2021, p.  13. Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -09/QER%202021%20Q2%20 -
%20Economic%20Review%20 -%20September%2022nd.pdf . 
58 PwC, Deflation Persists for Gulf Economies , June 2019. Viewed at: 
https://www.pwc.com/m1/en/publications/middle -east-economy -watch/2019 -june/gulf -experiences -the-
deepest -deflation -in-decades.html . 
59 Omar, A.  (2020) , "Steepest Deflationary Forces Globally Grip Gulf States", Bloomberg  via Al Jazeera , 
27 August 2020.  
60 Central Bank  of the UAE (2021) , Quarterly Economic Review , Second Quarter 2021, p. 13.  
61 Bank for International Settlements (2016), Inflation Mechanisms, Expectations and Monetary Policy , 
BIS Papers No.  89. Viewed at: https://www.bis.org/publ/bppdf/bispap89.pdf . 
62 Central Bank  of the UAE (2021) , Quarterly Report Q2 2021 , p. 14. Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -09/QER%202021%20Q2%20 -
%20Economic%20Review%20 -%20September%2022nd.pdf .  
63 Federal Reserve Bank of St. Louis database, Real Broad Effective Exchange Rate for United Arab 
Emirates. Vi ewed at: https://fred.stlouisfed.org/series/RBAEBIS . WT/TPR/S/ 423 • United Arab Emirates  
 
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  recorded a surplus for the first time in 2019. In 2020, the current account surplus fell by 44% to 
USD 21 billion, as trade was largely impacted by the COVID -19 pandemic ( see below ). At the same 
time, net private transfers, which are driven by the large community of expatriates, decreased from 
USD 38 billion in 2019 to USD  34.8 billion in 2020, as some foreign workers returned home or 
received lower income.  
1.27.   In line with developments in the current account, the financial account maintained a deficit 
throughout the review period. It increased to USD  34.6 billion in 2018 and declined in 2019 and 
2020 to a deficit of USD 21.4 billion. Finan cial outflows came predominantly from banks and private 
non-banks (USD  20.4 billion outflows combined in 2020). Direct investment recorded a slight surplus 
for the first time in 2020 with inward FDI exceeding outward FDI (Section 1. 4.2). The deficit in 
financial outflows from public sector enterprises widened from USD  0.8 billion  in 2016  to 
USD 4.2 billion in 2019 before declining to USD  2.9 billion in 2020.  
1.28.   In total, the balance of payments recorded a deficit in 2016 (USD  7.1 billion) and 2020 
(USD  3.6 bil lion) and surpluses in 2017, 2018, and 2019, which allowed the Central Bank to build 
up more international reserves (Table  1.3). 
Table 1.3 Balance of payments, 2016 -20 
(USD billion)   
2016  2017  2018  2019  2020a 
Current account balance  13.2 27.5 40.5 37.3 21.0 
 Trade balance (FOB)  68.4 67.2 85.7 80.5 62.3 
 Total exports and re -exports (FOB)  295.0  313.5  321.0  313.8  273.1  
 Total exports of hydrocarbon  46.5 58.1 67.3 60.1 38.4 
 Crude oil exports  25.2 31.3 32.0 29.7 18.6 
 Petroleum products exports  15.3 19.3 25.9 22.7 14.3 
 Gas exports  6.0 7.5 9.4 7.7 5.4 
 Total exports of non -hydrocarbon  103.5  106.6  111.8  113.0  107.4  
 Re-exports  145.1  148.8  141.9  140.7  127.3  
 Total imports (FOB)  -226.6  -246.3  -235.4  -233.3  -210.8  
 Services, net  -18.2 -1.3 -0.5 2.1 2.6 
 Credits  65.6 70.5 71.8 90.3 62.1 
 Travel  19.5 21.0 21.4 38.4 24.6 
 Transport  25.5 27.9 28.3 29.1 16.6 
 Government services  0.9 0.9 1.0 1.0 0.9 
 Other services  19.7 20.6 21.2 21.8 20.1 
 Construction  2.5 2.6 2.7 2.8 2.1 
 Intellectual property  3.5 3.6 3.7 3.8 3.0 
 Information & computer & telecommunications  6.1 6.5 6.7 6.9 7.9 
 Otherb 7.6 7.9 8.1 8.3 7.1 
 Debits  -83.8 -71.8 -72.3 -88.2 -59.5 
 Travel  -17.1 -17.6 -18.0 -33.4 -15.1 
 Transport  -14.1 -14.4 -14.9 -15.2 -8.3 
 Government services  -1.2 -1.2 -1.3 -1.3 -1.4 
 Freight & insurance  -40.0 -27.4 -26.1 -25.9 -23.4 
 Other services  -11.4 -11.2 -11.9 -12.3 -11.4 
 Construction  -3.1 -2.5 -2.6 -2.7 -2.0 
 Intellectual property  -2.5 -2.6 -2.8 -2.9 -1.9 
 Information & computer & telecommunications  -3.1 -3.2 -3.5 -3.6 -4.3 
 Otherb -2.7 -2.9 -3.0 -3.2 -3.2 
 Investment income, net  2.1 2.8 1.4 2.1 -0.5 
 Banking system  -1.9 -1.9 -1.9 -1.4 -0.8 
 Private non -banks  -1.3 -1.4 -1.3 -1.6 -0.8 
 Enterprises of public sector  8.5 9.4 9.6 9.7 4.3 
 Official debt services (interest)  -1.4 -1.5 -1.8 -1.8 -0.9 
 Foreign hydrocarbon companies in the UAE  -1.8 -1.9 -3.2 -2.8 -2.3 
 Transfers, net  -39.1 -41.2 -46.1 -47.3 -43.5 
 Public  -6.0 -6.0 -7.8 -9.3 -8.7 
 Private  -33.1 -35.2 -38.3 -38.0 -34.8 
Financial account  -19.3 -17.0 -34.6 -24.6 -21.4 
 Private capital  -18.5 -16.2 -31.8 -20.4 -18.5 
 Direct investment  -6.1 -3.7 -4.7 -3.3 0.9 
 Outward  -15.7 -14.1 -15.1 -21.2 -18.9 
 Inward  9.6 10.4 10.4 17.9 19.9 
 Portfolio investment  1.2 1.3 1.1 1.1 1.1 
 Banks  -10.8 -9.0 -21.8 -8.6 -11.5 WT/TPR/S/ 423 • United Arab Emirates  
 
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2016  2017  2018  2019  2020a 
 Private non -banks  -4.9 -4.8 -6.4 -9.6 -8.9 
 Enterprises of public sector  -0.8 -0.8 -2.7 -4.2 -2.9 
Errors and omissions  -1.0 -0.5 -2.4 -3.1 -3.3 
Overall balance  -7.1 9.9 3.5 9.7 -3.6 
Total change in international reservesc 7.4 -9.9 -3.6 -9.7 3.6 
 Change in reserves at the Central Bank  7.1 -9.9 -3.5 -9.6 3.7 
 Change in reserve position with IMF and SDR  0.4 0.0 -0.1 -0.1 -0.1 
a Preliminary.  
b Includes estimation for financial services; research and development services; professional and 
management consulting services; technical, trade -related, and other business services; and the rest 
of insurance services apart from cargo.  
c Negative indicates an increase; positive indicates a decrease.  
Source:  Central Bank.  
1.4  Developments in Trade and Investment  
1.4.1   Trends and patterns in merchandise and services trade  
1.29.   While trade continues to play an important role in the economy, trade in goods and services 
as a proportion of GDP followed a non -linear trend, falling from 188% in 2016 to 166% in 2018, 
before going up in 2019 at 174% and declining to 169% in 2020. Exports of hydrocarbons, which 
are much more volatile and highly impacted by demand shock s than non -hydrocarbons, represented 
a quarter of total exports (not including re -exports) in 2020 (Table 1.3). Exports of hydrocarbons 
contracted by 36% in 2020, mainly driven by a fall in crude oil and petroleum products, as global 
demand decreased due t o the COVID -19 pandemic. Gas exports remained relatively resilient in 2020 
but they accounted for only a small share of hydrocarbon exports. Exports of non -hydrocarbons 
were less affected, contracting by 5%, which prevented total exports from decreasing dr astically. Of 
total hydrocarbon exports in 2020, crude oil accounted for 48%, followed by petroleum products 
(37%) and gas (14%) . At the time of the previous Review in 2016, the difference between crude oil 
and petroleum products' shares of hydrocarbon exp orts was larger , with shares at 54% and 33%, 
respectively.  
1.30.   The composition of non -oil exports during the review period remained stable overall, as shown 
in Chart 1.2. The authorities did not provide detailed oil export data to the Secretariat, thus only 
non-oil export is presented in Charts 1.2 and 1.3 (Table A1.1 and Table  A1.2). Precious stones and 
metals and pearls continued to be the main drivers of non -oil exports, followed by machinery and 
electrical equipment. Combined, these two categories make up for around half of total non -oil 
exports. Transport equipment was the third -largest export category in 2016, replaced in 2020 by 
base metals and articles thereof. On the import side, the top three import categories in both 2016 
and 2020 were machinery and electrical equipment; precious stones and metals and pearls; and 
transport equipment (Table A1.3).  
1.31.   Considering the importance of trade in precious stones  and metals  to the UAE economy, 
especially in the context of diversification from oil revenues (in 2020 , trade in precious stones and 
metals and pearls amounted to almost USD  100 billion), sector -specific measures were taken during 
the review period. The Cabinet adopted three initiatives to make the UAE a world leader in the gold 
sector in terms of industry , quality, and services: (i)  the Federal Gold Trading Platform, on which 
buyers and sellers can carry out gold transactions in an electronic marketplace; (ii) the UAE Good 
Delivery Standard, which comprises a set of rules and technical matters assessing th e properties of 
traded gold in accordance with rules for risk -based due diligence in the supply chain of gold and 
precious metals; and (iii) the UAE Bullion Market Committee, which is headed by the Ministry of 
Economy and oversees the UAE Good Delivery Sta ndard to enhance the credibility of Emirati gold 
and support its promotion.64 Trade in precious stones and metals is considered as a high -risk sector 
in terms of money laundering, terrorist financing, and human rights abuses. In a 2020 report, the 
Financia l Action Task Force noted the significant risks facing the UAE gold trading activity, and 
welcomed the newly announced policies intended to implement best practices.65 The main feature 
of the country's ambitions to become a gold trade hub is the Dubai Mult i Commodities Centre, which 
 
64 Information provided by the authorities.  
65 FATF (2020), United Arab Emirates' Measures to Combat Money Laundering and Terrorist Financing , 
April. Viewed at: https://www.fatf -gafi.org/countries/u -z/unitedarabemirates/documents/mer -uae-2020.html .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  offers an industry cluster for the entire gold value chain from research to trade and investment.66 In 
2020, gold was by far Dubai's top -traded commodity (AED 213 billion, followed by telecom at 
AED 153 billion).67 The Dubai Mul ti Commodities Centre (DMCC free zone) is the only entry and exit 
point for rough diamonds in the country.68 
Chart 1.2 Production composition of merchandise trade by HS section, 2016 and 2020  
 
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
 
66 DMCC, Our Gold Services . Viewed at: https://www.dmcc.ae/gateway -to-trade/commodities/gold . 
67 Dubai Customs, Trade  Statistics  2020. Viewed at: 
https://www.dubaicustoms.gov.ae/en/TradeStatistics/Pages/TradeStatistics2020.aspx .  
68 Information provided by the authorities.  
Chart 1.[UAE]
Production composition of merchandise trade by HS sections, 2016 and 2020
2016 2020
Non-oil exports including re -exports (f.o.b.)
Base metals and 
articles thereof
8.3%Transport 
equipment
7.4% Other 16.0% 
Chemicals 
5.2%Mineral 
products
4.7%
Plastics and 
rubber 
5.0%
Precious 
stones and 
metals, 
pearls
26.7%Machinery, 
electrical 
equipment
26.8%
Total:   USD 151.7 billion Total:  USD 168.3 billion
Imports (c.i.f.)
Machinery, 
electrical 
equipment 
27.3%Precision 
instruments 2.2%
Plastics and 
rubber 
2.5%Chemicals 
5.9%
Precious 
stones and 
metals, 
pearls
22.1%Vegetable 
products
3.0%
Chemicals 
6.3%
Base metals 
and articles 
thereof 
6.1%Machinery, 
electrical 
equipment 
28.2%Transport
equipment
8.2%Other 18.6%
Plastics and 
rubber 
2.7%
Precious 
stones and 
metals, 
pearls
24.5%Precision 
instruments 2.4%
Total:   USD 260.4 billion Total:   USD 213.8 billion
WTO Secretariat calculations, based on trade statistics provided by the authorities; and 
Federal Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en.Vegetable 
products 
3.2%Mineral 
products
3.5%
Other 17.6%
Transport
equipment
13.2%
Base metals 
and articles 
thereof 
6.0%Base metals and 
articles thereof
7.8%Transport 
equipment
8.5% Other 16.5% 
Source: Precious 
stones and 
metals, 
pearls
30.6%Plastics and 
rubber 
5.0%Chemicals 
4.0%
Machinery, 
electrical 
equipment
24.1%WT/TPR/S/ 423 • United Arab Emirates  
 
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  1.32.   As an important trad ing hub, the UAE exchanged with around 200 countries and customs 
units in 2020.69 The normalization of relations with Israel in August 2020 and the end of the severing 
of ties with Qatar in January 2021 should open new trade and investment opportunities.  
1.33.   In 2021, the Government unveiled several plans to promote trade in the next years and 
decades. In June, the UAE Cabinet approved the National Agenda for Non -Oil Export Development, 
whose goals are to increase exports by 50% in the coming years and to acces s 25 new markets (the 
authorities did not provide information on the expected completion date or on the identity of the 
25 new markets).70 A few months later, the Government unveiled: (i)  the Projects of the 50, which 
include partnerships with eight econom ies around the world71, to increase the UAE's current 
AED 257 billion trade volume with these countries by an additional AED 40 billion; and (ii)  the 10x10 
programme to increase the UAE's annual exports by 10% to 10 countries.72 These countries were 
chosen  based on their economic importance to the UAE, opportunities for bilateral trade growth, the 
extent to which trade will focus on UAE priority exports sectors, and the potential for investment in 
the selected countries.73 The authorities indicate that the National Agenda for Non -Oil Export 
Development and the Projects of the 50 trade -related plans are independent but complementary.  
1.34.   The geographic structure of non -oil exports shifted during the review period. In 2016, the 
main destination of non -oil exports was India, followed by the Kingdom of Saudi Arabia and the 
Islamic Republic of Iran. Four years later, the Kingdom of Saudi  Arabia became the largest 
destination for non -oil exports and India was only the fourth -largest export destination (Tables A1.4 
and A1.5). A large share of exports is directed towards UAE's regional partners in the Gulf and Asia. 
This trend of greater regional integration grew in the past few years, with UAE exports to the 
Kingdom of Saudi Arabia doubling between 2017 and 2018, while e xports and re -exports to other 
GCC countries also grew significantly.74 In September 2021, the UAE unveiled its 10 guiding 
principles for the next 50 years, the fifth being good relations with its neighbours to ensure stability, 
notably through trade and e conomic relations.  
1.35.   The UAE's main import partners in 2020 were China (18.4%, increasing its share compared 
to 2016), the European  Union (14.3%, in decline), and India and the United  States (each at 7.7%, 
in decline) (Table  A1.6). China is not only the UAE' s top import partner, but its share of total non -oil 
UAE exports also doubled during the review period. In the context of the Belt and Road Initiative, 
China seeks to engage with the UAE as a key trade partner.75 China imports mostly oil and natural 
gas, a nd exports textiles, light industrial products, and machinery to the Federation. Agreements to 
boost the development of the Jebel Ali Port in Dubai and Port Khalifa in Abu Dhabi, thanks to Chinese 
investments, illustrate the reinforcement of trade ties bet ween the two countries ( Section 4. 3.4.2).76 
At the emirate level, China was by far the main trade partner (imports and exports included) of 
Dubai, totalling AED 142 billion, followed by India at AED 89 billion.77 Data available at the continent 
level for 2 019 demonstrate that Asia is by far the largest trade partner of Dubai (AED  838 billion), 
followed by Europe (AED 242 billion) and Africa (AED 167 billion).78 
1.36.   The share of Africa in total UAE imports nearly doubled between 2016 and 2020, from 8.8% 
to 16.9% . In early 2021, the Dubai Week in Africa – Kenya forum led to increased trade and 
 
69 Information provided by the aut horities.  
70 Emirates News Agency  (2021), "UAE Cabinet Approves National Agenda for Non -Oil Export 
Development", 27  June 2021.  
71 Ethiopia,  India,  Indonesia, Israel, Kenya, the Republic of Korea, Turkey, and the United Kingdom.  
72 China, the United Kingdom, t he Netherlands, Italy, the Russian Federation, Poland, Luxembourg, 
Australia, New  Zealand, and Indonesia were selected as the 10 key countries. Viewed at: 
https://www.wam.ae/en/details/13953029669 02. 
73 Information provided by the authorities.  
74 Ministry of Economy  (2019) , Annual Report 2019 , pp. 34 and 36. Viewed at: 
https://www.moec.gov.ae/documents/20121/302471/MOE_Annual%20Economic%20Report_2019_.pdf/5c673
75e-893f-d435-53c0-bab3c f723a36 . 
75 Emirates New s Agency  (2019), "UAE Is a Key Component of Belt and Road Initiative, Says Top 
Chinese Official", 11 November 2019.  
76 Watanabe, L. (2019), "The Middle East and China's Belt and Road Initiative", CSS Analyses in Security 
Policy , No. 254. Viewed at: https://css.ethz.ch/content/dam/ethz/special -interest/gess/cis/center -for-
securities -studies/pdfs/CSSAnaly se254 -EN.pdf .  
77 Dubai Customs, Trade Statistics 2020.  Viewed at: 
https://www.dubaicustoms.gov.ae/en/TradeStatistics/Pages/TradeStatistics2020.aspx . 
78 Dubai Customs, Trade Statistics 2019 . Viewed at: 
https://www.dubaicustoms.gov.ae/en/TradeStatistics/Pages/TradeStatistic s2019.aspx . WT/TPR/S/ 423 • United Arab Emirates  
 
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  investment partnerships between the two countries.79 A 2022 edition is planned to be launched, with 
another African country not yet determined.80 The UAE notably plans to in crease its exports to Africa 
of plastics, rubber, and sugar.81 Trade with Africa is mainly led by the Emirate of Dubai, which 
registers 85% of total UAE non -oil trade.82 Direction of merchandise trade per partner is detailed in 
Chart 1.3.  
1.37.   Trade in services  is relatively diversified in the UAE compared to other Middle East and North 
Africa (MENA) countries.83 During the review period, total exports of services increased from 
USD 65.6 billion in 2016 to USD  90.3 billion in 2019 before decreasing sharply in 20 20, suffering 
from the impact of the pandemic, to USD  62.1 billion (Table 1.3). Main exports of services in 2016 
were transport ; travel ; and information , computer , and telecommunications . These categories 
remained in the top three in 2020, although travel surpassed transport. On the import side, imports 
of services in 2016 totalled USD  83.8 billion, increased to USD  88.2 billion in 2019, and fell to 
USD 59.5 billion in 2020. Main types of services imported in 2016 and 2020 were freight and 
insurance,  travel, and transport.84 
 
79 Emirates News Agency  (2021), "UAE, Kenya to Bolster Economic Cooperation", 8 June 2021.  
80 Information provided by the authorities.  
81 Dubai Chamber of Commerce and Industry and International Trade Centre  (2019) , "UAE Has Potential 
to Double Exports to Africa: Analysis", 27 October 2019. Viewed at: https://www.dubaichamber.com/whats -
happening/chamber_news/uae -has-potential -to-double -exports -to-africa -analysis . 
82 Dubai Chamber of Commerce and Industry  (2021) , "Webinar Showcas es Main Advantages of Doing 
Business in Africa", 5 April 2021. Viewed at: https://www.dubaichamber.com/whats -
happening/c hamber_news/webinar -showcases -main-advantages -of-doing -business -in-africa .  
83 Mazarei, A. (2019), "Efforts of Oil Exporters in the Middle East and North Africa to Diversify Away 
from Oil Have Fallen Short", Peterson Institute for International Economics , April 2019, p. 3. 
84 Central Bank  of the UAE (2016) , Annual Report , p. 36, and Annual Report 2020 , p. 26. WT/TPR/S/ 423 • United Arab Emirates  
 
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  Chart 1.3 Direction of merchandise trade, 2016 and 2020  
 
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
1.4.2   Trends and patterns in FDI  
1.38.   The UAE is home to 45 free zones, designed to attract foreign investments through various 
incentives (see Section 3.3.1 for  a detailed analysis of free zones' legislation and incentives). Around 
half of them are located in Dubai, with the rest distr ibuted mainly among Abu Dhabi, Sharjah, and 
Ras Al Khaimah. They are an integral part of the UAE's strategy to be a predominant trade and 
investment hub. Around 8% of the total number of companies registered in the UAE are operating 
Chart 1.[UAE]
Direction of merchandise trade, 2016 and 2020
2016 2020
Non-oil exports including re -exports (f.o.b.)
GCC 
20.8%Other 5.6%
United States
3.2%
Africa 11.7 %Saudi Arabia, 
Kingdom of
13.0%India  
6.8%China 
4.8%
Europe 
18.6%GCC 
24.7%Iraq 7.8%Iran, Islamic 
Republic of 
2.7%Hong Kong, China 
4.6%
Other Asia 9.6%
EU-27
7.7%
Switzerland 5.9%
Turkey 3.5%
Other Europe 1.5%Other GCC 
1.8%
State of 
Kuwait 4.2%
Oman 5.8%Asia 
25.8%
Total:   USD 151.7 billion Total:  USD 168.3 billion
Imports (c.i.f.)
Asia 
44.7%
United States
9.7%GCC 5.3%Europe 
23.9%India  
8.7%
Africa 8.8%
EU-27 
17.1% Other Europe
6.8%Other Asia
14.7%
Europe 
20.3%China 18.4%India  
7.7%
GCC 5.6%Asia 
42.6%
United 
States 
7.7%Other  
6.9%Japan
4.4%
Other Asia 
12.1%
EU-27 
14.3%
Other Europe
6.0%Africa 16.9%
Total:   USD 260.4 billion Total:   USD 213.8 billionChina 16.2%United States
3.4%
Africa 
10.1%
Source:Other 
7.6%Japan
5.1%EU-27
7.5%China 2.8%
Europe 
17.5%Iraq 6.1%
Saudi Arabia, 
Kingdom of
8.7%Other 8.2%
WTO Secretariat calculations, based on trade statistics provided by the authorities; and 
Federal Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en. Iran, Islamic 
Republic of
8.6%
Asia 
25.4%
Switzerland 5.5%
Turkey 2.3%
Other Europe 2.2%Oman 4.1%State of Kuwait 
3.3%Other GCC 
4.7%India 8.8%Hong Kong, China 
3.3%
Other Asia 10.6%WT/TPR/S/ 423 • United Arab Emirates  
 
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  in the free zones, and the zones accounted for about 36% of total imports in 2018 (latest data 
available) and 64% of non -oil exports in 2020.85 
1.39.   Despite the COVID -19 pandemic, FDI flows in the UAE rose to USD  19.9 billion in 2020, a 
11.2% increase compared to inflows in 2019. For  the first time since 2013, the UAE recorded a net 
inflow of FDI in 2020.86 Oil and gas investment deals were the main drivers of FDI. Although natural 
resources transactions drove inward investments, 53% of FDI directed towards Dubai in the first 
half of 2020 were in medium - and high -tech sectors such as pharmaceuticals.87 In total, FDI inward 
stock increased from USD  119 billion in 201 6 to USD  151 billion in 2020, while FDI outward stock 
jumped from USD 110.5  billion to USD 204 billion (Table 1.4) . 
Table 1.4 FDI flows, 2016 -20 
Year 2016  2017  2018  2019  2020  
FDI flows (USD billion)      
 
 In the UAE  9.6 10.4 10.4 17.9 19.9 
 Abroad  15.7 14.1 15.1 21.2 18.9 
FDI stock (USD billion)       
 In the UAE  119.1  121.6  127.9  131.0  150.9  
 Abroad  110.5  124.4  166.8  184.8  203.7a 
a Estimated.  
Source:  UNCTAD, World Investment Report, Country Fact Sheet: United Arab Emirates . Viewed at: 
https://unctad.org/topic/investment/world -investment -report . 
1.40.   In 2019, the UAE was in the top 25 worldwide of host economies for FDI inflows, ranking 22nd, 
and 13th worldwide for FDI outflows.88 The plan outlined in the Projects of the 50 is to increase total 
FDI outflows by 14% by 2030. In addition, targeted partner countries should see FDI from the UAE 
grow by 24% by 2030. The authorities indicate that these goals integrate into the National Agenda 
for Foreign Direct Investment ( Section 2.4).  
 
 
 
85 Balance of payments data provided by the authorities for imports and data for non -oil exports 
available at: Central Bank  of the UAE (2020) , Annual Report , p. 26.  
86 Haque, K. (2021), "The UAE Saw a Net FDI Inflow in 2020", Emirates NBD Bank , 3 May 2021.  
87 UNCTAD, World Investment Report 2021 , p. 50. 
88 UNCTAD, World Investment Report 2021 , p. 5. WT/TPR/S/ 423 • United Arab Emirates  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  The United Arab Emirates (UAE) is a constitutional federation made up of seven Emirates: 
Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Umm Al Quwain, and Ras Al Khaimah. Pursuant to the 
Federal Constitution, established in 1971 and made permanent in 1996, th e Federation of the UAE 
has exclusive legislative and executive jurisdiction over an array of governmental matters, including 
foreign affairs; security and defence; nationality and immigration; education; public health; 
currency; federal taxes, duties, and  fees; banking; postal, telephone, and other communications 
services; air traffic control and licensing of aircraft; and labour relations. The matters that are not 
under the jurisdiction of the Federation fall within the purview of each Emirate. There have  been no 
changes in the political system of the UAE since the last Review.  
2.2.  The UAE Government relies on five federal authorities to discharge its functions, i.e. the Federal 
Supreme Council, the President of the Federation, the Council of Ministers, the Fe deral National 
Council, and the Federal Judiciary.1 
2.3.  The Federal Supreme Council (FSC) is composed of the rulers of each of the seven Emirates. 
It is the highest constitutional body and has both executive and legislative powers. It is responsible 
for formu lating policies at the federal level, sanctioning federal legislation, and ratifying international 
agreements and treaties. The FSC elects the President and Vice President from among its members, 
for renewable five -year terms. Furthermore, the FSC is respo nsible for approving the appointments 
of the Prime Minister, the President, and the judges of the Federal Supreme Court.  
2.4.  The President of the Federation is the chief of state2 and the Supreme Commander of the UAE 
Armed Forces. The President has the power to convene and preside over the meetings of the FSC. 
The President has responsibility for signing and promulgating laws, decrees, and decisions 
sanctioned by the FSC. The President appoints the Prime Minister3, with the consent of the FSC, and 
the Council  of Ministers.  
2.5.  Headed by the Prime Minister, the Council of Ministers is the executive authority of the 
Federation and is entrusted with implementing federal policies, both domestic and foreign, across 
all government portfolios.4 Its responsibilities also  include drawing up the annual budget and the 
final accounts, preparing draft decrees and decisions, issuing regulations to implement federal laws, 
and overseeing the implementation of federal legislation and international treaties and agreements. 
One of t he main functions of the Council of Ministers is to initiate the drafting of federal laws and 
submit them to the Federal National Council before submitting them to the President for presentation 
to the FSC. Laws must be published in the Official Gazette wi thin two weeks from the date of their 
promulgation and enter into force one month after their publication, unless otherwise prescribed.  
2.6.  The Federal National Council (FNC) is a unicameral consultative body comprising 40  members: 
20 are appointed by the rule rs of the Emirates, while the other 20 are indirectly elected. The number 
of seats assigned to each Emirate depends on its population. FNC members serve for four -year 
terms, which may be renewed. The FNC examines new draft legislation and may propose 
amend ments to it, but it has no power to veto laws or initiate the drafting of new laws. The 
Government must inform the FNC of any international treaty or agreement concluded by the UAE. 
The FNC is empowered to call and question Ministers regarding their perfor mance. In the most recent 
FNC election in October 2019, 13 men and 7 women were elected. Elections are based on individual 
candidates, as there are no political parties in the UAE.  
2.7.  At the federal level, the judicial power is vested in the Federal Judiciary. There are also local 
judicial authorities at the emirate level, which have jurisdiction in all matters not assigned to the 
 
1 Federal Constitution, Article  45. 
2 Currently, the President of the UAE is the ruler of Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan. He 
was elected to this posi tion on 3 November 2004.  
3 The current Prime Minister is Sheikh Mohammed bin Rashid, ruler of Dubai, who was also elected Vice 
President of the UAE by the FSC on 5 January 2006.  
4 As of July 2021, there were 32 members in the UAE Council of Ministers, incl uding 9 women.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Federal Judiciary by the Constitution.5 The legal syste m of the UAE is based on both Sharia h and 
civil courts.  
2.8.  The Federal Judiciary is presided by the Federal Supreme Court. It also includes the Courts of 
First Instance, the Courts of Appeal, and the UAE Public Prosecutors. The independence of the 
judiciary is enshrined in the Federal Constitution.6 
2.9.  The Federal Supreme Court is the highest judicial authority in the UAE. It consists of a president 
and four judges, all appointed by the President of the UAE upon approval by the FSC.7 The Federal 
Supreme Court has exclusive jurisdiction to decide on the constitutionality of federal laws and local 
legislation enacted by the Emirates , interpret the provisions of the Constitution , handle inter -emirate 
disputes and those between Emirates and the Federal Go vernment , hear cases involving Ministers 
and senior federal officials , and adjudicate on crimes directly affecting the interests of the Federation, 
among other attributions.8 Its decisions are final and binding.  
2.10.   The federal Courts of First Instance have j urisdiction over civil, commercial, administrative, 
criminal, and labour lawsuits.9 Sharia h courts are competent to hear personal status cases. Rulings 
by a Court of First Instance may be challenged before a Court of Appeal on factual and/or legal 
grounds . Judgements by a Court of Appeal may be challenged only on matters of law before the 
Federal Supreme Court or the Court of Cassation. In both cases, the decisions are final and binding.  
2.11.   Under the Code of Civil Procedure, the Minister of Justice (or the he ad of a local judiciary) 
may refer cases to one or more circuits headed by a single judge and assisted by two local or 
international experts. According to the authorities, this facilitates the speedy settlement of 
commercial disputes, especially those of a n international character.  
2.12.   As per the Constitution, each Emirate may choose either to incorporate its courts into the 
federal judicial system or to keep its own local judicial system. The Emirates of Sharjah, Fujairah, 
Ajman, and Umm Al  Quwain have chosen to transfer the jurisdictions of their local courts to the 
federal Courts of First Instance10, whereas the Emirates of Abu Dhabi, Dubai, and Ras Al  Khaimah 
maintain their own court systems. In addition, Abu Dhabi, Dubai, and other Emirates have set up 
comm ercial courts to cater to the needs of their thriving business sectors.  
2.13.   At the local level, the Emirates have their own government structures, which operate 
alongside and in coordination with the Federal Government. The Emirates of Abu Dhabi, Dubai, 
Ras Al Khaimah, Sharjah, Ajman, and Umm Al  Quwain have their own Executive Councils and 
departments, which function like ministries. Also, Abu Dhabi and Sharjah have National Consultative 
Councils, which perform functions similar to those of the FNC; in other Em irates, the ruler's office 
(diwan) is the channel for citizens to submit their interests and concerns to their government.  
2.14.   Over the past years, the Federal Government has stepped up efforts to improve its decision -
making processes and the efficiency of its  services. In July 2020, a new government structure was 
approved, aimed at making it more agile, nimble, and flexible. Table 2.1 shows the recent changes.  
Table 2.1 Changes made to the structure of the UAE Gov ernment in July 2020  
Ministry  Changes  
Ministry of Industry and 
Advanced Technology  • New Ministry  
• Merger of the Emirates Authority for Standardization & Metrology with the 
Ministry  
• Transfer of the Advanced Sciences portfolio to the Ministry  
• Transfer of the Industry portfolio from the Ministry of Energy  
 
5 Chapter V of Part Four of the Federal Constitution lays out the general principles governing the 
judiciary at the federal and emirate levels. Federal Law No.  10 of 2019 regulates the judicial relations between 
the federal and local judicia ry authorities; it established the Commission for the Unification of Federal and Local 
Judicial Principles.  
6 Federal Constitution, Article 94.  
7 Federal Law No.  10 of 1973 organizes the Federal Supreme Court and regulates the formation of the 
federal Publ ic Prosecution office.  
8 Federal Constitution, Article  99. 
9 Federal Law No.  6 of 1978 established the federal Courts of First Instance and the Courts of Appeal.  
10 The transfer of jurisdictions is enshrined in Federal Law No.  6 of 1978.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Ministry  Changes  
Ministry of Energy and 
Infrastructure  • Merger of the Ministry of Energy and the Ministry of Infrastructure  
• Transfer  of the Zayed Housing Programme to the Ministry  
• Merger of Federal Authority for Land and Maritime Transport with the 
Ministry  
Ministry of Economy  • The Ministry has three ministers:  Minister of Economy; Minister of State 
for Entrepreneurship and Small and Medium Enterprises; and Minister 
of State for Foreign Trade  
Ministry of Culture and Youth  • Transfer of the National Media Council (except the Emirates News Agency) 
to the Ministry  
• Transfer of the Federal Youth Authority to the Ministry  
• The Ministry has two ministers: the Minister of Culture and Youth; and the 
Minister of State for Youth  
Ministry of Education  • Transfer of the National Qualifications Authority to the Ministry  
Ministr y of Community 
Development  • Transfer of Happiness and Wellbeing portfolio to the Ministry  
Emirates News Agency  • Brought under the Ministry of Presidential Affairs  
Federal Authority for 
Electricity and Water  • Attached to the Emirates Investment Authority  
Emirates Post  • Attached to the Emirates Investment Authority  
Emirates Transport  • Attached to the Emirates Investment Authority  
Emirates Real Estate 
Corporation  • Attached to the Emirates Investment Authority  
National Council for Social 
Security Fund  • New fund under the umbrella of the Emirates Investment Authority  
Insurance Authority  • Merged with the Central Bank of the UAE  
Securities and Commodities 
Authority  • Transfer of the operational mandates to license d financial and securities 
markets in the country  
Federal Competitiveness and 
Statistic Authority  • Attached to the Ministry of Cabinet Affairs  
• Renamed as name Federal Competitiveness and Statistic Centre  
Federal Authority for 
Government Human 
Resources  • Attached to the UAE Prime Minister's Office  
Media Office of the UAE 
Government  • New entity  
Source:  Information provided by the authorities.  
2.15.   In the Corruption Perceptions Index of Transparency International, the UAE ranked 21st (of 
180) in 2020, improving from the 24th position in 2016.11 The UAE has a comprehensive legal 
framework against corruption, laid out across various laws and codes of conduct. The Federal Penal 
Code criminalizes active and passive bribery, embezzlement, and abuse of functions, and other 
anti-corruption and anti -fraud laws are enforced. The UAE has ratified the United Nations Convention 
against Corruption.  While the UAE generally provides a business -friendly environment and efficient 
government services, some concerns have been raised about weak dispute resolution me chanisms 
and insolvency laws. Some analysts have characterized resolution of commercial disputes as difficult 
and uncertain, as court proceedings may be lengthy and costly, particularly in disputes involving 
politically influential local parties.12 In this regard, the authorities indicate that the UAE has 
developed an efficient commercial arbitration system to overcome the possible limitations of court 
proceedings in terms of their time length and costs, and that there are currently several institut ions 
administering commercial arbitration in the UAE. They also highlight the enactment of Federal Law 
No. 6 of 2018 on Arbitration, which contains provisions to streamline enforcement of arbitral awards 
(Section 2.4 ) and amendments to the Civil Procedure Code to facilitate recognition and enforcement 
of foreign arbitral awards.  
2.16.   During the review period, the UAE continued to implement Vision 2021, a development 
strategy launched in 2009 with the aim of propelling sustainable growth and positioning the UAE 
among the best countries in the world in relation to key global indicators, including ease of doing 
business, innovation, entrepreneurship, income per capita, and quality of living standards.13 One of 
the six national priorities established in the Vision 20 21 National Agenda is to transition to a 
 
11 Transparency Inte rnational, Corruption Perceptions Index 2020 . Viewed at: 
https://www.transparency.org/en/cpi/2020/index . 
12 GAN, Risk & Compliance Portal. United Arab Emirates Corruption Report . Viewed at: 
https://www.ganintegrity.com/portal/country -profiles/united -arab-emirates/ . 
13 UAE Vision 2021, Competitive Knowledge Economy . Viewed at: 
https://www.vision2021.ae/en/national -agenda -2021/list/economy -circle. WT/TPR/S/ 423 • United Arab Emirates  
 
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  competitive knowledge -based economy by promoting innovation and research and development 
(R&D), strengthening the regulatory framework, and encouraging high value -adding sectors.14 The 
strategy also seeks to foster entrepreneurship, increase participation of Emiratis in the workforce, 
improve the business environment, and attract foreign investment. The authorities consider the 
following among their main achievements under Vision  2021: an extensive legislative reform  
involving more than 50 new laws; improvements in the rule of law and the judicial system; more 
efficient delivery of government services; enhanced ability of the Government to adapt to changes; 
and positioning the UAE in the top ranks of a number of world  or regional indicators, including 
financial competence and stability, provision of mobile Internet broadband, ease of doing business, 
and attraction of foreign direct investment.15 
2.17.   In line with its Vision 2021 strategy, the UAE hosted Expo 2020 Dubai from  October 2021 to 
March 2022.16 The event was organized around the central theme named "Connecting Minds, 
Creating the Future", and three subthemes (opportunity, mobility, and sustainability), with the 
purpose of helping forge innovative partnerships to pro vide solutions to major global challenges, 
particularly for the benefit of future generations. Twenty -five million visitors were expected to 
participate in Expo 2020.  
2.18.   In 2020, the Government launched UAE Centennial 2071, a development plan spanning over 
five decades. The plan aims at investing in future generations by equipping them with the skills and 
knowledge needed to face rapid changes. It encompasses a national strategy to strengthen the UAE's 
reputation and soft power; ensure that government revenue is diversified, relying less on oil; focus 
education on advanced IT and engineering; build Emirati values for future generations; and enhance 
community cohesion. In the economic area, UAE Centennial 2071 seeks to establish a diversified 
economy by increasi ng productivity, supporting national companies to increase their competitiveness 
in global markets, and investing in R&D in promising sectors. Other objectives are to nurture a 
generation of Emirati inventors and scientists, export advanced products and se rvices through 
incentive programmes, and support the UAE's leading companies globally.17 
2.19.   At the core of most government plans is the transformation of the economy towards high -tech 
sectors, new technologies, and their application to the UAE economy as illu strated by the UAE 
Artificial Intelligence Strategy, the UAE Fourth Industrial Revolution Strategy, the UAE National 
Space Strategy, and the Talent Attraction and Retention Strategy, to name a few. Moreover, in 2021 
the Government launched the UAE Industri al Strategy (also called Operation 300bn), one of the 
main pillars of the UAE development agenda, which aims to raise the industrial sector's contribution 
to the GDP from AED 133 billion to AED 300 billion by 2031.  
2.20.   Individual Emirates can also establish th eir own development strategies within the framework 
of the federal plan. The Abu Dhabi Economic Vision 2030 focuses on diversification on a large range 
of sectors, including, inter alia, metal production, healthcare, civil and military aerospace, and 
telecommunications. The Dubai Industrial Strategy 2030 targets six industrial sectors: aerospace, 
maritime, pharmaceuticals and medical equipment, aluminium and fabricated metals, fast -moving 
consumable goods, and machinery and equipment.18 The Fujairah 2040 Pl an focuses on enhancing 
housing and transportation infrastructure facilities.19 
2.2  Trade Policy Formulation and Objectives  
2.21.   The formulation of trade policy is under the responsibility of the Ministry of Economy, in 
coordination with other ministries and the lo cal governments, and in consultation with the business 
community. The Ministry of Economy proposes to the Government policies to enhance trade and 
 
14 The five other priorities are to achieve: (i)  a cohesive society and preserved identity; (ii)  a safe and 
fair public judiciary; (iii)  a first -rate education system; (iv)  a world -class healthcare system; and 
(v) sustainable environment and infrastructure.  
15 The National  (2021) , "Sheikh Mohammed bin Rashid's Message after 15 Years as Prime Minister", 
3 January  2021. Viewed at: https://www.thenationalnews.com/uae/government/sheikh -mohammed -bin-
rashid -s-message -after-15-years -as-prime -minister -1.1139652 . 
16 Originally scheduled for 2020 -21, Expo 2020 was postponed due to the COVID -19 pandemic.  
17 Government of Dubai Media Office, Sheikh Mohammed bin Rashid Launches UAE Centennial 2071 
Plan. Viewed at: https://sheikhmohammed.ae/en -us/news/details?nid=24731&cid= . 
18 2021 Dubai Industrial Strategy 2030. Viewed at: 
https://mbrsgcdn.azureedge.net/cmsstorage/mbrsg/files/f1/f1a41082 -ac7e-4b40-8f55-072c777c19dc.pdf . 
19 UAE Government, Fujairah 2040 Plan. Viewed at: https://bit.ly/3htS4Gz . WT/TPR/S/ 423 • United Arab Emirates  
 
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  promote exports; it is responsible for negotiating trade agreements and monitoring their 
implementation, and representing the UAE in international organizations and conferences related to 
trade and investment. Its portfolio also includes the enactment and modernization of economic 
legislation, the creation of a pro -business environment, the promotion of investmen t, and the 
regulation of competition and of the small and medium -sized enterprises (SMEs) sector, as well as 
the protection of consumer and intellectual property rights.20 
2.22.   Since July 2020, as part of its structural reorganization, the Ministry of Economy h as had 
three  Ministers: the Minister of Economy; the Minister of State for Entrepreneurship and Small and 
Medium Enterprises; and the Minister of State for Foreign Trade. The latter is responsible for 
overseeing all activities related to the formulation of  foreign trade policy, including consultations 
with the business community, and ensuring compliance of the UAE with its international 
obligations.21 
2.23.   The UAE's trade and trade -related policies have been guided by the Vision 2021 strategy. 
Accordingly, some of the main objectives pursued by the Ministry of Economy during the period 
under review include encouraging the diversification of the economy towards industries based on 
knowledge and innovation (e.g. aerospace, artificial intelligence), enhancing the co mpetitiveness of 
SMEs and national entrepreneurship, creating an enabling environment for trade and investment, 
strengthening the competitiveness of the UAE in external markets and developing trade relations 
with other countries, and enhancing protection o f consumer and intellectual property rights.  
2.24.   The private sector provides inputs to trade policy formulation through the Federation of UAE 
Chambers of Commerce and Industry (UAE FCCI), which groups all the chambers of commerce and 
industry in the UAE. The U AE FCCI reviews and provides inputs on trade -related draft laws and 
policies proposed by government bodies, in consultation with the member chambers. Among other 
functions, the UAE FCCI promotes Memoranda of Understanding between the UAE and other 
countrie s, enhances cooperation with regional and international organizations, and disseminates 
information related to commerce and industry. The member chambers act as focal points for the 
business community and represent, support, and protect their interests. Th e chambers provide a 
range of services such as company and trade registration, provision of information on investment 
opportunities in the country, liaison with businesses abroad, issuance and authentication of 
certificates of origin and other commercial d ocuments, and oversight of quality standards of goods.  
2.3  Trade Agreements and Arrangements  
2.3.1   World Trade Organization (WTO)  
2.25.   The UAE became a member of the WTO in April 1996; previously, it had joined the GATT in 
March 1994. The UAE accepted the Protocol concerning the Agreement on Trade Facilitation in 
April 2016, and the Protocol Amending the TRIPS Agreement in January 2017. T he UAE is a party to 
the Information Technology Agreement. It is neither a party nor an observer to the Agreement on 
Government Procurement. Currently, the UAE participates in the Joint Statement Initiatives on 
e-commerce and investment facilitation for de velopment.  
2.26.   At the Eleventh Session of the Ministerial Conference (Buenos Aires, December 2017), the 
UAE reiterated its strong commitment to and support of the WTO, acknowledging the organization's 
role in facilitating international trade and investment wit hin a rules -based system. Regarding some 
of the main negotiating issues on the table, the UAE called for more transparency in the use of 
agricultural export restrictions and supported an extension of the Decision on Public Stockholding 
for food security re asons to include all developing countries. On fisheries subsidies, the UAE 
emphasized the need to provide for policy space for developing countries to develop their fisheries 
sector, while promoting sustainable fishing resources. On non -agricultural market  access, the UAE 
supported the continuation of the reform process on the basis of an agreed work programme. In 
trade in services, the UAE favoured further liberalization, while supporting developing countries' right 
 
20 Ministry of Econo my. Viewed at: 
https://www.economy.gov.ae/english/Ministry/Pages/VissionAndMission.aspx . 
21 Ministry of Economy. Viewed at: 
https://www.economy.gov.ae/english/Ministry/MinistrySectors/ForeignTradeSector/Pages/default.aspx . WT/TPR/S/ 423 • United Arab Emirates  
 
- 32 - 
 
  to regulate in accordance with their dev elopment strategies. Overall, in the UAE's view, the 
development dimension should remain at the core of WTO negotiations.22 
2.27.   In the aftermath of the COVID -19 outbreak, the UAE cosponsored the Ministerial Statement 
on COVID -19 and the Multilateral Trading Sy stem aimed at ensuring the continued flow of vital 
medical supplies and other essential goods and services across borders during the health crisis.23 
The UAE also adhered to a Joint Statement by a number of Members committing to not impose 
export prohibiti ons or restrictions on foodstuffs purchased for non -commercial humanitarian 
purposes by the World Food Programme.24 The UAE endorsed the Communiqué of the Arab Trade 
Ministerial Meeting in Riyadh of 31  October  2021, where the group of Arab countries stated their 
views on common issues in preparation for the Twelfth WTO Ministerial Conference (MC12).25 
2.28.   The Trade Negotia tions and Organizations Department within the International Trade Sector 
of the Ministry of Economy is the focal point in the UAE for all WTO matters and free trade 
agreements (FTAs). The Department follows the activities of all WTO bodies; coordinates wit h 
relevant ministries, government institutions, and the private sector to develop the UAE's position on 
the multilateral trade agenda; and oversees the negotiating teams. It also monitors the 
implementation of the UAE's commitments under the WTO and the FT As. 
2.29.   The UAE maintains a WTO National Committee (NC) that provides advice and support to the 
UAE negotiating team on issues under discussion at the WTO (Box 2.1). The NC is chaired by the 
Minister of Economy, and groups the representatives of key public and  private economic players in 
the country. It is composed of five sub -committees (or technical teams): (i)  market access for 
agricultural and non -agricultural products; (ii)  intellectual property rights; (iii)  protection of 
domestic production; (iv)  trade i n services; and (v)  trade facilitation and government procurement. 
In addition,  in accordance with the Agreement on Trade Facilitation, the UAE set up a National Trade 
Facilitation Committee in 2014.  
Box 2.1 Functions of the National Committee  
• Drafting the UAE's position on the WTO's multilateral negotiations agenda (agricultural and 
non-agricultural goods, services, intellectual property, and trade facilitation) and other issues under 
discussion across all WTO b odies and committees.  
• Formulating the UAE's position on other matters relevant to the WTO that may affect the country's rights 
and obligations under the Organization or the country's commercial and economic interests.  
• Requesting relevant authorities to pre pare studies of the expected effects of the results of multilateral 
negotiations on the UAE's economy and economic feasibility studies on specific issues, such as joining 
multilateral agreements sponsored by the WTO, and setting the terms of reference for such studies.  
• Proposing initiatives for the UAE on any issues related to international trade agreements in force within 
the framework of the WTO.  
• Discussing and studying proposals regarding further trade liberalization that may affect the UAE's 
obligations  under the WTO.  
• Creating technical teams for negotiations (e.g., Trade in Goods, Trade in Services, Trade Facilitation, 
Intellectual Property, and Government Procurement) to address developments on these issues in the 
WTO.  
Source:  Information provided by  the authorities.  
2.30.   During the review period, the UAE participated in three disputes under the WTO dispute 
settlement mechanism: two as a complainant, and one as a defendant. In the first case as a 
complainant (DS538), the UAE challenged Pakistan's anti -dump ing measures on certain types of 
polypropylene film. The panel was established on 29  October  2018, and its report was circulated on 
18 January  2021. Pakistan appealed the panel's report on 25  February  2021.26 The second dispute 
where the UAE was a complain ant (DS576) referred to certain measures imposed by Qatar 
concerning goods from the UAE. In this case, a panel was established on 28  May 2019 but was never 
composed. On 8  August  2019, the UAE requested the Chair of the Dispute Settlement Body to 
circulate a communication indicating that it no longer considered necessary to pursue its complaint, 
 
22 WTO document WT/MIN(17)/ST/38, 13 December 2017.  
23 WTO documents WT/GC/212, 5 May 2020; WT/GC/212/Rev.1, 29 May 2020; and WT/GC/212/Rev.2, 
31 July 2020.  
24 WTO document WT/L/1109, 21 January 2021.  
25 WTO document WT/GC/236, 2 November 2021.  
26 For further information, see WTO document series WT/DS538.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  due to Qatar's withdrawal of the measures at issue.27 In the third case (DS526), Qatar challenged 
certain UAE measures related to trade in goods and services and tra de-related aspects of intellectual 
property rights. A panel was established on 22  November 2017 and composed on 
3 September  2018. On 18  January  2021, Qatar requested the Panel to suspend its work in the 
context of facilitating an amicable settlement betwee n the parties. The work of the Panel was 
suspended on 15  January  2021.28 
2.31.   In applying the Gulf Cooperation Council (GCC) tariffs, the UAE makes no distinction between 
WTO Members and non -WTO Members.  
2.32.   Table 2.2 shows a list of notifications submitted by the UAE to different WTO committees and 
bodies during the review period. As at end -October 2021, some notifications were pending in areas 
such as import licensing, rules of origin, trade -related aspects of intellectual property rights, and 
services.  Since then , the UAE has submitted notifications under the Agreement on Agriculture, the 
GATS, the Agreement on Rules of Origin, and the TRIPS Agreement.  
Table 2.2 Notifications to the WTO, July 2015 -October 2021  
Agreement/Article  Requirement  Latest notifications – Symbol, date  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidies (ES:1)  G/AG/N/ARE/15, 02/04/2020  
Article  18.2  Domestic support (DS:1)  G/AG/N/ARE/17, 07/04/2020  
GATT  1994  
Article  XVII:4(a)  State trading activities  G/STR/N/4 and 7/ARE, 
G/STR/N/10 -18/ARE, 28/05/2020  
Agreement on Trade Facilitation   
Articles 15 and 16  Category commitments  G/TFA/N/ARE/1/Add.1, 01/06/2021; 
G/TFA/N/ARE/1/Corr.1, 19/09/2019; 
G/TFA/N/ARE/1, 09/09/2019  
Agreement on the Implementation of Article  VI of the GATT  1994  
Article  16.4 – 
Semi-annual  Anti-dumping actions taken within 
the preceding six months 
(01/01/2021 -30/06/2021)  G/ADP/N/3 57/ARE, 07/10/2021  
Article  16.5 Competent authorities  G/ADP/N/14/Add.54, 21/04/2021  
Article  18.5 Laws and regulations  G/ADP/N/1/ARE/2/Suppl.1, 05/10/2018; 
G/ADP/N/1/ARE/2, 25/09/2015  
Agreement on Subsidies and Countervailing Measures  
Article  25.1 and GATT 
Article  XVI:1  Subsidies (new and full notification)  G/SCM/N/284/ARE, 23/02/2016  
Article  25.11, 
Semi-annual  Countervailing actions (1  January -
30 June 2021)  G/SCM/N/379/Add.1, 14/10/2021  
Article  25.12  Competent authorities  G/SCM /N/18/Add.54, 21/04/2021  
Article  32.6 Laws and regulations  G/SCM/N/1/ARE/2/Suppl.1, 05/10/2018; 
G/SCM/N/1/ARE/2, 28/09/2015  
Agreement on Safeguards  
Article  12.1(a)  Initiation of an investigation  G/SG/N/6/ARE/3/Suppl.1, 20/01/2021; 
G/SG/N/6/ARE/3, 24/10/2019  
Article  12.1(b)  Finding of serious injury or threat 
thereof – Evidence  G/SG/N/8/ARE/3/Suppl.1, 
G/SG/N/10/ARE/3, G/SG/N/11/ARE/4, 
12/05/2021; G/SG/N/8/ARE/3, 
23/07/2020  
Article  12.1(b) and 
Article  9, Footnote 2  Finding of seriou s injury or threat 
thereof – Proposal to impose a 
measure  G/SG/N/10/ARE/2/Suppl.1, 
G/SG/N/11/ARE/3/Suppl.1, 14/06/2019; 
G/SG/N/10/ARE/2, G/SG/N/11/ARE/3, 
05/04/2019  
Article  12.4 and 
Article  9, Footnote 2  Before taking a provisional measure 
referred to in Article  6 G/SG/N/7/ARE/1/Suppl.1, 01/11/2016; 
G/SG/N/7/ARE/1, G/SG/N/11/ARE/1, 
21/10/2016  
Article  9, Footnote 2  Investigation terminated with no 
safeguard measure  G/SG/N/9/ARE/1, 08/09/2021  
Article  12.6 Laws and regulations  G/SG/N/1/ARE/2/Suppl.1, 05/10/2018; 
G/SG/N/1/ARE/2, 28/09/2015  
Agreement on Sanitary and Phytosanitary Measures  
Article  7, Annex B  Emergency temporary measures  G/SPS/N/ARE/239, 22/09/2021  
 
27 For further detail, see WTO document series WT/DS576.  
28 For more information, see WTO document series WT/DS526.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Agreement/Article  Requirement  Latest notifications – Symbol, date  
Agreement on Technical Barriers to Trade  
Article  2.9.2 Technical regulations  G/TBT/N/ARE/516, 18/10/2021  
Articles 2.9.2 and 5.6.2  Technical standards – Controls  G/TBT/N/ARE/476, 16/06/2020  
Article  5.6 Technical standards – Conformity/ 
Certifications  G/TBT/N/ARE/402, 16/02/2018  
Regional Trade Agreements  
Paragraph 4(a), 
Enabling Clause;  
Article  V:7(a), GATS  GCC-Singapore RTA  WT/COMTD/N/45/Rev.1, 
S/C/N/807/Rev.1, 14/07/2015  
Source:  WTO Secretariat . 
2.3.2   Regional and preferential agreements  
2.3.2.1   Gulf Cooperation Council (GCC)  
2.33.   The UAE is a member of  the GCC, a political and economic alliance created in 1981, that also 
comprises the Kingdom of Bahrain, the State of Kuwait, Oman, Qatar, and the Kingdom of 
Saudi  Arabia. The GCC's main objectives are to enhance regional cooperation and integration in all  
economic, social, and cultural fields. The highest authority of the organization is the Supreme Council 
of the GCC, composed of the heads of the member States.  
2.34.   In 2001, the GCC Supreme Council adopted a revised Economic Agreement between the 
member States , which called for the formation of a customs union.29 In 2003, the GCC Customs 
Union was launched with the implementation of a GCC Custom Law, the Unified Guide for Customs 
Procedures at the First Point of Entry, and a common external tariff (CET) of 0% or 5% for most 
tariff lines. After a transition period, the GCC Customs Union was formally finalized on 
1 January  2015.30 However , some differences remain in the implementation of the CET (e.g. on 
alcohol products31), as each GCC member has the right to keep a list of prohibited and restricted 
goods.32 Moreover, GCC member States maintain customs checkpoints between each other for SPS 
and standards controls and other purposes (e.g. statistics, and prevention of piracy and commercial 
fraud). Imports that are prohibited in some GCC member States and permi tted in others are not 
allowed to transit through the States in which they are prohibited.  
2.35.   The Gulf Common Market (GCM) was officially launched in January 2008. One of its main 
goals is to achieve equal treatment among the citizens of the GCC member States  in several 
economic fields, including freedom to engage in economic activities, investment, and property 
ownership. The full implementation of the GCM remains a work in progress.  
2.36.   The GCC member States have achieved cooperation in several economic areas su ch as 
agriculture, energy, telecommunications, and transportation. They have also advanced in the 
development of common legislation by adopting some 17 standard laws, including in areas such as 
customs; anti -dumping, countervailing, and safeguard measures;  patents and trademarks 
regulation; consumer protection; industrial law; standards and metrology; SPS matters (plant and 
veterinary quarantine, seeds and seedlings, fertilizers and soil enhancers, and practice of veterinary 
professions); and maritime law.  
2.37.   Likewise, GCC member States have set up common institutions dealing with trade and 
investment issues, including the Technical Secretariat for Anti -Dumping, the GCC Standardization 
Organization, the Gulf Investment Organization, the Commercial Arbitration C entre, the Patents 
 
29 In 2006, the Kingdom of Saudi Arabia notified the Agreement under Article  XXIV of the GATT  1994 
(WTO document WT/REG222/N/1, 20 November 2006), bu t subsequently changed the notification to come 
under the Enabling Clause (WT/REG222/N/1/Corr.1 and WT/COMTD/N/25, 31 March 2008). In 2009, the 
Agreement was re -notified under Article  XXIV:7(a) of the GATT  1994 (WT/REG276/N/1/Rev.1, 
17 November  2009).  
30 A factual presentation of the GCC Customs Union was prepared by the WTO Secretariat ( WTO 
document WT/COMTD/RTA/9/1 -WT/REG276/1 , 21 March 2018).  
31 For example, the UAE maintains a 50% tariff on imports of alcoholic beverages, while Oman applies a 
100% tariff on alcohol products.  
32 The list of prohibited imports maintained by each GCC member State can be found in Annex 2 to 
WTO document WT/REG276/1. The products concerned include mainly pork and pork products, ivory, poppy 
seeds, hemp, opium, coca leaf, asbesto s, certain used pneumatic tyres, and live purebred swine.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Office, the GCC Intellectual Property Training Centre, and the Technical Office for 
Telecommunications. In the field of taxation, the GCC member States began rolling out value added 
tax in 2018. Other recent examples of regional integrat ion include a common law for real estate 
owners, a common Environmental Program and a cultural strategy for 2020 -30. 
2.38.   In June 2017, the UAE, the Kingdom of Saudi Arabia, and the Kingdom of Bahrain severed 
diplomatic, trade, and travel ties with Qatar, inclu ding restricting access by land, sea, and air. The 
restrictions were lifted in January 2021.  
2.39.   As stipulated in the 2001 Economic Agreement, GCC member States collectively negotiate 
trade and economic agreements with third parties. So far, the GCC has conclu ded a regional trade 
agreement with Singapore, and an agreement with the member States of the European Free Trade 
Association (EFTA).33 
2.3.2.2   GCC-Singapore Free Trade Agreement (GSFTA)  
2.40.   The GSFTA entered into force in September 2013 and was notified to the WTO in  2015 under 
the Enabling Clause and GATS Article  V.7(a).34 The Agreement covers trade in goods, customs 
procedures, rules of origin, technical regulations and standards, trade in services, government 
procurement, intellectual property, electronic commerce,  movement of natural persons, and dispute 
settlement.  
2.41.   Upon entry into force of the GSFTA, Singapore committed to apply duty -free treatment to all 
products originating in the GCC. The GCC member States agreed to the immediate elimination of 
tariffs on 99% o f their tariff lines for imports originating in Singapore, with most of the remaining 
tariffs to be removed five years after the entry into force of the Agreement. Certain goods were 
excluded from the tariff elimination.35 In services, both parties committ ed to liberalize various 
sectors beyond their GATS commitments. Among the services sectors covered by the GSFTA are 
business, professional, communication, construction and engineering, distribution, financial, 
transport, tourism, health -related, and educat ion services. The parties agreed to negotiate 
investment issues at a later stage.36 
2.3.2.3   GCC-EFTA Free Trade Agreement  
2.42.    The free trade agreement between the GCC and EFTA entered into force in July 2014, but its 
notification was pending as at end -October 2021.37 Its coverage includes trade in goods, trade in 
services, government procurement, competition policy, and dispute settlement. Certain topics, such 
as intellectual property rights and investment, were left for subsequent negotiations after the entry 
into fo rce of the Agreement.  
2.43.   Regarding trade in goods, the GCC agreed to eliminate most tariffs on EFTA -originating 
products after a transition period of five years. Upon entry into force of the Agreement, the EFTA 
States granted duty -free access to their respect ive markets to industrial goods, fish, and marine 
products originating in the GCC. The Agreement also provides for tariff concessions for processed 
agricultural products. Basic agricultural products are covered by bilateral agreements, which form 
an integr al part of the Agreement.  
 
33 The EFTA member States are Iceland, Liechtenstein, Norway, and Switzerland.  
34 WTO documents WT/COMTD/N/45/Rev.1 and S/C/N/807/Rev.1, 14 July 2015.  
35 These goods are identified as Category C in Ann ex 1 to the GSFTA. They include, inter alia , live swine 
and swine meat and products; different types of frozen, dried, and preserved fish; preserved crustaceans; 
durum wheat and wheat flour; poppy and hemp seeds; coca leaf; cannabis; opium; cocaine; beer a nd alcoholic 
beverages; tobacco and tobacco products; asbestos; mineral or chemical fertilizers; re -treaded tyres; worn 
clothing; casing, tubing, and drill pipes used in drilling for oil or gas; air conditioning machines; and batteries.  
36 For more informat ion see UAE Ministry of Economy, GCC-Singapore FTA (GSFTA) . Viewed at: 
https://www.economy.gov.ae/english/Ministry/MinistrySectors/Fo reignTradeSector/Pages/Singapore -
GCCFTA.aspx ; and Ministry of Trade and Industry Singapore, What You Need to Know About Singapore's Free 
Trade Agreements . Viewed at: https://www.mti.gov.sg/ -/media/MTI/Images/Improving -
Trade/FTA_Booklet_Final.pdf . 
37 WTO Regional Trade Agreements Database, EFTA -GCC. Viewed at: 
http://rtais.wto.org/UI/P ublicShowMemberRTAIDCard.aspx?rtaid=462 .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  2.44.   The chapter on trade in services contains provisions on national treatment and market access 
and uses a positive list approach for scheduling commitments. Both parties agreed to go beyond 
their obligations under the GATS. The GCC member States undertook commitments in 11 GATS 
sectors. The UAE accepted additional commitments in professional, environmental, construction, 
health, tourism, transport, telecommunications, and maritime services.38 
2.3.2.4   Pan-Arab Free Trade Area (PAFTA)  
2.45.   The UAE is a member of PAFTA, established in 1998 with the objective of creating an Arab 
Free Trade Area (also known as the Greater Arab Free Trade Area (GAFTA)) by 2005, through the 
gradual elimination of trade barriers among its members.39 The main body responsi ble for the 
implementation of PAFTA is the Economic and Social Council of the League of Arab  States. The PAFTA 
agreement was notified by the Kingdom of Saudi Arabia to the WTO under Article  XXIV of GATT  1994 
in 2006.40 
2.46.   The elimination of tariffs among PAFT A members was enforced in January 2005, except for 
some products for reasons such as public health, safety, morals, and the protection of the 
environment. Efforts are still being pursued to eliminate non -tariff barriers, including customs and 
administrativ e procedures at the borders, and transit fees.  
2.47.   During the review period, PAFTA members continued to engage in the Beirut Round of 
Negotiations on the Liberalization of Trade in Services among Arab States, launched in 2004. As a 
result, in February 2017, th e UAE along with eight other PAFTA countries agreed on a schedule of 
commitments for trade in services.41 The UAE ratified the agreement to liberalize trade in services 
among Arab States on 10  March  2020. The authorities indicate that the UAE's schedule of 
commitments under this agreement is similar to the UAE's initial offer in services in the WTO Doha 
Round  of trade negotiations.  
2.3.3   Other agreements and arrangements  
2.48.   Within the framework of the GCC, the UAE has engaged in negotiations to conclude FTAs with 
several countries and economic groupings, including Australia, China, the European  Union, India, 
Japan, the  Republic of Korea, the Southern Common Market (MERCOSUR), New  Zealand, Pakistan, 
and Turkey.42 The negotiations with Japan and Australia were notified to the WTO in 2006 and 2007, 
respectively.43 None of the above negotiations has been formally concluded.  Currently, all 
negotiations are suspended, except for those with China and Pakistan. The negotiations for an FTA 
with the European  Union started in 1990 but were halted in 2008, and replaced with a Dialogue on 
Trade and Investment issues in 2017.44 In Sep tember 2021, the UAE announced plans to bilaterally 
pursue comprehensive economic agreements with eight countries (including India, the Republic of 
Korea, the United Kingdom, and Turkey) on trade, foreign direct investment, and other sectors such 
as touris m.45 
 
38 UAE Ministry of Economy, GCC-EFTA FTA . Viewed at: 
https://www.economy.gov.ae/english/Ministry /MinistrySectors/ForeignTradeSector/Pages/GCC -EFTA-FTA.aspx ; 
and EFTA, Gulf Cooperation Council (GCC) . Viewed at: https://www.efta.int/free -trade/free -trade -
agreements/gcc . 
39 PAFTA m embers include the GCC countries plus Algeria, Egypt, Iraq, Jordan, Lebanon, Libyan Arab 
Jamahiriya, Morocco, Palestine, Sudan, Syrian Arab Republic, Tunisia, and Yemen. The Comoros, Djibouti, 
Mauritania, and Somalia are accession candidates.  
40 WTO document WT/REGG223/N/1, 20 November 2006.  
41 The other PAFTA countries were the Kingdom of Saudi Arabia, Qatar, Oman, Morocco, Lebanon, 
Egypt, Yemen, and Sudan. Economic and Social Commission for Western Asia (ESCWA) document 
E/ESCWA/EC.6/2019/6, 14 May 2019. Viewed at: https://digitallibrary.un.org/record/3880405?ln=fr . 
42 UAE Ministry of Economy, Free Trade Agreements . Viewed at: 
https://www.economy.gov.ae/english/Ministry/MinistrySectors/ForeignTradeSector/Trade -Negotiations -
WTO/Trade -Agreements/Pages/default.aspx . 
43 WTO Regional Trade Agreements Database. Viewed at: 
http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?membercode=784 . 
44 European Commission, Gulf Region . Viewed at: https://ec.europa.eu/trade/policy/countries -and-
regions/regions/gulf -region/ . 
45 Cornwell, A. (2021) , "UAE Wants Quick Trade Talks, Some Deals Signed in 6 -12 Months", Reuters , 
15 September 2021. Viewed at: https://www.reuters.com/world/middle -east/uae -wants -quick-trade -talks-
some -deals-signed -6-12-months -2021-09-14/; and Mohamed, H. (2021) , "UAE, S. Korea  Agree to Resume WT/TPR/S/ 423 • United Arab Emirates  
 
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  2.49.   The UAE maintains a bilateral FTA with Morocco, in force since 2003. The agreement was 
notified to the WTO in June 2019 under the Enabling Clause.46 It covers provisions on trade in goods 
only. The parties committed to the annual reduction of customs tariffs and taxes having equivalent 
effect at a rate of 10 percentage points more than the rate applied in the PAFTA framework. They 
also agreed to eliminate all non -tariff barriers upon entry into force of the FTA and to not apply any 
new non -tariff measu res thereafter. The UAE authorities indicate that this agreement, although still 
in force, has become irrelevant since the full implementation of GAFTA.  
2.50.   The UAE is currently eligible for unilateral trade preferences under the Generalized System of 
Preferen ces (GSP) schemes of Australia, Belarus, the Russian  Federation, and Kazakhstan. Table 2.3 
depicts the UAE's use of GSP preferences in 2020. The UAE does not grant GSP treatment to other 
countries.  
Table 2.3 Use of GSP preferences, 2020  
(AED)  
Country  No. of certificates issued  Value of exports  
Australia  60 1,603,912  
Belarus  7 175,367  
Russian  Federation  121 4,393,453  
Kazakhstan  0 0 
Source:  Information provided by the authorities.  
2.4  Investment Regime  
2.51.   Attracting foreign direct investment (FDI) is an essential element of the UAE's long -term 
development plans to diversify its economy, promote the development of the private sector, and 
consolidate the country's position as a trade and investment hub for a large geographic area. 
Accordingly, since the last Review, several legislative changes have been implemented to further 
open the economy to FDI and create a more favourable environment for foreign investors, including 
the ena ctment of legislation on FDI, and extensive amendments to the Commercial Companies  Law 
(see below).  
2.52.   During the period under review, the Ministry of Economy adopted the National Agenda for 
Foreign Direct Investment covering both inward and outward FDI. The national agenda is in line with 
the strategic objectives of the UAE Centennial 2071 of fostering a diversified and competitive UAE 
economy, based on knowledge and innovation. As regards inward FDI, the national agenda aims at 
enhancing the UAE's global pos ition as an attractive investment destination, by creating a business -
conducive environment through the enactment and modernization of relevant legislation, and at 
encouraging investments from targeted countries in "promising sectors" related to innovation , 
leadership, and advanced industries. Indeed, the idea is to shift from an approach based on 
promotion only to an approach that identifies target countries, sectors, and specific investment 
opportunities. With respect to investment abroad, the national ag enda seeks to strengthen the 
international presence of the UAE's leading companies, open new opportunities for Emirati investors 
in targeted sectors and markets, foster technology transfer, and protect the interests of Emirati 
investors abroad. Box 2.2 pre sents the pillars and target sectors established in the national agenda 
for both inward and outward FDI.  
2.53.   The Investment and Talent Attraction Department within the Ministry of Economy develops 
policies aimed at enhancing the UAE's attractiveness to both fo reign investment and talents. The 
Department's tasks include working with local authorities to simplify and unify FDI registration and 
licensing procedures; receiving and studying requests from foreign investors, based on the initial 
approval of the local authorities; settling disputes through conciliation between investors and the 
local authorities; granting incentives in accordance with the laws regulating foreign investment; 
providing support to investors; disseminating information about the investment e nvironment and 
investment opportunities in the UAE ; and publishing investment data. The Department is also 
responsible for proposing policies to attract international skills in strategic sectors of the economy.  
 
Negotiations on Multilateral Trade Agreement", Emirates News Agency , 11 September 2021. Viewed at: 
https://www.wam.ae/en/details/1395302968970 . 
46 WTO document WT/COMTD/RTA1/N/1, 1 1 July 2019.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Box 2.2 National Action Agenda for Foreign Direct Investment  
Inward FDI  
 
Pillars : 
1. Enhancing the attractiveness of the UAE's investment environment  
2. Attracting foreign investment from targeted countries  
3. Attracting foreign investment in spe cific and targeted sectors  
 
Target sectors : 
Financial technology, industry, healthcare, retail and e -commerce markets, medical and wellness tourism, 
aerospace and space tourism, supply chains, agricultural technology, entertainment, broadcasting and 
games, logistics, education, renewable energy, information and communication technology (ICT), water 
technology, genetics, and intelligent mobility  
 
Outward FDI  
 
Pillars : 
1. Strengthening the international presence of the UAE through the lead ership of Emirati companies abroad  
2. Directing Emirati investments to targeted countries and sectors  
3. Supporting and protecting the interests of Emirati investors abroad  
 
Target sectors : 
Blockchain, robotics, smart buildings, renewable energy generation/water supply, electronic 
healthcare/pharmaceuticals, cyber security, education technology, carbon capture technology, sustainable 
transportation, Internet of Things and sensors, 3D printi ng, consumer companies, housing and adult care 
organizations, health facilities, treatments and devices, G5 infrastructure, transportation, agricultural 
technology, augmented/virtual reality, artificial intelligence, e -commerce platforms, fintech, subscrip tion 
based products/digital content, and sustainability in food consumption  
Source:  Information provided by the authorities.  
2.54.   The UAE's foreign investment regime is mainly governed by the Federal Commercial 
Companies Law (CCL)47, the Commercial Agencies La w, and the federal Industry Law. Within the 
framework of federal legislation, each Emirate retains the authority to establish its own regulations 
on FDI, licensing procedures, and investment incentives. In September 2018, a new federal law on 
foreign inves tment (FDI Law) was enacted, paving the way for the easing of ownership restrictions 
on FDI. In 2020, amendments to the CCL provided for further liberalization of the foreign investment 
regime. GCC nationals and GCC companies are exempted from FDI restrict ions, provided they are 
not in partnership with a non -GCC investor.  
2.55.   Prior to the enactment of the new legislation, foreign investors wishing to set up an onshore 
company in the UAE (outside the free zones) were required to have a local partner with 51% of the 
share capital; foreign companies operating through a branch office were required to have a UAE 
national agent; and joint stock companies were subject to board representation restrictions.  
2.56.   The FDI Law, promulgated on 23  September  201848, allowed foreign  investors to own up to 
100% of the share capital in UAE companies operating in specific sectors. In March 2020, a Cabinet 
Resolution approved a "positive list" of the economic sectors eligible for up to 100% foreign 
investment, covering 122 activities in the agriculture, manufacturing, and services industries. The 
Cabinet also issued a "negative list" of activities for which restrictions on foreign investment 
remain.49 
2.57.   Federal Decree -Law No.  26 of 2020 amending the Commercial Companies Law was 
promulgated on 27  September  2020. It entered into force on 1  June 2021 and repealed the FDI Law 
of 2018. The Decree -Law introduced wide -ranging changes to the CCL aimed at enhancing the 
foreign investment regime and modernizing the regulations on commercial companies.  Most of the 
 
47 The CCL (Federal Law No.  2 of 2015) applies to commercial companies established in the UAE, branch 
offices of foreign companies, and activities of free zone companies in the UAE customs territory, where such 
activities are allowed. It does n ot apply to the hydrocarbon sector or state -owned companies.  
48 Federal Decree -Law No.  19 of 2018. Now repealed.  
49 The negative list included oil exploration and production; security; military; banking and financial 
activities; insurance; pilgrimage and Umr ah services; certain recruitment activities; water and electricity; 
fishing; post, telecommunications, and audio -visual services; road and air transport; printing and publishing; 
commercial agency; medical retail; and blood banks and venom banks.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  amendments apply to limited liability companies (LLCs) and joint stock companies (JSCs), which are 
the two legal forms available for foreign investors in the UAE.  
2.58.   A major amendment to the CCL was the abolishment of the general requirement for a UAE 
company to have 51% Emirati ownership, thus allowing foreign investors to establish without a local 
partner and own 100% of UAE companies in most economic sectors, except in certain activities 
deemed to have a "strategic impact".50 As required by Dec ree-Law No.  2651, on 30  May 2021, the 
Cabinet issued Resolution No.  55 of 2021 setting out a list of activities having a strategic impact. 
These activities are security, defence, and activities that have a military nature; banks, exchange 
houses, finance c ompanies, insurance activities, and money printing; telecommunications; 
pilgrimage (Hajj) and Umrah services; Qur'an memorization centres; and services related to 
fisheries.52 Investors wishing to engage in activities with a strategic impact must obtain pr ior 
approval from the relevant competent authorities, which may impose foreign ownership and board 
participation restrictions. In the case of services related to fisheries, only 100% UAE ownership is 
permitted.  
2.59.   Other key amendments to the CCL were the removal of the obligation for branches and 
representation offices of foreign companies to have a local service agent with 100% UAE ownership, 
and the abolishment of the requirement for the chairperson and the majori ty of the board of a JSC 
to be UAE nationals. The changes to the CCL also relate to, inter alia , procedural aspects of general 
assembly meetings, amendment of articles of association, methods of settling disputes between 
partners, and flexibility in capita l reduction requirements for public JSCs.53 
2.60.   Decree -Law No.  26 grants the Department of Economic Development or the competent 
authority in each Emirate the power to set local ownership and board participation requirements for 
companies incorporated in their respective jurisdictions. Accordingly, the Emirates of Abu Dhabi and 
Dubai have each recently issued lists of commercial activities encompassing a broad range of sectors 
in which 100% foreign ownership is allowed.54 
2.61.   Under the Commerci al Agencies Law (Federal Law No.  18 of 1981), foreign principals are 
required to distribute their products in the UAE only through exclusive commercial agents, who may 
be appointed for the entire UAE territory or for a particular Emirate or group of Emirat es. Prior to 
the amendment of Federal Law No.  18 of 1981, only UAE nationals or companies wholly owned by 
UAE nationals could qualify for registration as commercial agents. Federal Law No.  11 of 2020, which 
entered into force on 1  June 2020, amended the Co mmercial Agencies Law. The most important 
amendment was to broaden the scope of the legal entities that can register as commercial agents 
by including public joint stock companies (PJSC) with at least 51% of their capital owned by UAE 
nationals, and privat e entities owned by a PJSC meeting the 51% ownership requirement.55 This 
change is expected to encourage local family businesses registered as commercial agents to convert 
their private companies into a PJSC in order to seek foreign equity investment witho ut losing their 
registered commercial agent status.56 
 
50 It shou ld be noted that Federal Decree No. 32  on Commercial Companies , which was adopted in 
September 2021 and entered into force in January 2022, has replaced the 2015 Commercial Companies Law in 
its entirety. This Decree confirmed the relaxation of foreign ownership restrictions introduced under Federal 
Decree No. 26 of 2020.  
51 Article  1 of the Decree -Law amending Article 10 of the CCL.  
52 Middle East Alliance, Legal Consultancy LLC, Provisions of Cabinet Resolution No. (55) of 2021 
Determining the Li st of Activities with Strategic Impact . Viewed at: https://www.mealc.org/post/cabinet -res-
no-55-of-2021-regarding -determ ining-the-list-of-activities -with-strategic -impact . 
53 Ministry of Economy, The Prominent Features and Incentives Granted to Investors on the Federal 
Decree Law No. (26) of 2020 regarding the New Amendments of the Federal Law No. (2) of 2015 on 
Commercial C ompanies . Document provided by the authorities.  
54 Sovereign Group  (2021) , "UAE Opens Up to 100% Foreign Ownership of Companies" , 30 June 2021. 
Viewed at: https://www.sovereigngroup.com/news -and-views/uae -opens -up-to-100-foreign -ownership -of-
companies/ ; and Economist Intelligence Unit  (2021), "Abu Dhabi Publishes List of Foreign Investment Sectors", 
25 May 2021. Viewed at: 
http://country.eiu.com/article.aspx?articleid=151057398&Country=United+Arab+Emirates&topic=Economy&s
ubtopic=Forecast&s ubsubtopic=External+sector . 
55 Federal Law No.  11 of 2020, Article  2. 
56 Steenkamp W. and Roberts, R. (2020), "Amendments to the UAE Commercial Agencies Law: 
Broadening the Scope", Al Tamimi & Co. , August. Viewed at: https://www.tamimi.com/law -update -
articles/amendments -to-the-uae-commercial -agencies -law-broadening -the-scope . WT/TPR/S/ 423 • United Arab Emirates  
 
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  2.62.   Under the Federal Industry Law, industrial projects must have 51% UAE ownership. The Law 
also requires projects to be managed by a UAE national or have a board of directors with a majority 
of UAE nation als. Exceptions to the Law include those provided for projects related to the extraction 
and refining of oil, natural gas, and other raw materials. The authorities indicate that the Federal 
Industry Law is currently being updated to allow 100% foreign owne rship of industrial projects, in 
line with the amendments made to the CCL.  
2.63.   To register and obtain a licence as an FDI project, investors must comply with several 
conditions, including minimum capital requirements, which vary depending on the economic activ ity, 
and participation in the UAE Emiratization programme, which requires companies to employ a certain 
percentage of Emirati citizens. The programme is administered by the Ministry of Human Resources 
and Emiratisation through the Tawteen Partners Club sch eme.57 
2.64.   The licensing departments and competent authorities of each Emirate are responsible for 
setting forth the conditions and procedures for the establishment and registration of FDI projects, 
as well as for specifying the required documents in accordanc e with federal and local laws. Generally, 
a foreign investor is required to obtain a preliminary approval from the local licensing authority, and 
thereafter apply for a licence for FDI from the local competent authority, usually the Department of 
Economic Development. The competent authority shall approve the application upon the fulfilment 
of the relevant conditions within five business days of the date of application or the fulfilment of the 
documents and information required.58 Expiring this time, the ap plication is deemed to be rejected.  
2.65.   Licensed foreign investment companies are entitled to the same treatment as national 
companies to the extent permitted by national legislation and international agreements to which the 
UAE is a signatory. Foreign compani es may repatriate profits, the proceeds of the liquidation or sale 
of their investment, and those arising from the settlement of disputes relating to their investment. 
An FDI project may not be expropriated in whole or in part, except for public interest a nd in exchange 
of fair compensation. A court judgement is required to confiscate, freeze, or restrict the funds of an 
FDI project. The right to benefit from any real estate allocated to an FDI project may not be 
cancelled, suspended, or restricted except i n the event of a violation of the licence conditions.59 
2.66.   Since the last Review, a new Corporate Bankruptcy Law was adopted and entered into force 
in December 2016.60 It applies to companies regulated by the CCL, most companies in the free trade 
zones, sole proprietorships, and civil companies engaged in professional businesses. The Law 
enables a creditor that is owed AED 100,000 or more to file bankruptcy proceedings against a debtor 
30 days after sending a written notification to the debtor. A main feature of the Law is that it 
decriminalizes "bankruptcy by default", requiring companies and their owners who have ceased to 
pay their debts for more than 30 days to initiate insolvency proceedings rather than face fines and 
potential imprisonment. The Law was am ended in 2019 and 2020. Among the latest amendments 
are new provisions to protect debtors during an emergency financial crisis, the existence of which is 
to be determined by the UAE Cabinet.61 This move towards a more flexible approach should make it 
easier for companies in the UAE to work through financial difficulties.  
2.67.   Land ownership regulation varies from Emirate to Emirate. For example, in Dubai, only UAE 
and other GCC nationals and companies fully owned by UAE and GCC nationals can own property 
anywher e in the Emirate. Non -UAE/GCC nationals and foreign companies can only own land in 
designated areas in the form of a freehold, a leasehold (for 99 years), or usufruct (including a 
 
57 UAE, Ministry of Human Resources and Emiratisation, Emiratisation Laws . Viewed at: 
https://www.mohre.gov.ae/en/laws -legislation/emiratisation -laws.aspx . 
58 UAE Government Portal, Foreign Direct Investment (FDI) . Viewed at: https://u.ae/en/information -
and-services/finance -and-investment/foreign -direct -investment . 
59 The a uthorities indicate that the said guarantees for foreign investment companies are found in the 
following laws: Federal Law No.  18 of 1993 Promulgating the Commercial Transactions Law, as amended; 
Federal Decree -Law No.  14 of 2018 Regarding the Central Bank  of the UAE  and Organization of Financial 
Institutions and Activities; Federal Decree -Law No.  20 of 2018 on Anti -money Laundering and Countering the 
Financing of Terrorism; Federal Law No.  20 of 2016 Regarding Pledge of Movable Properties in Guarantee of 
Debt, as well as local laws concerning ownership.  
60 Federal Decree -Law No.  9 of 2016.  
61 Federal Decree -Law No.  9 of 2016, Chapter  15. WT/TPR/S/ 423 • United Arab Emirates  
 
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  Musataha right62) for up to 50 years. Currently, there are over 30 designate d areas in Dubai. 
Likewise, Abu Dhabi has traditionally restricted ownership to UAE or GCC nationals, who may then 
lease the land to foreigners. However, in April 2019 the Abu Dhabi Government passed Law No.  13 
of 2019 amending the rules on real estate to allow foreign individuals and companies to own freehold 
property within certain investment areas for an unrestricted time -period. Also, under the Law, public 
JSCs have been granted the right to own a freehold interest in land and property anywhere in the 
Emirate of Abu Dhabi, provided that at least 51% of the company is owned by UAE nationals.  
2.68.   The UAE provides incentives to foreign investments located in free zones across the country, 
where foreign companies are allowed to have 100% ownership and enjoy a nu mber benefits, 
including exemption from customs duties and commercial levies, easy access to transport 
infrastructure, provision of energy at cheap rates, and other administrative and support services 
(Section 3.3.1).  
2.69.   As regards onshore investment, in addi tion to recent FDI liberalization measures, the 
authorities promote inward investments in high -tech industries including agriculture technology, the 
ICT sector, aerospace, FinTech, tourism, healthcare, and e -commerce. At the emirate level, 
investment facil itation and other administrative measures to attract FDI have been adopted in recent 
years. In 2017, Dubai implemented an "instant licence" that investors can obtain in a matter of 
minutes without a registered lease agreement, and with a one -year validity.  In 2018, Abu Dhabi 
introduced dual licences allowing free zone companies to operate outside the free zones and to 
participate in government tenders; in 2019, Abu Dhabi amended its real estate law to facilitate 
foreign ownership in designated investment ar eas. It also set up an investment office to execute a 
comprehensive strategy to attract FDI.63 In 2018, the Emirate of Sharjah allowed foreigners to 
purchase property without a UAE resident visa on a 100 -year renewable land lease basis.64 In 
addition, to s timulate the economy and attract FDI, the Emirates of Dubai and Abu Dhabi 
implemented a range of incentives, including cutting fees on certain government services, waiving 
fines, allowing the payment of fees on instalments, and licensing businesses without  physical 
locations for up to two  years.  
2.70.   The UAE does not maintain mandatory local content requirements, but it actively encourages 
Emirati and foreign investors to use domestic content or otherwise contribute to the development of 
the UAE economy. This is  done mainly through government procurement programmes, by granting 
preferences in tenders to companies that utilize local content and employ Emirati nationals, among 
other criteria. Such is the case of the Abu Dhabi Local Content Program65 and the recentl y launched 
National Value -Added Program (Section 3.3.6).  Moreover, as part of a comprehensive strategy to 
increase the contribution of the industrial sector to GDP, in March 2021 the UAE Government 
launched "Make It in the Emirates", an industrial brand id entity, to support domestic products and 
promote industrial competitiveness.66 
2.71.   The UAE is a member of the Multilateral Investment Guarantee Agency. It is also a contracting 
state to the Convention of the International Centre for the Settlement of Investmen t Disputes. Since 
2006, the UAE has been a party to the 1958 New York Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards.  
2.72.   The UAE's Arbitration Law (Federal Law No.  6 of 2018) became effective in June 2018. It 
follows the Model Law on  International Commercial Arbitration of the United Nations Commission on 
International Trade Law (UNCITRAL). The new law introduced, inter alia , a streamlined process to 
enforce domestic arbitration awards, and amendments to the Civil Procedure Code to fa cilitate the 
 
62 The rights of usufruct and Musataha are both forms of long -term lease, with the main difference being 
that the right of M usataha allows the holder to build or develop on the property of another person, while the 
right of usufruct does not.  
63 UNCTAD  (2019) , "Abu Dhabi Launches an Investment Office to Attract FDI ", Investment Policy 
Monitor , 7 February 2019. Viewed at: https://investmentpolicy.unctad.org/investment -policy -
monitor/measures/3365/united -arab-emirate s-abu-dhabi -launches -an-investment -office -to-attract -fdi. 
64 U.S. Department of State, 2020 Investment Climate Statements: United Arab Emirates . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/united -arab-emirates/ . 
65 Industrial Development Bureau, Abu Dhabi Local Content Program . Viewed at: 
https://idb.added.gov.ae/en/i ncentives/ADLC . 
66 UAE Government Portal, Become Our Partner,  Make It in the Emirates,  Viewed at: 
https://u.ae/en/information -and-services/business/uae -unified -industrial -brand -identity -make -it-in-the-
emirates . WT/TPR/S/ 423 • United Arab Emirates  
 
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  recognition of foreign arbitral awards. The authorities expect the implementation of the Arbitration 
Law will increase confidence in the country's judicial system and facilitate the speedy settlement of 
international commercial disputes. The a uthorities also emphasize the importance of conciliation and 
mediation as alternative means to settle commercial disputes. In this regard, they point out to 
Federal Law No.  17 of 2016 on Establishing Conciliation and Reconciliation Centres in Civil and 
Commercial Disputes (as amended by Law No.  5 of 2021) and Federal Law No.  6 of 2021 on 
Mediation for the Settlement of Civil and Commercial Disputes.67 
2.73.   The UAE maintains large networks of bilateral investment treaties (BITs) and Double Taxation 
Agreements (DT As), which it continued to expand during the review period to encourage strategic 
global partnerships. In total, the UAE has signed 101 BITs, of which 70 are in force. Since 2016, 
27 BITs have entered into force, with economies across all regions of the wo rld, including Greece, 
Japan, Kenya, Mexico, and Thailand. In 2019 and 2020, the UAE signed BITs with Brazil; Dominica; 
the Gambia; Gabon; Guinea -Bissau; Hong Kong, China; Indonesia; Israel; Sierra  Leone; and South 
Sudan. Some of these treaties have not ye t entered into force. Currently, the UAE has 135  DTAs, of 
which 104 are in force. Of these, 29 have entered into force since 2016, including the agreements 
with the United Kingdom, South  Africa, the Kingdom of Saudi Arabia, and other countries in Africa, 
Eastern Europe, and Latin America.68 Since June 2018, the UAE has been a signatory to the 
Multilateral Convention to Implement Tax Treaty -Related Measures to Prevent Base Erosion and 
Profit Shifting.  
 
 
67 These laws are based on the relevant UNCITRAL model laws. They contain, inter alia , provisions to 
speed up the settlement of commercial disputes through electronic platform s, hence also helping to ease the 
burden on courts.  
68 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  There have been no significant changes in the United Arab Emirates' customs legislation and 
institutional framework since the last R eview. The Gulf Cooperation Council (GCC) Common Customs 
Law and its Implementation Rules and Explanatory Note remain the basic legislation. The UAE 
implemented the GCC Common Customs Law by ratifying Federal Decree No.  85 of 2007 on the 
Common Customs Law  for the Arab States of the Gulf. GCC members apply common customs 
procedures and tariffs for imports from non -member States.  
3.2.  The Federal Customs Authority (FCA) of the UAE, established in 2003, defines customs policies 
and supervises their implementation by the separate customs authorities in each of the seven 
Emirates. These separate customs authorities are responsible for applying the GCC Common 
Customs Law and the Unified Guide for Customs Procedures at First Points of Entry.1 Customs 
departments at the emirate level are also allowed to define customs procedures as long as they are 
consistent with the Common Customs Law.2 The implementation of customs laws and procedures is 
therefore mostly identical across the seven Emirates,  and according to the authorities, the UAE is 
currently developing a national customs clearance system that is being rolled out across the local 
customs departments. Generally, trade procedures between the customs territory and customs 
warehouses of free z ones are similar to those between the customs territory and the rest of the 
world. Goods originating in a GCC member State or partial consignments of goods previously 
imported into the GCC from third countries can be moved across GCC member States using a 
statistical customs declaration.3 
3.3.  Importers require a trade licence issued from any of the Emirates, an importer number4, 
renewable annually, and have to register on the electronic clearance system, or alternatively use an 
authorized customs broker. Trad er licences can usually be requested online, for example, in the case 
of Dubai via the Dubai e -services portal . A licence for trading between free zones and the rest of the 
world is required from free zone authorities.  
3.4.  Customs declarations have to be submi tted electronically or physically using the customs 
clearance system . According to the authorities, the functionality of the system has been improved 
over the review period and, for example, allows firms to directly link their internal systems to the 
custo ms clearance system to transfer information, facilitating the submission of declarations and the 
management of data by users. Declarations are processed prior to arrival in most entry points, 
according to the authorities,  with goods also cleared prior to a rrival based on the documents 
submitted unless a physical inspection is required. All shipments are classified into customs clearance 
channels based on risk criteria applied automatically using the local customs risk management 
system that includes post -clearance audits.5 No consolidated information regarding the share of 
declarations classified according to the existing risk channels was available. Efforts are under way 
to share risk information between customs and other border agencies. As a result, 96% of customs 
declarations are cleared in less than two  minutes, according to the authorities. A system to request 
advance rulings on tariff classification, rules or origin, or customs valuation is being developed, 
according to the authorities, in line with t he GCC Unified Guide on Advance Rulings in 2020.6 Goods 
 
1 GCC Secretariat (2015), Unified Guide for Customs Procedures at First Points of Entry into the Member 
States of the Cooperation Council for the Arab States of the Gulf (GCC) . Viewed at: https://www.gcc -
sg.org/en -us/CognitiveSources/DigitalLibrary/Lists/DigitalLibrary/Customs/14356521 05.pdf .  
2 FCA, UAE Customs . Viewed at: https://fca.gov.ae/En/UAE -Customs/Pages/CustomsInUAE.aspx . 
3 FCA, Procedures and Steps for Implementation of the Customs Union of the GCC Stat es. Viewed at: 
https://www.fca.gov.ae/en/homerightmenu/pages/uniongccstates.aspx . A statistical declaration contains only 
a statistical export bill cleared from an exporting GCC country including a Makasa declaration (a set -off 
mechanism using an automatic duty transfer system based on electronic barcodes).  
4 According to the authorities, these are currently issued by each local customs authority, but efforts are 
under way to  establish a UAE -wide unified system.  
5 According to the authorities, some information in the system is exchanged between the local and 
federal levels.  
6 Secretariat General of the Cooperation Council for the Arab States of the Gulf (2020), Unified Guide o f 
Advance Ruling . Viewed at: 
https://fca.gov.ae/En/HomeRightMenu/Documents/UnifiedGuideOfAdvanceRuling.pdf .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  in transit, imported into customs warehouses or free zones, or using temporary admission schemes 
are not subject to customs duty, VAT, or excise duties. Since late 2017, the UAE has allowed for the 
use of the TIR Carnet by authorized transport operators at certain customs points to facilitate transit 
flows, including to or from neighbouring GCC countries or offshore free zones, and since June 2021, 
following amendments to the TIR convention, has allow ed for an electronic version of the TIR 
document.7 
3.5.  In October 2020, the FCA launched a new UAE Customs Gateway project.  According to the 
authorities, the customs gateway will be a national customs clearance system, which will be 
developed into a national single window and to date it integrates 25  government agencies across 
the UAE, providing a single access point for users of customs services. At the time of writing, the 
gateway encompassed a number of systems8, with others such as an inspection system to  be added 
later. While an e -statistics system introduced new comprehensive trade data collection, the 
circulation system connects 19 agencies, allowing for the exchange of circulars relating to product -
specific trade regulations.  
3.6.  To obtain a broker licence  in Dubai, an individual or company has to be registered with the 
Department of Economic Development and provide a guarantee of AED 50,000.9 Brokers licensed in 
one Emirate can operate across other Emirates without relicensing. Customs brokers operating i n 
other GCC countries are required to obtain a customs broker licence from each GCC country where 
they plan to operate. Licences are renewable each year.  
3.7.  In October 2016, the UAE started to pilot the UAE Authorized Economic Operators (UAEO) 
Program develop ed by the FCA based on international best practices such as the WCO's SAFE 
framework and the WTO's Agreement on Trade Facilitation.10 The AEO scheme, which replaced 
existing schemes such as the Golden Card Program, has been designed in a way that it could be 
applied by all GCC members and could allow for joint status recognition under a future unified AEO 
policy. Firms meeting the basic conditions such as being a UAE company involved with customs 
processes or part of international supply chains and not havi ng an AEO status revoked in the past 
three years can apply after completing a self -assessment regarding their operations. This is followed 
by a customs assessment of past compliance, financial viability, record keeping, and security. 
Approved applicants be nefit, for example, from dedicated customs contacts that also assist with 
coordination across government agencies, lower risk scores, reduced documentary requirements 
and audits, and benefit from priority services from customs and other government agencies . 
Participants are continuously monitored and are revalidated for the programme every three to five 
years.  
3.8.  As of June 2021, 84 companies had been approved for the UAEO Program, among them 1 small 
and medium -sized enterprise (SME).11 During the first quarte r of 2021, 76% of customs declarations 
at Dubai were submitted by AEOs. According to the authorities, participants in the AEO scheme 
benefit overall from lower clearance times (estimated to be 90% shorter) and lower costs. 
Participation in the UAEO Program  also facilitates imports in other countries as the authorities have 
signed mutual recognition agreements (MRAs) with the Republic of South Korea, the Kingdom of 
Saudi Arabia, and China. Other MRAs, for example with India and Indonesia, are under preparati on. 
3.9.  According to available trade facilitation indicators, the time and cost to import remain high 
compared to other high -income economies. The OECD's 2019 Trade Facilitation Indicators show an 
overall solid performance but also that the UAE lagged OECD cou ntries in relative terms in the areas 
of advance rulings (for further information see above), appeal procedures, internal and external 
 
7 Dubai Customs Policy No.  52/2021 of 5  May 2021 on I mplementation of the TIR Carnet (International 
Road Transport). Viewed at: 
https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Policies/DCP52_2021.pdf .  
8 Accor ding to an FCA news release, these encompass e -statistics, electronic set -off, customs duties 
direct transfer among GCC countries, customs circulations, cash sums declarations, and statistical integration . 
Viewed at: https://fca.gov.ae/En/News/Pages/News155.aspx , while the website of the UAE customs lists only 
four systems . Viewed at: https://uaecustoms.ae/Home.aspx .  
9 Dubai Customs, Customs Broker  Policy of 7  April 2008. Viewed at: 
https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Policies/CustomsProkerPolicyDCP17smaller1.pdf .  
10 For additional information on the UAEO, consult https://www.aeo.ae . 
11 UAEO, AEO Certified Companies . Viewed at: https://www.aeo.ae/index.php/uaeo -list-of-certified -
companies/ . WT/TPR/S/ 423 • United Arab Emirates  
 
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  border coordination, and impartiality.12 Regarding the efficiency of customs and border management 
clearance, the UAE was  ranked 15th according to the 2018 Logistics Performance Index with a score 
that exceeded the average OECD high -income economy in this sub -indicator (Table 3.1). According 
to the authorities, the UAE does not publish detailed information obtained from Time  Release 
Studies.  
3.10.   The UAE committed to implement nearly all provisions contained in the Agreement on Trade 
Facilitation upon the Agreement's entry into force in February 2017. The authorities designated only 
provisions related to advance rulings (Article 3 .1), pre -arrival processing, and the single window as 
Category B commitments with definite dates for implementation set for end -2019 and end -2021.13 
In June 2021, the dates for implementation of Article 3.1 and the single window were extended to 
29 Decembe r 2022, but the authorities expect to implement advance rulings by end -2021.14 The 
UAE has not made any notification based on the transparency provisions of Articles 1.4, 10.4.3, 
10.6.2, and 12.2.2 of the Agreement.15 The UAE established a National Trade Facilitation Committee 
in line with Article  23.2 in 2014. According to the WTO TFA database, the implementation 
commitments stood at 97.9% in June 2021.  
Customs valuation  
3.11.   Imports are generally valued at CIF prices. In case no transaction values are provided, the 
establishment of customs value follows the methods agreed in the WTO Customs Valuation 
Agreement.16 Following a request by the importer and approval by the FCA, the sequential order of 
Articles 5 and 6 of the Customs Valuation Agreement can be reversed. The customs authorities in 
each of the seven Emirates established a Cus toms Valuation Committee to settle disputes regarding 
customs valuation where such issues cannot be resolved at customs posts. Where importers do not 
agree with any decision taken by the Committee, they can still go to court. No information was 
available r egarding the use of these mechanisms.17 
Table 3.1 Trade facilitation indicators, 2018 -19 
 UAE MENA  OECD high 
income  
OECD Trade Facilitation Indicators (2019) (0 -2 (best))     
Average trade facilitation performance  1.344  .. .. 
A-Information availability  1.524  .. 1.723  
B-Involvement of the trade community  1.571  .. 1.738  
C-Advance rulings  0.857  .. 1.806  
D-Appeal procedures  1.222  .. 1.57 
E-Fees and charges  1.769  .. 1.845  
F-Documents  1.625  .. 1.742  
G-Automation  1.833  .. 1.785  
H-Procedures  1.481  .. 1.666  
I-Internal border agency cooperation  1 .. 1.417  
J-External border agency cooperation  0.9 .. 1.562  
K-Governance and impartiality  1 .. 1.904  
Logistics Performance Index (2018)     
Efficiency of customs and border management clearance 
(1-5) 3.63 2.54 3.5 
.. Not available.  
Source:  OECD, Trade Facilitation Indicators 2019. Viewed at: https://www.oecd.org/trade/topics/trade -
facilitation/ ; and World Bank, Logistics Performance Indicator 2018. Viewed at: 
https://lpi.worldbank.org /. 
 
12 OECD, Trade Facilitation Indicators. Viewed at: https://www.oecd.org/trade/topics/trade -facilitation/ . 
13 WTO document G/ TFA/N/ARE/1/Corr.1, 19  September  2019.  
14 WTO document G/TFA/N/ARE/1/Add.1, 1  June 2021.  
15 WTO TFA database. Viewed at: https://tfadatabase.org/members/united -arab-emirates . 
16 WTO document  G/VAL/N/4/ARE/1, 15  September  2004. See also the Common Customs Law for GCC 
States, Rules of Implementation.  
17 For more detailed information on valuation, refer to WTO document WT/TPR/S/338/Rev.1, 
4 October  2016.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.1.2   Rules of origin  
3.12.   According to its notifications, the UAE does not have non -preferential rules of origin.18 Federal 
Law No.  11 of 19  December  2019 on the Rules and Certificates of Origin foresees the issuance of 
preferential (as defined in the free trade agreements (FTAs)) and non -preferential certificates of 
origin for products produced in the UAE.19 
3.13.   The agreements and rules for the GCC Customs Union do not contain specific provisions 
relating to rules of origin beyond that goods produced in any member St ate will be treated as of 
national origin. Generally, preferential treatment is granted for wholly obtained products or products 
with local value -added in GCC countries of not less than 40%20, but according to the authorities GCC 
member States are currentl y developing GCC -wide preferential rules of origin. All goods imported 
from free zones located within the GCC countries are treated as foreign goods regardless of local 
content but according to the authorities, a study is being undertaken at the GCC level to review this 
approach.21  
3.14.   The UAE does apply preferential rules of origin under its FTAs. For example, under the 
GCC-Singapore FTA, products have to be wholly obtained, or undergone sufficient working by 
demonstrating meeting a 35% value -added criterion or satisfy the product -specific rules of origin 
for the products specified in Annex 3.22 As outlined in Annex IV of the GCC -EFTA FTA, qualification 
for origin requires products to be wholly obtained or to meet certain product -specific rules of or igin.23 
For products traded under the Greater Arab Free Trade Area (also known as the Pan -Arab Free Trade 
Area), origin is transferred in case of products being wholly obtained, domestic value addition of at 
least 40%, some change in tariff-heading rules, certain process requirements, or a combination of 
some of these rules.24 
3.15.   Since early 2020, importers are no longer required to submit a Certificate of Origin with every 
shipment but can declare origin in the invoice, unless they inten d to claim preferential duty 
treatment.25 
3.1.3   Tariffs  
3.16.   As a member of the GCC, the UAE applies the CET with the vast majority (87.6%) of the 
7,585  tariff lines at 5%, and another 11.2% duty -free ( Table 3.2 ). While the GCC member States 
are aiming to establish a  common GCC -wide prohibited list, each GCC member State can currently 
still determine a list of prohibited and/or restricted products. In the UAE, about 0.4% of products 
are currently prohibited to import, while another 0.9% are classified as "special good s" (products 
obtained from pigs and alcohol, products containing alcohol, and tobacco products). Jointly, these 
account for a similar share of products as those prohibited or restricted to import in 2016. The only 
goods attracting import duties of more tha n 5% are tobacco and alcohol (products) (Table  3.3). 
3.17.   The overall tariff structure remained basically unchanged from 2015 while the GCC CET was 
transitioned to the HS17 version in 2017. The average applied tariff in 2021 was 5.0%, with tariffs 
on agricultur al products higher than those for non -agricultural products. The share of lines with 
non-ad valorem  tariffs stands at 0.7% (including prohibited items), while there are no tariff quotas, 
 
18 WTO document G/RO/N/17, 10  April 1997.  
19 This law was notified in WTO document G/RO/N/231, 18 January 2022.  
20 WTO document WT/COMTD/RTA/9/1 -WT/REG276/1 , 21 March  2018.  
21 According to news reports, some GCC member States are also considering (or have introduced) 
additional criteria (such as quota  for local staff in factories) to confer GCC origin to goods produced in the GCC. 
See, e.g. Economist Intelligence Unit (2021), "Saudi Customs Tariff Rules Target UAE Free Zones", 
7 July 2021. Viewed at: https://www.eiu.com/n/saudi -customs -tariff-rules-target -uae-free-zones/ .  
22 Ministry of Economy, GCC-Singapore Free Trade Agreement (GSFTA) . Viewed at: 
https://www.moec.gov.ae/en/ -/gcc-singapore -free-trade -agreement -gsfta-.  
23 EFTA. Viewed at: https://www.efta.int/free -trade/free -trade-agreements/gcc . 
24 Malkawi, B . and El -Shafie, M. (2019), "The Design and Operation of Rules of Origin in Greater Arab 
Free Trade Area: Challenges of Implementation and Reform", Journal of World Trade , Vol. 53, Issue 2, 
pp. 243-272. See also Dubai Customs Policy No.  50/2020 of 16  Decem ber 2020. Viewed at: 
https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Policies/DCP50_2020.pdf .  
25 Ernst and Young (2020), Dubai Customs Announces Changes in Proof of Origin Requirements . Viewed 
at: https://www.ey.com/en_gl/tax -alerts/dubai -customs -announces -changes -in-proof-of-origin -requirements .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  few tariff peaks, and no nuisance tariffs  (Table 3.2) . Customs duties  as a share of GDP fell from 
0.8% in 2016 to 0.5% in 2019.  
Table 3.2 Structure of MFN tariff in the UAE  
(%, unless otherwise indicated)   
MFN applied  Final bounda   2015  2021  
Bound tariff lines (% of all tariff lines)  n.a. n.a. 100.0  
Simple average rate  4.7 5.0 14.4 
 WTO agricultural products  5.5 6.7 25.4 
 WTO non -agricultural products  4.5 4.7 12.6 
Duty free tariff lines (% of all tariff lines)  11.2 11.2 3.5 
Simple average rate of dutiable lines only 5.3 5.6 15.0 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)b 0.3 0.7 0.0 
Domestic tariff "peaks" (% of all tariff lines)c 0.3 0.8 0.8 
International tariff "peaks" (% of all tariff lines)d 0.3 0.8 0.8 
Standard deviation  5.3 6.9 17.1 
Coefficient of variation  1.1 1.4 1.2 
Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 
n.a. Not applicable.  
a Final bound rates are based on the Consolidated Tariff Schedule (CTS) in HS12 nomenclature.  
b Including 34 prohibited tariff lines (0.4% of total lines) in case of the 2021 tariff analysis.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are def ined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  The 2015 tariff is based on HS12 nomenclature consisting of 7,321 tariff lines (at 8 -digit tariff line 
level). The 2021 tariff is based on HS17 n omenclature consisting of 7,585 tariff lines (at 8 -digit tariff 
line level). In case of non -ad valorem  tariffs, the ad valorem  part is used for mixed duties.  
Source:  WTO calculations, based on data provided by the authorities and WTO CTS database.  
Table 3.3 UAE's applied MFN tariff summary, 2021  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  7,585  5.0 0-100 6.9 11.2 0.7 
HS 01 -24 1,483  6.2 0-100 13.5 24.1 2.6 
HS 25 -97 6,102  4.7 0-100 3.7 8.0 0.3 
By WTO category        
WTO agricultural products  1,266  6.7 0-100 14.6 21.2 3.0 
Animals and products thereof  157 3.0 0-5 2.5 40.1 1.9 
Dairy products  45 5.0 5 0.0 0.0 0.0 
Fruit, vegetables, and plants  366 5.0 0-50 7.9 25.4 1.9 
Coffee, tea, and cocoa and cocoa 
preparations  44 5.9 0-50 9.8 22.7 0.0 
Cereals and preparations  191 3.6 0-5 2.3 28.8 0.0 
Oils seeds, fats, oil and their 
products  101 4.8 0-5 1.0 4.0 3.0 
Sugars and confectionery  40 4.5 0-50 7.6 32.5 0.0 
Beverages, spirits and tobacco  124 28.4 0-100 36.9 0.8 17.7 
Cotton  5 5.0 5 0.0 0.0 0.0 
Other agricultural products, n.e.s.  193 4.4 0-50 3.8 15.5 1.6 
WTO non -agricultural 
products  6,319 4.7 0-100 3.7 9.2 0.3 
Fish and fishery products  303 3.5 0-5 2.3 29.0 0.0 
Minerals and metals  1,219  4.9 0-5 0.7 2.1 0.8 WT/TPR/S/ 423 • United Arab Emirates  
 
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Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Chemicals and photographic 
supplies  1,322  4.5 0-5 1.5 9.8 0.1 
Wood, pulp, paper and furniture  469 4.6 0-5 1.4 8.7 0.0 
Textiles  724 5.0 0-5 0.4 0.6 0.0 
Clothing  254 5.0 5 0.0 0.0 0.0 
Leather, rubber, footwear and 
travel goods  207 5.0 5 0.0 0.0 2.4 
Non-electric machinery  652 4.2 0-5 1.8 16.3 0.0 
Electric machinery  338 5.6 0-100 14.9 33.1 0.0 
Transport equipment  251 4.5 0-5 1.5 10.4 0.0 
Non-agricultural products, n.e.s.  545 4.6 0-5 1.4 8.6 0.0 
Petroleum  35 5.0 5 0.0 0.0 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  540 3.0 0-100 8.8 52.6 3.3 
ISIC 2 - Mining and quarrying  127 4.9 0-5 0.8 2.4 4.7 
ISIC 3 - Manufacturing  6,917  5.2 0-100 6.7 8.1 0.4 
By stage of processing        
First stage of processing  985 3.9 0-100 6.6 29.4 2.6 
Semi-processed products  2,251  4.8 0-5 1.0 4.6 0.0 
Fully processed products  4,349  5.4 0-100 8.4 10.4 0.6 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the national tariff line level (8 -digit). Tariff schedule is based 
on HS17. In cas e of non -ad valorem  rates, the ad valorem  part is used for mixed rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
WTO bound tariffs  
3.18.   The UAE has bound all tariff lines. They are all ad valorem , range from zero to 200%,  and 
have a simple average of 14.4%, more than three times the average applied rate ( Table  3.2). Tariffs 
for agricultural products are bound at twice the rate of non -agricultural goods. For 22 tariff lines 
covering "special goods", applied tariffs exceed b ound tariffs by significant margins. This applies to 
14 tariff lines of goods containing alcohol where the applied duty of 50% exceeds the bound rate of 
15%, and 8 tariff lines for (parts of) electronic smoking devices where the applied duty of 100% 
exceed s the bound rate of 15% ( Table A3.1 ). 
Preferential rates  
3.19.   As part of its GCC commitments, goods originating in GCC member States enter duty -free. 
Goods produced in free trade zones within the GCC are taxed at the applied MFN tariffs 
(Section  3.1.2).  Goods o riginating in the Greater Arab Free Trade Area countries also enter 
duty-free. Under the GCC FTA with Singapore, nearly all tariff lines are subject to preferential tariffs, 
while the number of preferential tariff lines under the GCC -EFTA agreement is more  limited. As a 
result, the simple average of tariff lines under the GCC -Singapore FTA was 0.7% (3.2% for 
agricultural goods, 0.2% for others), while it was 0.6% under the GCC -EFTA FTA (3.3% for 
agricultural goods, 0% for others) ( Chart 3.1 ). WT/TPR/S/ 423 • United Arab Emirates  
 
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  Chart 3.1 Tariffs under preferential agreements, 2021  
 
Source:  WTO Secretariat  calculations, based on data provided by the authorities.  
3.1.4   Other charges affecting imports  
3.20.   Following the Value Added Tax (VAT) Agreement reached among all GCC member States in 
2016, the UAE introduced a VAT of 5% on 1  January  2018 as originally envisaged in the 
Agreement.26 Implementation of the VAT by the Federal Tax Authority is outlined in the VAT 
Executive Regulations of Feder al Decree -Law No.  8 of 2017 on Value Added Tax (Cabinet Decision 
No. 52 of 2017). Imports for temporary admission, imported into warehouses, in transit, or for 
re-export are not treated as imports and are therefore not liable for VAT. For a number of servi ces 
sectors (including telecom, transport, and financial), specific regulations on exports are also outlined 
in Cabinet Decision No.  52. 
3.21.   For the movement of goods, 20 "designated zones" that are listed in Cabinet Decision No.  59 
of 2017 are also treated as  outside the customs territory27 of the UAE and imports into such zones 
therefore do not attract VAT. However, services delivered in these zones (including water and 
energy), and goods consumed in these zones (excluding those that are incorporated in other  
products), fall under the VAT regime. According to Cabinet Decision No.  52, exports from the UAE 
to these designated zones are not zero -rated, in contrast with direct exports from the UAE to 
third countries (countries not implementing the GCC VAT Agreemen t), which are zero -rated.  
3.22.   The UAE also introduced an excise tax on selected products in 2017 in line with the Common 
Excise Tax Agreement of the States of the GCC.28 Initially applying to carbonated drinks, energy 
drinks, and tobacco, the tax was expanded in December 2019 to include electronic smoking devices 
(including the liquids used and related tools) as well as sweetened drinks at rates ranging from 50% 
to 100%, while the excise duty on tobacco was also amended to include a minimum tax of AED 0.4 
per cigarette.29 A number of WTO Members have raised questions concerning the transparency and 
 
26 To date, only four of the GCC countries apply the common GCC VAT (the Kingdom of Saudi Arabia 
(which increased the rate to 15% during the pandemic), the UAE, the Kingdom of Bahrain, and Oman).  
27 Cabinet Decision No.  52 indicates that such movements sh ould not be considered as "imported into 
the State [UAE]".  
28 The UAE ratified the Common Excise Tax Agreement of the States of the Gulf Cooperation Council 
(GCC) by Federal Decree -Law No.  32 of 2017.  
29 Products subject to excise duties and applicable rates  are spelled out in Cabinet Decision No.  52 on 
Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price of 4  August  2019. Viewed at: 
https://www.tax.gov.ae/ -/media/Files/FTA/links/Legislation/Excise -tax/Cabinet -Decision -No-52-of-2019.pdf .  
0%10%20%30%40%50%60%70%80%90%100%
MFN EFTA Singapore
MFN=duty-free Dutiable lines
Preferential tariff rates Prohibited lines0%1%2%3%4%5%6%7%8%
Overall WTO Agriculture WTO Non-
agriculture
MFN EFTA SingaporeDistribution of applied MFN and preferential tariffs Simple average duties under FTAs (%)
(% of all lines)
Source: WTO Secretariat calculations, based on data provided by the authorities.Chart 3. [UAE] Tariffs under preferential agreements, 2021
Note: Duty -free treatment applied to all imports from GCC and PAFTA (except prohibited items). PLEASE CONFIRM.WT/TPR/S/ 423 • United Arab Emirates  
 
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  application of these excise duties across the GCC member States on a number of occasions in 
multiple WTO bodies with the UAE providing clarifications.  
3.23.   The customs aut horities charge fees of not more than AED 100 for various customs services, 
such as for vehicle clearance per declaration (fees vary by type of declaration), or the issuance of 
an importer/exporter code. No inspection charges are payable for an inspection requested by 
customs or the scanning of containers. In addition to general service charges, Dubai Customs also 
applies generic Dubai government fees including a knowledge fee of AED 10 and an innovation fee 
of AED 10 that were both introduced in 2018 and a re levied on all government services (except 
health services) for transactions with service charges worth AED 50 and above.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.24.   Under the GCC Common Customs Law, each GCC State may determine a list of prohibited  
and/or restricted products. Imports that are prohibited in one or more GCC member States and 
permitted in another may not transit through the States in which they are prohibited. According to 
the authorities, technical committees are currently developing a common GCC -wide prohibited list.  
3.25.   There have been no major changes to the legislation governing prohibited or restricted goods 
in the UAE, with restrictions based on issues of public safety, public health, environment, natural 
resources, and national secu rity or for reasons related to the UAE foreign policy.30 The Committee 
for Goods and Materials Subject to Import and Export Control31 issues permits for the import, export, 
or re -export of certain (dual -use) chemical components, for armoured vehicles inclu ding 
components, and dual -use strategic goods. The UAE is also a signatory to the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Basel Convention 
on Hazardous Wastes, the Rotterdam Convention on Trade in Hazard ous Chemicals, the Stockholm 
Convention on Persistent Organic Pollutants, the Minamata Convention on Mercury, the Montreal 
Protocol on Substances that Deplete the Ozone Layer, and the Kimberley Process Certification 
Scheme. Goods prohibited from entering t he UAE are listed in Table  3.4. 
Table 3.4 Prohibited goods  
HS code  Goods categories/items  Controlling authorities  
12079100, 12079910, 12079920, 
12113000, 12119020, 12119060  Narcotic drugs  Ministry of Health and Prevention  
Ministry of Interior  
95043000  Gambling tools, machineries and 
devices of all kinds  Ministry of Interior  
56081100  Nylon fishing nets  Ministry of Climate Change and 
Environment (MOCCAE)  
01031000, 01039100, 01039200  Live swine  MOCCAE  
40121100, 40121200, 40121300, 
40121900, 40122000, 40129000  Used, reconditioned, and inlaid tyres  Emirates Authority for 
Standardization and Metrology  
28445000, 81121300, 81060000  Radiation and nuclear fallout 
contaminated substances  Federal Autho rity for Nuclear 
Regulation  
Various HS codesa Items that contradict Islamic faith 
and public morals   
24039921, 24039922  Paan and betel leaves  Dubai Municipality  
Various HS codesa Items infringing IP rights  Ministry of Economy  
05071000  Ivory, ivory powder and waste  MOCCAE  
25241000, 25249010, 25249020, 
25249030, 25249040, 25249090  Asbestos  MOCCAE  
38021000, 38029000  Somalian charcoal  Committee for Commodities Subject 
to Import & Export Control 
(CGMIEC) – Ministry of Foreign 
Affairs & International Cooperation  
a No tariff codes provided by the authorities.  
Source:  Information provided by the authorities.  
 
30 Federal Law No.  13 of 19  August  2007 on the Commodities Subject to the Monitoring of Imports and 
Exports (as amended), and the list of strategic goods subject to import and export control attached to the law 
via Cabinet Resolution No.  50 of 2020. The list  can be viewed at: https://www.uaeiec.gov.ae/en -us/control -
list-good.  
31 Established by Cabinet Resolution No.  3/99 of 2009.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.26.   Other than goods prohibited from entering, a list of products that are restricted from entering 
the UAE exists as well. The products on this list are determined by each Emirate, and they are 
subject to additional import requirements, such as veterinary or plant health certificates or are 
subject to limits such as those applying to alcohol or e -cigarettes (Table 3.5). 
Table 3.5 Restricted goods  
Goods categories/items  Controlling authorities  
Live animals, plants , fertilizers, insecticides and 
hazardous and medical waste  Ministry of Climate Change and Environment 
(MOCCAE)  
Firearms, ammunitions, explosives, and fireworks  Ministry of Defence / Armed Forces / Ministry of 
Interior  
Pharmaceutical products and medical/surgical 
instruments and machines  Ministry of Health and Prevention  
Print materials, publications, and media products  National Media Council  
Nuclear energy -related products  Federal Authority for Nuclear Regulation  
New tyres  
E-cigarettes and elec tronic hookahs  Emirates Authority for Standardization and 
Metrology  
Transmitters and radio equipment  Telecommunications and Digital Government 
Regulatory Authority (TDRA)  
Alcoholic beverages  Dubai Police  
Foodstuffs, personal care and cosmetic products  Dubai Municipality  
Rough diamonds  UAE Kimberley Process office  
Cash money and checks for passengers, shipments 
and parcels  Central Bank  
Products harmful to the ozone layer  MOCCAE  
Source:  Information provided by the authorities.  
3.27.   According to the latest notifications by the authorities, the UAE does not have legislation on 
import licensing procedures nor are there import licensing requirements in place.32 
3.28.   Pre-shipment inspection requirements for products and countries of origin are  in place based 
on risk management criteria.  
3.29.   Following the conclusion of the Abraham Accords Peace Agreement between the UAE and 
Israel that officially normalized the relationship between the two countries, all UAE customs 
authorities lifted the ban on imp orts from and exports to Israel on 15  November 2020 and trade 
flows are no longer restricted.33 
3.30.   Between June 2017 and January 2021, the UAE applied restrictions on trade with Qatar as 
part of measures imposed by the Kingdom of Bahrain, the Kingdom of Saudi  Arabia, the United Arab 
Emirates, and Egypt.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.31.   On intra -GCC trade, no anti -dumping and countervailing measures are permitted according 
to Article  1 of the 2001 Economic Agreement between the GCC States, w hich eliminated all tariff 
and non -tariff barriers on internal trade. There are no provisions permitting the imposition of 
safeguard measures in intra -GCC trade. Article  8 of the Agreement requires member States to unify 
their industrial legislation and re gulations with respect to rules related to anti -dumping and 
precautionary safeguards on extra -GCC trade.34 
3.32.   During the review period, the UAE amended its domestic trade remedy legislation to bring it 
into conformity with the 2010 amended GCC Common Law on A ntidumping, Countervailing Measures 
and Safeguard Measures, while also introducing a national mechanism that can be applied 
independently from the GCC Common Law. On 16  April 2017, the authorities published Federal Law 
 
32 WTO documents G/LIC/N/1/ARE/1, 18 April 1997; and G/LIC/N/3/ARE /2, 6 January 2022.  
33 See, for example, Dubai Customs, Customs Notice No.  18/2020 on the Movement of Goods and 
Commodities between the UAE and Israel, 15  November  2020. Viewed at: 
https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN18_2020.pdf .  
34 WTO document WT/COMTD/RTA/9/1 -WT/REG276/1 , 21 March  2018.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  No. 1 of 2017 on anti -dumping, counte rvailing, and safeguard measures, followed on 19  March  2018 
by its Implementation Rules.35 
3.33.   Federal Law No.  1 of 2017 sets up a national mechanism for the determination of injury and 
the potential establishment of countervailing measures and anti -dumping. T his mechanism can be 
applied where concerns are specific to the domestic (UAE) industry, rather than the GCC industry, 
an area covered under the Common Law. Under the GCC Common Law on Antidumping, 
Countervailing Measures and Safeguard Measures, the determ ination of injury is based on the GCC 
member States joint market.36 The Ministerial Committee, the Permanent Committee, and the 
Bureau of Technical Secretariat of Anti -injurious Practice in International Trade (GCC -TSAIP) deal 
with trade remedy issues at t he GCC level. The Ministry of Industry and Advanced Technology 
(MoIAT) represents the UAE in the Ministerial Committees, while the Ministry of Economy represents 
the UAE in the Permanent Committee.  
3.34.   The GCC -TSAIP is the investigating authority for trade rem edy proceedings. The GCC -TSAIP 
receives and reviews complaints before issuing a report and recommendation to the Permanent 
Committee. On this basis, the Permanent Committee decides whether to initiate an investigation 
and whether to impose provisional meas ures. The Permanent Committee can also, in exceptional 
circumstances, initiate investigations on its own initiative or based on a request made by any of the 
competent Ministries of GCC member States. Based on the final findings of an investigation, the 
Permanent Committee may propose the imposition of definitive measures to the Ministerial 
Committee.  
3.35.   During the review period, the GCC -TSAIP conducted a number of anti -dumping and 
safeguards proceedings but no countervailing proceedings. Six trade remedy measu res were 
imposed between 2016 and 2020 (four anti -dumping duties and two safeguard measures), while 
three were terminated without the imposition of a definitive duty. Two measures are ongoing. All 
trade remedy measures imposed by the Ministerial Committee are imposed by all GCC member 
States. There were no official requests for initiation of investigations for anti -dumping, countervailing 
duties, or safeguard measures at the UAE level.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.36.   The Common Customs Law of the GCC States and the GCC Unified Guide for Customs 
Procedures at First Points of Entry include provisions for exports that are consistent across 
GCC member States. In the UAE, exporters (like importers) require a tr ade licence from any of the 
Emirates and have to register with the customs authority or use an authorized broker. According to 
the Guide, only the invoice is required for exports outside the GCC customs territory (a movement 
from the customs territory to a  free zone is considered an export). Special customs regimes for 
re-exports and temporary exports are in place. When re -exporting to other GCC economies, a 
statistical export declaration is required and needs to be endorsed by the Makasa duty transfer 
system to avoid duplicate payment of customs duties upon arrival.  Special documentary 
requirements apply for certain types of exports or re -exports, for sanitary or security reasons 
(Section 3.2.3).  Firms  importing to or exporting from free zones need a trade licence from the free 
zone authority.  
3.2.2   Taxes, charges, and levies  
3.37.   Exports to countries not implementing the GCC VAT Agreement are VAT zero -rated, while 
exports to free zones remain liable for VAT.37 For trade of goods among GCC member States 
implementing th e Agreement, an exporter has to retain documentation confirming such movement 
 
35 WTO document G/ADP/N/1/ARE/2/Suppl.1, G/SCM/N/1/ARE/2/Suppl.1, and 
G/SG/N/1/ARE/2/Suppl.1, 5  October  2018, contains an English translation of the Law and Implementing Rules.  
36 Domestic industries eligible to submit complaints are the GCC producers of "like products" as a whole, 
or those whose collective output represents more than 50% of the GCC product ion of those products. Trade 
remedy investigations therefore examine the GCC market as one market, and all GCC producers of the "like 
products" within the GCC are treated as a single domestic industry.  
37 Cabinet Decision No.  52 of 2017, Article  30. WT/TPR/S/ 423 • United Arab Emirates  
 
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  of goods (i.e. the statistical customs declaration). Exports are exempt from excise tax.38 The 
authorities indicate that the exporting fee for scrap metal introduced in 2004 is n ot applied.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.38.   The GCC Common Customs Law prohibits the admission, transit, or exit of prohibited goods, 
infringing goods, and restricted goods without approval of the competent authorities at the emirate 
level (Tables 3.4 and 3.5). As mentioned in Section 3.1.5, Federal  Law No.  13 of 19  August  2007 on 
the Commodities Subject to the Monitoring of Imports and Exports (as amended) authorizes 
government bodies to restrict or ban the import, export, and re -export of  goods deemed a threat to 
the UAE's national security, foreign policy, natural resources, public health and safety, or the 
environment. The Law prohibits the export and re -export of strategic goods including arms and 
military hardware, chemical and biologi cal materials, and dual -use items without a special licence, 
detailed in a list of strategic goods subject to import and export control established by Cabinet 
Resolution No.  50 of 2020 attached to Federal Law No.  13 of 2017.39 The Committee for Goods and 
Materials Subject to Import and Export Control oversees implementation. Additional items are 
prohibited or restricted for exportation under specific laws such as narcotic drugs that are prohibited 
under Federal Decree -Law No.  8 of 2016 amending some provisions of Federal Law No.  14 of 1995 
on Combating Narcotic Drugs and Psychotropic Substances, or exports of rough diamonds that are 
restricted under Federal Law No.  13 of 2004 for Controlling Import, Export, and Transit of Rough 
Diamonds.  
3.39.   In May 2020, the Ministry of Economy banned the export of ferrous and paper scrap to 
maintain raw material supplies for the manufacturing of equipment to address the COVID -19 
pandemic. The ban was extended in September 2020 and again in July 2021 for five months. The 
authorities indicate that the measure will be notified to the WTO. The authorities also indicate that 
no other export restriction measure (either ban or specific export licence) has been implemented in 
the context of the COVID -19 pande mic, as found by the WTO COVID -19 and World Trade database 
and the International Trade Centre.40 
3.40.   As described in Section 3.1.5 , imports from and exports to Israel are no longer banned as of 
15 November  2020. Between June 2017 and January 2021, the UAE appl ied restrictions on trade 
with Qatar as part of measures imposed by the Kingdom of Bahrain, the Kingdom of Saudi Arabia, 
the United Arab Emirates, and Egypt.  
3.2.4   Export support and promotion  
3.41.   According to the UAE's notification to the WTO in 2016, the UAE does not grant or maintain 
within its territory any subsidy within the meaning of Article  1.1 of the Agreement on Subsidies and 
Countervailing Measures that is specific within the meaning of Article  2 of the Agreement, or which 
operates directly or indirectly t o increase exports from or reduce imports into its territory within the 
meaning of Article  XVI:1 of the GATT  1994.41 According to the UAE's recent notifications, no export 
subsidies for agricultural products existed between 2016 and 2020 .42 In practice, no  special 
incentives related to exports are in place. A duty suspension schemes for inputs that are later 
exported as part of final goods is in place and incentives are provided in free zones (see below) that 
are not linked to export targets.  
3.42.   Export agencie s at the emirate level provide general support to exporters. For example, Dubai 
Industries and Exports (DIE), formerly Dubai Export, provides various services to UAE -based 
companies and foreign buyers to support exports from the UAE. These services include , inter alia , 
the Export Assistance Support Program targeting SMEs (co -financing certain marketing activities 
such as export feasibility studies, exhibitions, or market visits), the Export Academy (providing 
information on foreign markets and general expor t management skills), the Export Resource Center 
 
38 Feder al Decree -Law No. 7 of 2017, Article 12.  
39 The list can be downloaded at the following link: https://www.uaeiec.gov.ae/en -us/control -list-good.  
40 WTO, COVID -19 and Trade – United Arab Emira tes. Viewed at: 
https://www.wto.org/english/tratop_e/covid19_e/covid_details_by_country_e.htm?country=ARE#countNot . 
41 WTO document G/SCM /N/284/ARE, 23  February  2016.  
42 WTO documents G/AG/N/ARE/10, 26 January 2018; G/AG/N/ARE/14 and G/AG/N/ARE/15, 
2 April 2020; G/AG/N/ARE/18, 10 January 2022; and G/AG/N/ARE/20, 13 January 2022.  The UAE did submit a 
notification regarding export subsidies fo r agricultural products in 2017.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  (allowing firms to showcase products and providing practical assistance to potential exporters), or 
Export Credit Insurance.43 DIE also hosts the SheTrades MENA Hub to support women -owned 
businesses througho ut the region and has 23 trade offices abroad, supporting UAE -based companies 
to export and connect with foreign buyers. The Sharjah Export Development Center provides 
information about export markets, supports the identification of trade partners, and sup ports 
exporters in establishing a presence in export markets through training.44 No information was 
available regarding the total financial support provided to enterprises via these services.  
3.2.5   Export finance, insurance, and guarantees  
3.43.   The Etihad Export Cre dit Insurance Company (ECI) was established in 2017 as a federal 
export credit agency.45 Following its establishment, the Dubai -registered Export Credit Insurance 
Company of the Emirates was dissolved in 2018. The ECI is mandated to guarantee commercial an d 
non-commercial risks associated with the export and re -export of goods and services , working with 
exporters in all seven Emirates, including those in free zones. The ECI facilitates trade, provides  
stable risk coverage, and supports companies in expanding operations. It offers trade credit 
insurance, export financing guarantees, project financing guarantees, factoring insurance policies 
for banks, equity investments insurance policies (political ris k coverage), and letter of credit 
confirmation. In addition, the ECI provides advice to prospective clients regarding the type of 
insurance most suited and also offers to connect prospective clients to other financial institutions 
that could provide loans at preferential rates that can be guaranteed by the ECI. According to the 
authorities, premiums paid by UAE companies to access ECI solutions are priced based on risk, 
considering OECD country risks ratings and buyers' credit scores. No information was ava ilable 
regarding the total amount of export credits insured and their breakdown by economic activity.  
3.44.   Export finance in the form of buyer credit facilities to firms across the UAE is provided by the 
Abu Dhabi Exports Office (ADEX), which was established by  the Abu Dhabi Fund for Development 
(ADFD) in 2019. It extends loans and guarantees to overseas buyers (public and private) with the 
objective of encouraging the exports of goods and services made in the UAE and opening new 
markets for UAE exporters. ADEX was established to encourage UAE companies to pursue export 
opportunities, protecting them from delayed and non -payment risk, offer buyers of UAE goods and 
services financial solutions that will ease their cash flow, and enhance competitiveness of UAE good s 
and services.46 
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  and free zones  
3.45.   Over the reporting period, there were no major changes to the tax framework in the UAE 
other than the introduction of VAT and excise taxes described above. Corporate income taxes are 
regulated at the emirate level, with only enterprises engaged in exploration and production of oil 
and gas, as well as branches of foreign banks, falling under a federal corporate tax. According to the 
authorities, the introducti on of a federal -level tax regime is still under study. Service charges levied 
at the municipal level, in contrast, vary among the Emirates, while a number of federal fees were 
removed as part of the Federal Fee Review.47 
3.46.   Free zones play an important role in the economic development and diversification strategy 
of the UAE. Additional incentives are granted to businesses established in one of the 45 free zones, 
while foreign ownership is allowed at 100%.48 According to Article 121 of the Const itution, the 
establishment and regulation of most free zones falls under the authority of the Emirates, and each 
zone is set up by a local law and governed by its own free zone authority. Free zones exist in all 
 
43 Dubai Industries and Export. Viewed at: https://www.dubaiie.gov.ae/ .  
44 Sharjah Export Development Center. Viewed at: http://sharjahexports.gov.ae . 
45 The company is a public joint stock company owned by the Federal Government and five of the seven 
Emirates. The Emirates of Sharjah and Umm Al  Quwain do not hold ownership. Viewed at: 
https://eci.gov.ae/faq .  
46 Abu Dhabi Exports Office. Viewed at: https://www.adfd.ae/english/adex/Pages/Home.aspx . 
47 Emirates News Agency  (2019), "Mo E Reduces, Cancels Fees for over 100 Public Services", 
13 July 2019.  
48 Cherian, D. (2017), "45 Free Zones in the UAE: Find the Right One for Your New Business ", Gulf 
News , 15 August 2017. Viewed at: https://gulfnews.com/lifestyle/community/45 -free-zones -in-the-uae-find-
the-right-one-for-your-new-business -1.1716197 . WT/TPR/S/ 423 • United Arab Emirates  
 
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  seven Emirates, but two thirds of all zones are located in Dubai, which is also the location of the 
largest zone (Jebel Ali Free Zone (JAFZA)). In addition to the most common type of Free (Trade) 
Zones, there are also Financial Free Zones49, and zones dedicated to specific commercial activities 
such as zones dedicated to creative industries, information technology -related industries, media, or 
medical services, where only related companies can obtain operating licences. Economic activity in 
each free zone is governed by a zone -specific law, and all f ree zone authorities are either government 
departments or operate as, or under, state -owned companies.  
3.47.   Key incentives include an exemption of corporate income taxes up to 50 years, a benefit that 
is renewable, no personal income taxes for employees of firm s established in these zones, no 
restrictions on the repatriation of capital and profits, tax -free imports into the zones (taxes are 
payable when goods are exported from free zones to the regular customs territory), and simplified 
or facilitated licensing procedures. Authorities managing the free zones support investors in 
establishing legal entities such as free zone establishments (effectively limited liability companies 
under a specific zone), a branch of a local or foreign company, or representative off ices. Authorities 
also issue licences (e.g. commercial, logistics, industrial, or trading licences) and permits 
(e.g. construction or work permits). Companies with licences from a specific zone can operate only 
in that zone, while for economic activity in the regular customs territory of the UAE, operations of 
firms registered in free zones are regulated by Federal Law No.  2 of 2015 on Commercial Companies 
(Section 2. 4) if free zone -specific laws allow for such operations. To distribute goods in the UAE, 
free zone companies continue to be required to work with an intermediary established outside the 
zone.  
3.48.   As a result, 63.8% of the UAE's non -oil merchandise exports originated in these zones in 
2020, while in 2018, 36% of all imports were destined for free zon es (Section 1.1). No  information 
regarding the total production in free zones as a share of GDP was available, but JAFZA, the largest 
zone, accounted for 23.8% of Dubai's GDP in 2019.50 Many of the largest global companies are 
established in these free zon es as well, but no comprehensive information regarding zone 
production, employment, or exports was available.  
3.49.   The amendments to Federal Law No.  2 of 2015 on Commercial Companies on 
30 September  2020 by Federal Decree -Law No.  26 of 2020 lifted ownership lim itations for 
businesses established outside free zones in many sectors while repealing Federal Law No.  19 of 
2018 on Foreign Direct Investment that had started to introduce reforms to open the onshore 
economy, eliminating the difference between free zones and onshore locations regarding foreign 
ownership.51 However, restrictions for sectors of strategic interest remain in place for onshore 
investments (Section 2.4). The  amendments to the Commercial Companies  Law also removed the 
need for foreign companies t o appoint a "national service agent" when setting up branches or 
representative offices onshore.  
3.50.   These changes to ownership restrictions are aligned with Operation 300bn, a 10 -year strategy 
aiming to increase the industrial sector's contribution to GDP fro m AED  133 billion to AED  300 billion 
by 2031. Operation 300bn was launched in March 2021 and consists of four strategic objectives: 
(i) creating an attractive business environment to meet the needs of local and international 
investors; (ii)  supporting grow th of home -grown national industries and enhancing their 
competitiveness; (iii)  stimulating innovation and the adoption of enhanced technologies in industrial 
ecosystems of the future; and (iv)  boosting the UAE's reputation as a global destination for lead ing 
future industries with world -class infrastructure and a highly skilled and technologically advanced 
workforce.  
 
49 These zones are regulated separately by Federal Law No.  8 of 2004 on Financial Free Zones, allowing 
their creation, following amendments to Article 121 of the Constitution in 2004. The amendment established 
that the order and the manner of establishing Financial Free Zones and the boundaries within which they are 
exempted from having to apply rules and regulations of the Union falls under the exclusive legislative 
jurisdiction of the Union (UAE). Financial Free Zones are established by Federal Decree (Section 4.2.2.1.1).  
50 DP World, JAFZA – A Vital Part of Dubai's E conomy . Viewed at: 
https://www.dpworld.com/en/uae/parks -and-economic -zones/jebel -ali-free-zone.  
51 Prior to 2018, foreign ownership in the onshore economy was limit ed to 49%. Under the FDI law, 
Cabinet Resolution No.  16 of 16  March  2020 defined 122 economic activities where full foreign ownership was 
allowed, using a mix of between 2 - and 7 -digit ISIC -4 codes (falling into 20 divisions of the ISIC classification). 
Viewed at: https://www.gccfintax.com/files/21363226_cabinet_resolution_no_16_of_2020.pdf .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.51.   Operation 300bn is implemented by the MoIAT, which was set up in July 2020 to increase the 
competitiveness of products made in the UAE and th e industrial sector's contribution the economy. 
The MoIAT aims to collaborate with stakeholders in the seven Emirates to implement the operation,  
while the Emirates Development Bank (EDB), fully owned by the UAE Government, will play an 
important role in a llocating financing to SMEs.52 In 2021, the Prime Minister of the UAE approved 
the allocation of AED 30 billion to support priority industrial sectors via EDB financing to 13,500 
large companies and SMEs. Other support under the Operation 300bn includes 15  initiatives that will 
enhance the industrial ecosystem's competitiveness and growth across 11 priority sectors including 
chemical products, rubber and plastics, machinery and equipment, electronics, pharmaceuticals, 
food and beverages, and hydrogen. The M ake It in the Emirates initiative is part of the broader 
strategy of industrial development, aiming to increase the share of industrial output in the economy. 
No information was available regarding the total financial support planned to be provided under 
Operation 300bn, and whether supporting regulatory measures will be put in place.  
3.52.   According to the authorities, the Federal Industry  Law and its executive regulation are being 
updated to reflect the strategy of the MoIAT.  
3.53.   The authorities provide support to SMEs, as outlined in the 2014 SME Law53 and the National 
Programme for Small and Medium Enterprises (SME Programme), implemented by the UAE SME 
Council to Empower Small and Medium -Sized National Entrepreneurs. The SME Law, inter alia, 
introduces the possib ility for the Government to exempt SMEs from certain federal fees and a 
commitment for federal government entities and companies in which the Federal Government owns 
more than 25% of the total capital to procure certain percentages with SMEs (Sections  3.3.6.1 and 
3.3.6.2). Member companies of the SME Programme also receive certain incentives and financial 
support via the EDB, and they gain access to: (i)  expertise, training, and space in international 
exhibitions; (ii)  support for product marketing; and (ii i) the Programme's specialized database 
containing up -to-date information on foreign markets (Section 3.2.4).54 
3.54.   The EDB provides SME financing (asset -backed financing, project financing, pre -sale 
financing, and receivables financing) in priority industrial  sectors (manufacturing, healthcare, 
infrastructure, food security, and technology) to firms based in the UAE, potentially at preferential 
conditions, and a credit guarantee scheme for SMEs and start -ups that are majority emirate -owned. 
According to the SM E Law, the EDB has to contribute at least 10% of its total annual financing to 
members of the SME Programme.55 The EDB also provides financing support in the context of the 
Make It in the Emirates initiative, including by providing preferential financing r ates for companies 
with high National In -Country Value scores (Section 3.3.6.3).56 Since  2015, the EDB has provided 
AED 1.8 billion in business loans to SMEs.57 
3.3.2   Standards and other technical requirements  
3.55.   In 2020, the Emirates Authority for Standardization and Metrology (ESMA) was merged into 
the newly founded MoIAT, which took over all issues related to standardization and metrology.58 As 
the sole standardization body in the UAE, the MoIAT issues (and supervises the implementation of) 
standa rds in the fields of safety, health, and environment. At the regional level, the UAE is a member 
of the GCC Standardization Organization (GSO), which coordinates the development of and approves 
GCC standards and technical regulations to facilitate trade an d economic integration, protect 
consumers and the environment, and support economic development.59 The Ministry of Health and 
Prevention is responsible for medicines.  
 
52 Emirates Development Bank, Make It in the Emirates . Viewed at: https://www.edb.ae/en/ministry -of-
industry -and-technology/ .  
53 Federal Law No.  2 of 4  March  2014 on Small and Medium Projects and Enterprises, Articles 10 and 21.  
54 UAE Government Portal, National SME Programme . Viewed at: https://u.ae/en/information -and-
services/business/small -and-medium -enterprises/national -sme-programme .  
55 SME Law, Article  17. 
56 Emirates Development Bank, EDB Supports the UAE's National In -Country Value Program . Viewed at: 
https://www.edb.ae/en/ministry -of-industry -and-technology/ .  
57 Ministry of Economy, Emirates Development Bank . Viewed at: 
https://www.moec.gov.ae/en/web/guest/emirates -developme nt-bank.  
58 WTO document G/TBT/2/Add.96/Rev.1, 8  June 2021.  
59 GSO member States are all GCC members and Yemen.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.56.   The MoIAT is also the sole authority responsible for metrology in the UAE following the m erger 
of ESMA into the MoIAT; it is tasked to manage measurement and calibration activities and to renew 
the National Metrology System. The Emirates Metrology Institute as National Metrology Institute of 
the UAE maintains the 12 national measurement standa rds, provides advice on metrology issues, 
and represents the UAE internationally in organizations and events related to metrology.60 The UAE 
is a member of the International Bureau of Weights and Measures (BIPM) and joined the 
International Committee for W eights and Measures Mutual Recognition Arrangement (CIPM -MRA) in 
2016.  
3.57.   The MoIAT participates in the standards -setting procedures at the GSO. GSO standards are 
developed under the leadership of a GSO Technical Committee or the leadership of a member State' s 
standards -setting body, before being circulated for comments, discussed, and adopted by the 
majority of the GCC Technical Council members. A fast -track mechanism exists to adopt international 
standards such as those from the International Standards Organ ization (ISO), the International 
Electrotechnical Commission (IEC), the International Organization of Legal Metrology (OIML), or 
Codex Alimentarius.61 Adopted GCC  standards can subsequently be used and referred to in the 
design of national standards, while  existing national standards inconsistent with GSO standards have 
to be withdrawn.62 The MoIAT has led the development of  GSO standards in the technical committees 
on chemicals and textiles, and cosmetics and personal care products. The GSO's Technical Council 
and Higher Ministerial Committee for Standardization can also adopt GCC Technical Regulations that 
apply directly in member States unless there is specific national legislation with the same objective. 
As of June 2021, the GSO had issued more than 20,000  standards and more than 1,300 GCC 
technical regulations.63 
3.58.   At the national level, standards are usually drafted by the Standards Department of the MoIAT 
before being discussed further in one of the technical committees, in which private se ctor 
representatives also participate. Standards are then approved by the Minister of Industry and 
Advanced Technology (formerly by the Board of the ESMA). Between 2016 and 2021, ESMA and 
subsequently the MoIAT established an additional 6,161 standards, br inging the total number to 
26,500. More than 95% of standards reflected GCC standards at the end of 2020.  
3.59.   Technical regulations are developed by the MoIAT based on a request from the Government, 
producers, or consumers based on needs for environmental or c onsumer protection. Drafts of 
technical regulations developed by the MoIAT with broad stakeholder involvement are circulated 
nationally and to the WTO for comments before being adopted by the Cabinet based on a 
recommendation of the MoIAT. The number of te chnical regulations adopted stood at 1,214 at the 
end of 2020. All national standards and technical regulations are published in the Official Gazette.  
3.60.   Over the review period, the UAE made 214 notifications under the Agreement on Technical 
Barriers to Trade : 43 notifications by the UAE alone and 171  joint notifications by all GSO members. 
Most of these covered draft standards and technical regulations for WTO members to comment. 
Other WTO members raised concerns regarding a few draft standards as they contin ued to be 
discussed by GSO members.64 
3.61.   Products covered by technical regulations require a certificate of conformity prior to their 
import. Under the UAE Conformity Assessment Scheme (ECAS), the MoIAT accepts certificates of 
conformity issued by specificall y MoIAT -accredited conformity assessment bodies in the UAE and 
abroad, according to UAE technical regulations.65 Since 2018, it has become mandatory to print the 
ECAS Mark of Conformity on such ECAS -accredited products with some exceptions such as 
 
60 Emirates Metrology Institute, EMI Overview . Viewed at: https://emi.qcc.gov.ae/en/About -Us/About -
EMI---Overview . 
61 GSO, Standards Development . Viewed at: https://www.gso.org.sa/en/standards/method -of-
standards -development/ . 
62 GSO, Standards . Viewed at:  https://www.gso.org.sa/en/standards/ ; and  WTO documen t 
WT/TPR/S/408/Rev.1 , 28 May 2021 .  
63 GSO, Standards Store . Viewed at: https://www.gso.org.sa/store/standards .  
64 At more recent TBT meetings, especially the GCC Technical Regulations for the Restricti on of the Use 
of Certain Hazardous Substances in Electrical and Electronic Equipment (IMS ID 572) and Halal Feedstuff 
(IMS ID 643) were discussed.  
65 According to the authorities, foreign Conformity Assessment Bodies can also be approved if they fulfil 
certain conditions in line with Cabinet Resolution No.  35 of 2015.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  cosmetic s, tobacco products, and energy drinks.66 An automated system of conformity assessment 
is in place and processed all applications in 2020.  
3.62.   The National Accreditation Department under the MoIAT accredits compliant conformity 
assessment bodies under the Emir ates National Accreditation Scheme (ENAS), which it manages. 
ENAS accredits conformity assessment bodies (including calibration and testing laboratories), 
certification bodies, inspection bodies, medical laboratories, and halal certification bodies.67 ENAS  is 
a member of the International Laboratory Accreditation Cooperation (ILAC), the International Halal 
Accreditation Forum (IHAF), and other regional fora. ENAS has joined the Asia Pacific Accreditation 
Cooperation mutual recognition agreement (APAC MRA) a nd became a full member in June 2019 
following a peer review of its competence to accredit certification bodies in line with ISO/IEC 17011.68 
As the APAC  MRA is recognized by ILAC, calibration and testing laboratories accredited to ISO/IEC 
17025 by ENAS ar e therefore recognized globally.69 Accreditation centres exist also at the emirate 
level, for example, the Emirates International Accreditation Centre in Dubai, which is also a full 
member of APAC, is recognized for accreditation in various management syst ems. According to the 
authorities, 155 bodies are accredited under ENAS.  
3.63.   The UAE notified its acceptance of the WTO TBT Code of Good Practice for the Preparation, 
Adoption and Application of Standards in 2006. The MoIAT is the national enquiry point and 
participates as a member in the activities of the IEC; the ISO; the ILAC; the GSO; the Arab Industrial 
Development, Standardization, and Mining Organization (AIDSMO); the OIML; the Standards and 
Metrology Institute for Islamic Countries (SMIIC); and Codex Al imentarius.  
3.64.   Although harmonized across the seven Emirates, labelling requirements are defined at the 
emirate level and apply to toys, tobacco products, food, chemical products, industrial products, 
drinking water, textiles, and cosmetics. Requirements for labels generally include all ingredients, 
food additives, the origin of any ingredients of animal origin, the country of origin, the producer's 
address, expiry dates, and storage conditions. These must be in Arabic, which can be added on a 
separate sticker  that is difficult to remove and does not cover any of the original label. Dubai 
Municipality also requires the inclusion of a barcode, specific per product and packaging size. 
Electrical household products also require a mandatory "green product" energy a nd water efficiency 
label issued by the MoIAT. Tobacco packages require a special health warning in Arabic. Individual 
Emirates have issued their own detailed food labelling requirements, for example, Abu Dhabi also 
issued its own Food Law.70 
3.65.   To market goo ds as "halal" in the UAE, they need to display the National Halal Mark, which 
can be obtained from the MoIAT following submission of a halal certificate, and declarations of 
compliance and accountability. In late 2021, there were 76 global halal certificat ion bodies that have 
been certified by the MoIAT to provide halal certificates that are acceptable for an application.  
3.66.   The MoIAT also issues a mostly voluntary Emirates Quality Mark to interested companies, but 
the quality mark is mandatory for bottled dr inking water, milk and dairy products, and juices and 
beverages.  
 
66 The requirement was introduced by ESMA Board of Directors Resolution Number 78 of 2017.  
67 MoIAT, National Accreditation System ENAS . Viewed at: https://moiat.gov.ae/en/about -us/national -
accre ditation -system -enas.  
68 APAC Register of Members and Affiliates. Viewed at: https://www.apac -accreditation.org/ 
publications/gov -series/ .  
69 MoIAT, National Accreditation Syste m ENAS . Viewed at: https://moiat.gov.ae/en/about -us/national -
accreditation -system -enas. 
70 Abu Dhabi Agriculture and Food Safety Authority (2019), General Food Labelling Requirements, Code 
of Practice No.  5 of 2019 . Viewed at: http://www.adafsa.gov.ae/English/PolicyAndLegislations/Guidelines/ 
Documents/General%20Food%20Labelling%20Requi rements%20cop.pdf . See also: Abu Dhabi Food Control 
Authority, Law No.  02 for the Year 2008 with Respect to Food within the Emirate of Abu Dhabi , Viewed at: 
http:// www.adfca.ae/English/PolicyAndLegislations/Laws/Documents/law -En.pdf .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.3.3   Sanitary and phytosanitary requirements  
3.67.   Over the review period, the institutional national framework for sanitary and phytosanitary 
(SPS) measures remained broadly unchanged, but the authorit ies issued several by -laws, ministerial 
decrees, and administrative measures to improve its implementation.71 
3.68.   The WTO focal point on SPS issues is the Ministry of Climate Change and Environment 
(MOCCAE), renamed from the Ministry of Environment and Water t o underline the Government's 
commitment to tackle climate change.72 The Ministry is responsible for the regulation of SPS issues 
and delivers import permits for live animals and certain animal products, animal by -products, 
veterinary products (medicine and  vaccines) and animal feed, plants, plant products, plant 
propagation materials, growing media, and seeds.  
3.69.   The National Food Safety Committee under the MOCCAE implements Federal Law No.  10 of 
2015 on Food Safety. The MOCCAE is tasked to unify and supervise  the procedures on food safety 
applied by the emirate -level authorities that are liable for the verification of safety along the food 
chain, including import, export, and re -export of food and feed trading. Only the MOCCAE retains 
the power to ban the impo rtation of products. Federal Law No.  10 of 2015 also applies in free zones.  
3.70.   While individual GCC members retain the authority to issue national food legislation, they aim 
to harmonize all regulatory requirements for imported foods and provide a coordinate d and efficient 
border inspection and clearance system. Generally, UAE federal SPS regulations are based on 
GSO standards in addition to the related national standards developed by the MoIAT (formerly 
ESMA). GCC  member States had developed a GCC Guide for Control on Imported Foods that was 
piloted in 2015 -16. However, its application was suspended in 2017 before entering fully into force 
due to concerns raised by WTO Members.73 Currently, each country applies its own procedures, while 
trade among GCC members needs to take into consideration the implementation of regulations 
concerning veterinary and agricultural quarantine regulations and prohibited and restricted goods.74 
3.71.   At the UAE level, a National Food Accreditation and Registration System (ZAD) was launched 
in 2018 per Ministerial Decree No.  239.75 All food items, whether domestically produced, imported, 
or modified, must be registered in the electronic ZAD system before entering the UAE market.76 
There is no fee for registering on the platform. The objective of the ZAD platform77 is to offer a 
unified and user -friendly service to foreign and local food traders. Previously, traders had to 
separately register products in each Emirate they wanted to transport products to.78 
3.72.   Each Emirate has its own agency responsible for applying rules adopted by the M OCCAE to  
enhance food safety, and animal and plant health . The MOCCAE and local authorities at the emirate 
level share the responsibility for the control and inspection of agricultural food safety, as well as 
phytosanitary control and inspection, including  in the free zones . Emirate authorities can issue 
additional standards and regulations on food safety that have to be consistent with federal rules.79 
Imports generally require an original health certificate issued by the competent authority of the 
country  of origin, a halal certificate for meat and poultry or food derived from animal products or 
 
71 Key applicable laws are Federal Law No.  5 of 1979 on agricultural quarantine (as amended); Federal 
Law No.  6 of 1979 on Veterinary Quarantine (as amended); Federal Law No.  38 of 1992 regarding the 
Establishment of Plant Nurseries and Organising the Production, Import, and Circulation of Seedlings; Federal 
Law No.  5 of 2009 on Organic Inputs and Products; Federal Law No.  9 of 2013 on Plant Genetic Resources for 
Food and Agriculture; and  Federal Law No.  10 of 2015 on Food Safety.  
72 MOCCAE, About the Ministry . Viewed at: https://www.moccae.gov.ae/en/about -ministry/about -the-
ministry.aspx . 
73 WTO (2017), "WTO  Members Adopt Report on Food Safety Agreement", 14  July 2017. Viewed at: 
https://www.wto.org/english/news_e/news17_e/sps_13jul17_e.htm . 
74 WTO document WT/COMTD/RTA/9/1 -WT/REG276 /1, 21  March  2018.  
75 Such a system is outlined in Federal Law No.  10 of 2015.  
76 According to the authorities, registration is sufficient and does not require approval.  
77 The platform is available at: https://zad.gov.ae .  
78 Emirates News Agency  (2021), "Ministry of Climate Change Plans Launch of New Food Safety 
Standards System: Belhaif al Nuaimi", 13  June 2021.  
79 TAMM Abu Dhabi, Food Safety . Viewed at: https://www.tamm.abudhabi/en/aspects -of-
life/healthsafety/healthinsurance/ConsumerRightsProtection/food -safety . WT/TPR/S/ 423 • United Arab Emirates  
 
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  that may contain additives of animal origin , and supporting documents for nutritional or health 
claims.  
3.73.   The UAE launched the National Rapid Alert System for Food i n 2017 to ensure proper 
responses when serious food risks are detected, and the MOCCAE also joined the International Food 
Safety Authorities Network (INFOSAN) and the Gulf Rapid Alert System for Food (GRASF). The 
GRASF operates to allow food and feed autho rities of GCC member States to exchange information 
on direct or indirect risks to consumers' health. Food items that have been determined as unfit for 
human consumption by any other country or international organization will be automatically rejected 
in all Emirates.80 
3.74.   Ministerial Decree No.  335 of 2018 on Regulating the Importation of Live Animals, Their 
Products and Their By -products and Federal Law No.  6 of 1979 on Veterinary Quarantine regulate 
the importation of animals and their products. Ministerial  Decree No.  335 of 2018 includes import 
terms and conditions depending on the animal species, taking into account international standards 
(World Organisation for Animal Health (OIE) standards and guidelines) and comments received from 
WTO Members on the dr aft decree to facilitate trade between the UAE and its trading partners.81 
Slaughterhouses intending to export poultry or red meat to the UAE require prior approval by the 
MOCCAE.82 To ensure safety from infectious diseases, all animals are subject to quar antine 
processes, physical inspection, and laboratory testing.83 As for plant imports, several laws and 
decrees set out specific requirements in addition to Federal Law No.  5 of 1979 Concerning 
Agricultural Quarantine.84 Federal authorities retain the righ t to put in place targeted regulations or 
import bans during periods of diseases presenting a risk to animal or plant health in some affected 
countries. The MOCCAE online portal publishes a list of approved countries for importing certain live 
animals (she ep, goats, cattle, camels, birds, day -old chicks, and hatching eggs).85 Country approval 
is based on the OIE status of the concerned countries, as well as the evaluation of the exporting 
countries' veterinary services to ensure their capacity to monitor an d control contagious animal 
diseases.  
3.75.   Between January 2016 and September 2021, the UAE submitted 272 notifications under the 
Agreement on the Application of Sanitary and Phytosanitary Measures, including 68 regular 
notifications and 180 emergency (or adden da emergency) notifications.  Seventy -six notifications 
were joint GCC notifications.  The UAE has notified the measures it has taken regarding animal, 
agricultural, and food consignments in response to the pandemic to facilitate trade in tandem with 
necessa ry precautionary measures.86 In November 2017, Turkey raised a concern regarding 
documentation requirements for the registration of pesticides.87 
3.76.   Importation and circulation of organic food inputs and products are regulated by Federal Law 
No. 5 of 2009 on Organic Inputs and Products and Ministerial Decree No.  768 of 2014. Under the 
2012 organic certification scheme, registration and issuance of a conformity certificate for organic 
products are available for crops, livestock, and processed food. Products mar keted as "organic" 
require certification by ESMA under the Emirates Organic Foods Certification Scheme, independent 
of their origin.88 The UAE recognizes 10 international organic standards as equivalent to the UAE 
ones, which are from Australia, Canada, the European  Union, India, Japan, New  Zealand, the 
Kingdom of Saudi Arabia, Tunisia, the United Kingdom, and the United  States.  
 
80 Information provided by the authorities.  
81 Information provided by the authorities.  
82 WTO document G/SPS/N/ARE/145, 7  March  2018.  
83 United  States Department of Agriculture (2019), United Arab Emirates: Food and Agricultural Import 
Regulations and Standards Report . Viewed at: https://bit.ly/3vv5XI3 . 
84 These include Federal Law No.  38 of 1992 Concerning the Establishment of Arboretums and the 
Regulation of the Production, Import and Circulation of Seedlings, Ministerial Decree No. 315 of 2011 
Concerning the Regulation of the Imp ortation of Palms, and Federal Law No.  9 of 2013 on Plant Gene tic 
Resources for Food and Agriculture.  
85 MOCCAE, List of Approved Countries for Importing Live Animals . Viewed at: 
https://www.moccae.gov.ae/en/our -services/list -of-approved -disapproved -countries -for-import.aspx#page=1 . 
86 WTO document G/SPS/GEN/1774, 6  May 2020.  
87 WTO SPS Information Management System, STC Number 429. Viewed at: 
http://spsims.wto.org/en/SpecificTradeConcerns/View?ImsId=429 . 
88 This service was offered by ESMA, which was me rged into the MoIAT. The corresponding service from 
the MoIAT was not available at the time of writing.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.77.   Importation and registration of pesticides are governed by Federal Law No.  10 of 2020 and 
Ministerial Decision No.  27 of 2018. Labelling is mandatory for unprocessed agricultural products, 
processed food products, or feed products or seed that contain more than 1% gen etically modified 
ingredients. Any genetically modified product must be approved for use in the country of origin for 
human or animal consumption.89 
3.78.   The UAE is a member of the OIE, the Codex Alimentarius, and the International Plant 
Protection Convention ( IPPC). The MOCCAE is committed to adopting IPPC measures and guidelines, 
and to communicating with the IPPC on every relevant SPS issue.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.79.   The competition policy regime in the UAE is primarily regulate d by Federal Law No.  4 of 2012 
on the Regulation of Competition (the Competition Law), which entered into force on 
23 February  2013, and its Implementing Regulations (Cabinet Resolution No.  37 of 2014). Since the 
previous Review, the legislative framework for competition has been supplemented with Cabinet 
Resolution No.  13 of 2016, which provides the market thresholds necessary for implementing the 
Competition Law.  
3.80.   Other laws predating the Competition Law contain competition provisions or regulate 
competiti on in specific sectors. These include Federal Law No.  4 of 1979 on the Suppression of Fraud 
and Deception in Commercial Transactions; Federal Law No.  18 of 1981 on Trade Agencies (as 
amended); Federal Law No.  18 of 1993 (Commercial Code); Federal Law No.  6 of 1985 regarding 
Islamic Banks, Financial Institutions and Investment Companies ; and Federal Law No.  3 of 2003 on 
the Telecommunications Sector. Moreover, under the new Federal Law No.  15 of 2020 on Consumer 
Protection, the Ministry of Economy is respons ible for "working to achieve the principle of competition 
and combatting misleading advertisements and monopoly".  
3.81.   The objectives of the Competition Law are to protect and promote competition, and maintain 
a competitive market governed by market mechanisms,  specifically by prohibiting restrictive 
agreements and the abuse of dominant position, and regulating economic concentration operations 
(including mergers and acquisitions).  
3.82.   The Competition Law applies to natural or legal persons, or a combination thereof, engaging 
in economic activities or exploiting intellectual property rights in the UAE. Economic activities carried 
out abroad but affecting competition in the UAE are also s ubject to the Competition Law (Article  3). 
The following activities and entities are explicitly excluded from the application of the Competition 
Law (Article  4):  
• activities subject to sector -specific laws or sectoral regulators: telecommunications; 
financ ial services; cultural activities; oil and gas; production and distribution of 
pharmaceuticals; postal services (including express mail services); production, 
distribution, and transmission of electricity and water; sanitation, waste disposal, and 
environm ental services; and all transport services;  
• acts undertaken by federal and local governments, entities acting upon the authority of 
federal or local governments, and enterprises owned or controlled by federal or local 
governments; and  
• small and medium -sized enterprises.90 
3.83.   The UAE competition authority is the Ministry of Economy through its Competition 
Department. The Ministry's responsibilities include implementing policy, investigating alleged 
violations of the Competition Law (based on complaints received  from the public or on its own 
 
89 United  States Department of Agriculture (2020), United Arab Emirates: Food and Agricultural Import 
Regulations and Standards Country Report , p. 17. Vi ewed at: https://bit.ly/3vxVz2d .  
90 Cabinet Resolution No.  22 of 2016 sets out the criteria and thresholds to determine which enterprises 
fall within the categories of "micro enterprise" and "small and medium -sized en terprises".  WT/TPR/S/ 423 • United Arab Emirates  
 
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  initiative), and making recommendations to address such violations in coordination with the 
competent authorities in the UAE. In addition, the Competition Law provides for the establishment 
of the Competition Regulation Commi ttee (CRC) to be chaired by the Undersecretary of the Ministry 
of Economy. The CRC operates under the supervision of the Ministry of Economy, and its mandate 
includes proposing policy and legislation on competition, making recommendations to the Ministry 
on the implementation of the Law, examining requests for reconsideration of the decisions made by 
the Minister of Economy, and making recommendations to the Minister regarding companies' 
requests for an exemption of restrictive agreements or dominant positi on practices from the 
provisions of the Law. The CRC was formally established in 2018, five years after the entry into force 
of the Competition Law, and it held its first meeting in March 2018.91 
3.84.   Article  5 of the Competition Law prohibits the use of restri ctive agreements and provides an 
illustrative list of such agreements including price -fixing, collusion on bids, market allocation 
arrangements, agreements to supress production, barriers to entry, and exclusive distribution and 
other distribution agreemen ts. However, the prohibition does not apply to exclusive distribution 
agreements that fall within the ambit of the Trade Agencies Law (Federal Law No.  18 of 1981). 
Moreover, the prohibition on restrictive agreements does not apply to what is termed "low -impact" 
agreements, i.e.  agreements between entities whose collective market share does not exceed 10% 
of the "total transactions" (i.e. total annual sales) in the relevant market (Cabinet Resolution No.  13 
of 2016).  
3.85.   Article  6 of the Competition Law prohibit s enterprises having a dominant position in their 
relevant market ("or in a substantial or influential part thereof") from abusing such position to 
prejudice, restrict, or prevent competition. The Law provides examples of what may be considered 
abuse of do minant position, including indirect resale price maintenance, predatory pricing, 
unjustified discrimination of customers with identical contracts, trade restraints (i.e. preventing 
customers from dealing with competing entities, denying a customer access t o products and 
services, or not permitting access on standard commercial terms), price manipulations, and tying 
(i.e. conditioning the supply of goods/services on the requirement that the customer also purchases 
a different product from the supplier). As p er Cabinet Resolution No.  13 of 2016, an enterprise is 
deemed to have a dominant position if its shares exceed 40% of the "total transactions" in the 
relevant market.92 
3.86.   Under the Competition Law and its Implementing Regulations, individual undertakings may  
make an application to seek exemptions from the provisions on restrictive agreements and abuse of 
dominant position by notifying the CRC of the agreement or business practice in question, and 
submitting the prescribed supporting documents. The CRC may rec ommend to the Minister of 
Economy that the applicant be exempted from the relevant provision of the Competition Law if the 
applicant can demonstrate that the agreement or business practice in question is in the interest of 
the economy and consumers. Based on the CRC's recommendation, the Minister may approve, 
approve with conditions, or reject the request within 90 days of the date the applicant was notified 
of the receipt of the complete application. This period may be extended for 45 additional days. If n o 
decision is issued within this period, the application is deemed to be approved.  
3.87.   Economic concentrations are regulated under Article  9 of the Competition Law. This provision 
requires a prior approval of the Minister of Economy for any economic concentrat ion operation (such 
as a merger or acquisition), which will result in an enterprise attaining a dominant position and may 
affect competition within the relevant market.93 Applications for approval must be made 30 days 
prior to the operation taking place. I f approval is not sought, the enterprises involved are liable to a 
fine. The procedures for filing an application are set out in the Implementing Regulations. A Ministry's 
report is prepared and sent to the Minister who may approve, approve with conditions , or reject the 
application within 90 days (with a possible extension of 45 days). Again, if no decision is issued 
within such period, the application is deemed to have been approved. An enterprise is prohibited 
 
91 The composition of the CRC is set in Cabinet Resolution No.  16 of 2021 , issued on 
13 September  2021.  
92 As per Cabinet Resolution No.  13 of 2016, each relevant market includes only those products which, 
in terms of price and other relevant fea tures, consumers would consider interchangeable with one another in a 
particular geographic area. The Ministry of Economy has not issued any directive or decision on how to 
determine the scope of the "relevant market".  
93 The authorities indicate that , when  examining requests for economic concentration,  the UAE market is 
considered as a single mark et.  
 WT/TPR/S/ 423 • United Arab Emirates  
 
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  from executing the economic concentration op eration pending its approval; non -compliance with 
this provision is subject to a fine. The Minister is empowered to approve an economic concentration 
operation if it has no adverse impact on competition or if its positive effects outweigh any negative 
effects on competition.  
3.88.   The Competition Law stipulates several penalties for violations of its provisions 
(Articles  16-24). Penalties may include fines or the suspension of the relevant activities pending a 
final court decision. In the most severe cases, a cou rt may order the closure of the offending business 
for a period of three to six months and the publication of the court's decision in at least two local 
newspapers at the expense of the offending party. In most cases, fines range from AED 500,000 to 
AED 5, 000,000 ( Table 3.6 ). The fines are doubled in the event of recurrent violations. The imposition 
of penalties on an offending party is without prejudice to the right of any aggrieved party to file a 
court case to seek compensation for damages resulting from  the unlawful acts.  
Table 3.6 Fines for violations of the Competition Law  
Infringing practice  Amount of fine  
Restrictive agreements (Article  5) AED 500,000 -AED 5,000,000  
Abuse of dominant position (Article  6) AED 500,000 -AED 5,000,000  
Economic concentration (Article  9) • 2% to 5% of annual sales/revenues of goods/services 
accrued by the violating entity in the UAE in the last 
financial year; or  
• AED 500,000 -AED 5,000,000 if annual sales/revenues 
cannot be determined  
Executing an economic concentration 
operation pending approval from the 
Minister of Economy (Article  10.2)  AED 50,000 -AED 500,000  
Non-compliance with the obligations relating 
to confidential information (Article  15) AED 50,000 -AED 200,000  
Violations of any other provision of the 
Competition Law  AED 10,000 -AED 100,000  
Source:  Competition Law, Chapter VIII.  
3.89.   The Minister's approval is required for initiating any criminal prosecution of acts contrary to 
the Competition Law. The Minister is also authorized to reconcile or settle any contravention of the 
Law before a criminal case is referred to trial, provided the defendant pays an amount equivalent to 
no less than double the minimum fine. So far, there have b een no cases referred to the Public 
Prosecution office; rather, cases have been addressed through reconciliation or settlement in 
accordance with Article  15 of Cabinet Resolution No.  37 of 2014.  
3.90.   There is no special leniency programme available for violatio ns of the Competition Law.  
3.91.   As per the Law's Implementing Regulations, any concerned party may file a request (along 
with supporting documents) asking for reconsideration of a decision made by the Minister no later 
than 14 days from the date the decision wa s notified. The CRC is required to study the request and 
submit its recommendations to the Minister within 10 days. The Minister must decide upon the 
request within 30 days of the submission date of the CRC's recommendation. If no decision is issued 
within  this period, the request is deemed rejected.  
3.92.   Decisions issued by the Minister under the Competition Law may be appealed before the 
competent court, i.e. the UAE Federal Court, within 60 days of the date when such decisions were 
notified to the concerned p arties.94  
3.93.   Enforcement of the Competition Law in the UAE can be said to still be in its early stages. While 
several cases seem to have been filed and examined by the Ministry of Economy and the CRC, there 
are no publicly available official records on decis ions concerning such cases. The authorities indicate 
that during the period 2018 -21, the Ministry of Economy handled eight requests for economic 
concentration (mergers and acquisitions) and four competition complaints. During this initial phase, 
the compet ition authorities are more focused on educating businesses and elaborating 
implementation guidelines, particularly as regards economic concentration provisions, and where 
 
94 Competition Law, Article  27. WT/TPR/S/ 423 • United Arab Emirates  
 
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  complaints are filed, the focus is on assisting the concerned parties to agree to an amicable 
settlement rather than referring the cases to criminal prosecution.95 The authorities indicate that, in 
line with the Competition Law and its Implementing Regulations, the parties to a complaint are 
encouraged to reach an amicable solution. Where a solution is not reached, the parties may refer 
the case to the competent court.  
3.94.   As regards international cooperation on competition matters, the Ministry of Economy is 
mandated under the Competition Law to promote the exchange of information with competi tion 
authorities in other countries to fulfil the purpose of, and implement, the Law. The CRC participated 
in the International Competition Network's annual meeting for the first time in 2018. The CRC has 
not yet signed any memoranda of understanding with foreign competition agencies, but a 
recommendation to do so was issued at a recent CRC meeting.  
3.3.4.2   Price controls  
3.95.   Federal Law No.  15 of 2020 on Consumer Protection (CPL) entered into force on 16 November 
2020, repealing Federal Law No.  24 of 2006. The CPL ret ains some provisions of the previous law, 
and expands the protection available to consumers, notably in the context of e -commerce 
transactions. It also empowers the Minister of Economy to apply price controls "in the event of a 
crisis, emergency circumstan ces, or unusual conditions in the internal or external markets  … to 
protect and preserve the interest of consumers from any harm" (Article  9), and mandates the 
Ministry of Economy to monitor the movement of prices in order to limit increases (Article  22).  
3.96.   While in the UAE prices are generally determined by the market, the Ministry of Economy 
monitors the prices of several commodities to ensure price stability and consumers' welfare. The 
commodity groups subject to price monitoring are fish and marine produ cts; meat and poultry; rice 
and other cereals; dairy, cheese, and eggs; fats and oils; vegetables; fruits; sugar and honey; 
coffee, tea, and cocoa; and juices and drinks. Traders selling these products must obtain prior 
authorization from the Ministry of E conomy to increase their prices. The Ministry carries out market 
inspections and imposes penalties to traders infringing this procedure.  
3.97.   Other government entities apply price controls under product - or sector -specific legislation. 
The Ministry of Health se ts the prices for 11,137 pharmaceutical products.96 Law No.  8 of 2019 on 
Medical Products, the Pharmacy Profession and Pharmaceutical Establishments  entered into force on 
30 January 2020, replacing Law No.  4 of 1983. The new law sets out a consolidated legal framework 
under which medical products (medicines, medical devices, and health -related consumer goods) are 
placed in the UAE market. As regards p ricing, Law No.  8 of 2019 mandates the establishment of a 
price for medical products as part of the marketing authorization procedure. It also provides that 
medical products subject to price control cannot be sold at higher prices and shall not be subject to 
any price discounts.97 
3.98.   The Telecommunications Regulatory Authority (TRA) is responsible for policy formulation and 
implementation of price controls in the sector in accordance with its Regulatory Policy and Procedure 
on Price Control, updated on 28 June  2017. Telecommunication operators are required to obtain 
prior approval for any change in the prices of the services they offer that fall under the TRA's 
oversight. The TRA may amend, revoke, or suspend an existing approval should circumstances 
warrant su ch action (Section 4. 3.3). 
3.99.   The electricity and water sectors, which are mostly owned and controlled by government 
authorities98, are also subject to price controls applied by the relevant regulators at the emirate 
level. In Abu Dhabi, following an energy s ector reform in 2018, the Department of Energy took over 
 
95 See for example, BSA, Ahmad Bin Hezeem & Associates LLP, Cartels: UAE Chapter , June 2019. 
Viewed at: https://bsabh.com/cartels -uae-
chapter/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=LinkedIn -integration . 
96 Ministerial  Resolution No.  140 of 2013 (Pricing Resolution) established fixed margins for the 
distributors and pharmacies in respect of registered pharmaceutical products sold to consumers.  
97 For more details on Law No. 8 of 2019, see Baker McKenzie, UAE Overhauls Le gal Framework for 
Medicines, Medical Devices and Health Consumer Products , 24 February 2020. Viewed at : 
https://www.bakermckenzie.com/ en/insight/publications/2020/02/uae -overhauls -legal-framework -for-
medicines . 
98 In 2020, the electricity and water transmission and distribution companies in Abu Dhabi were partially 
privati zed, with the new owner being TAQA, a company listed on the Abu Dha bi stock exchange.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  the mandate to manage price controls for the purchase and distribution of electricity and water, the 
transmission of electricity, and the collection, treatment, and disposal of sewage.99 Regulatory p rice 
controls continue to be determined using a price/revenue cap mechanism (Section  4.2). In Dubai, 
the Dubai Electricity and Water Authority (DEWA) exclusively owns and operates the electricity - and 
water -generation facilities, the transmission grid, and  the distribution networks. It sets the prices 
using "cost -reflective tariffs", which are approved by the sector's regulator, the Dubai Supreme 
Council of Energy. In the Emirate of Sharjah, the Sharjah Electricity, Water and Gas Authority 
(SEWGA) is author ized to set electricity tariffs subject to approval of the Ruler of Sharjah. In the 
Emirates of Ras Al Khaimah, Fujairah, Ajman, and Umm Al Quwain, the government -owned Etihad 
Water and Electricity Company provides water and electricity distribution servic es, while generation 
and transmission are undertaken by Etihad and TAQA. The UAE Ministry of Energy and Infrastructure 
provides the regulatory framework for the water and electricity sector in these four Emirates and is 
responsible for ensuring fair and tr ansparent prices for consumers.  
3.100.   Since August 2015, domestic fuel prices have been linked to international prices.100 
Currently, retail prices for gasoline and diesel are determined by the Ministry of Energy and 
Infrastructure, based on an average price from  several international sources and a margin for the 
three distribution companies operating in the market. The prices are published on a monthly basis.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.101.   State -owned enterprises (SOEs), usually referre d to as government -related entities (GREs) 
in government documents101, play an important role in the economy of the UAE, and they have been 
an important element in the diversification efforts led by the Government, although the importance 
of their role varies by Emirate. They are present in nearly all sectors of the economy . In 2013, the 
percentage of SOEs among the largest business entities stood at nearly 90%, the second highest 
among all countries having at least 10 firms in the Forbes Global 2000 list.102 At the same time, the 
authorities state that many SOEs have full op erational autonomy and are managed independently 
through their boards.  
3.102.   Ownership of GREs is mostly decentralized, with the Emirates Investment Authority 
sovereign wealth fund (SWF) (at the federal level) and various emirate -level wealth funds controlling 
GREs either fully or partially. No consolidated and complete information is available for the total 
number, assets, employment, revenues, and performance of GREs in the UAE.103 According to the 
OECD, UAE authorities also directly control some GREs where they  are a minority, but the largest 
individual shareholder.104 
3.103.   Building on earlier reforms aimed at increasing competitiveness and governance of SOEs105, 
some authorities continued to reform the SOE sector over the review period by adjusting ownership 
structure s, improving governance, and strengthening financial independence from government 
budgets. In 2018, Abu Dhabi set up the Abu Dhabi Developmental Holding Company (ADDHC), an 
entity fully owned by the Government of Abu Dhabi, holding notionally financial and  administrative 
autonomy. In 2019, the Executive Council of Abu Dhabi announced it would initially transfer 
ownership of 11 SOEs to the ADDHC, tasked to function as a state holding company and to improve 
performance and monitoring of these entities.106 No information was available regarding how many 
 
99 The previous regulator, the Regulation and Supervision Bureau, was merged into the D epartment of 
Energy  in 2018. The functions and duties of the D epartment of Energy  are set out in Law No.  11 of 2018, Law 
No. 2 of 1998 , and Law No.  17 of 2005.  
100 UAE Government Portal , Energy and Fuel Prices . Viewed at: https://u.ae/en/information -and-
services/environment -and-energy/wat er-and-energy/energy -and-fuel-prices . 
101 GREs are defined as certain entities wholly or majority -owned by various levels of government.  
102 Kowalski, P., et al. (2013), "State -Owned Enterprises: Trade Effects and Policy Implications ", OECD 
Trade Policy Papers , No. 147. Viewed at: http://dx.doi.org/10.1787/5k4869ckqk7l -en.  
103 OECD (2019), Corporate Governance in MENA: Building a Framework for Competitiveness and 
Growth . Viewed at: https://doi.org/10.1787/2a6992c2 -en; and Government of Dubai (2020 ), Euro Medium 
Term Note Programme – Base Prospectus Dated 29  July 2020. Viewed at: https://www.dof.gov.ae/en -
us/Investor/Lists/InvestorForms/Attachments/8/Base%20Prospectus%20(EMTN).pdf .  
104 OECD (2019), Corporate Governance in MENA: Building a Framework for Competitiveness an d 
Growth .  
105 See for example WTO document WT/TPR/S/338/Rev.1, 4  October 2016.  
106 These SOEs include Abu Dhabi Ports, Abu Dhabi Airports, Musanada (the Abu Dhabi General Services 
Company), and the Higher Corporation for Specialised Economic Zones. Sanderson,  D. (2020), "State -Owned 
Abu Dhabi Firms Transferred to New Parent Company", The National , 19 February 2020. Viewed at: WT/TPR/S/ 423 • United Arab Emirates  
 
- 66 - 
 
  companies had been transferred to the holding company subsequently and how many remained 
under direct control of the Executive Council. Following the transfer, the holding company also 
initiated performance optim ization, restructuring, and partial privatization programmes in some of 
these SOEs. Now known as ADQ, the holding company has become the third -largest SWF in 
Abu Dhabi with estimated assets of USD  110 billion and a mandate to enhance Abu  Dhabi's 
competitiv eness and resilience through local and international investments.107 Mubadala, one of the 
other investment funds, also holds investments in the UAE across nine sectors, in addition to its 
international investments.108 In the UAE, it owns 29 companies and is the majority shareholder in 
16 companies. The Abu Dhabi Accountability Authority also audits the financial statements of all 
SOEs and their subsidiaries and has the right to review the performance of their operations.109 SOEs 
owned by the Government of Abu Dhabi retain financial and administrative autonomy. In Dubai, 
both the Investment Corporation of Dubai and Dubai World own and manage some SOEs.  
3.104.   Over the reporting period, the Securities & Commodities Authority approved the listing of a 
number of SOEs on t he national stock exchanges, floating varying percentages of shares. For 
example, the Abu Dhabi National Oil Company (ADNOC) issued 13% of the shares in its distribution 
subsidiary as part of an initial public offering (IPO) in 2017. While ADNOC Distributi on is now listed 
on the Abu Dhabi Stock Exchange, the company remains nearly 77% owned by its state -owned 
parent company.110 In 2021, Al Yah Satellite Communications raised AED 2.7 billion in an IPO that 
represents 40% of the share capital of the company. T here are 41 GREs (the Government holding a 
share of the capital) or their holding companies that have issued debt that is listed on such 
exchanges, requiring them to publish key financial information when issuing debt instruments, 
including Mubadala, Senaa t, Dubai World, or Abu Dhabi Port owned by ADQ. Listed GREs also publish 
their financial information as part of disclosure obligations.  
3.105.   Debt levels at GREs vary widely, as do available credit ratings. While the authorities continue 
to emphasize that most G RE debt is not explicitly guaranteed by the Federal or Emirate 
Governments, some of it is.111 Expectations that authorities could provide support in case of major 
financing difficulties for at least some companies are reflected in rating decisions by major rating 
agencies. Officially, in the case of Dubai, GREs that are considered strategically important can apply 
to the Dubai Financial Support Fund (DFSF) for support112, which may or may not be granted and is 
expected to be repaid. According to the authoriti es, consolidated information on the overall financial 
position and potential future financing requirements of Dubai's GREs may not yet have been fully 
identified.113 Abu Dhabi authorities also remain open to providing significant financial or other 
support to certain government -owned or strategic companies in Abu Dhabi or other Emirates, should 
they face difficulties, without being under obligation to do so, however. At the end of 2018, total 
outstanding liabilities of SOEs in Abu Dhabi alone were estimated at USD  43.3 billion.114 
3.106.   Total credits to GREs in the banking system of the UAE increased from AED 180 billion in 
2016 to AED 219.9 billion at the end of 2020, driven primarily by increases in March and April of 
2020 during the COVID -19 pandemic.115 Rules regarding commercial banks' large exposure limits to 
 
https://www. thenationalnews.com/uae/state -owned -abu-dhabi -firms-transferred -to-new-parent -company -
1.882597 .  
107 Global SWF , Ranking . Viewed at: https://globalswf.com/top -100.  
108 Mubadala, Our Portfolio . Viewed at: https://www.mubadala.com/en/our -portfolio .  
109 Abu Dhabi Acco untability Authority, Subject Entities . Viewed at: https://adaa.gov.ae/en/About -
ADAA/Pages/Subject -Entities.aspx . 
110 Economist Intelligence Unit (2017), "ADNOC Distribution Lists on Abu Dhabi Exchange", 
21 December  2017. Viewed at: http://country.eiu.com/article.aspx?articleid=406251424 . 
111 For example, the Government of Dubai has issued an explicit payment guar antee of USD  3 billion 
under the New Dubai World Facility. See Government of Dubai (2020), Euro Medium Term Note Programme – 
Base Prospectus Dated 29 July 2020 .  
112 The DFSF is financed with USD  10 billion from the Government of Dubai using proceeds from bo nds 
issued to the Central Bank  of the UAE  and USD  10 billion from the Government of Abu Dhabi.  
113 Government of Dubai (2020), Euro Medium Term Note Programme – Base Prospectus Dated 
29 July 2020.  
114 Emirate of Abu Dhabi (2019), Global Medium Term Note Programme – Base Prospectus . Viewed at: 
https://www.rns -pdf.londonstockexchange.com/rns/3012N_1 -2019-9-23.pdf .  
115 Central Bank of the UAE (2018), Main Highlights of the UAE Banking Indicators January 2018. 
Viewed at: https://centralbank.ae/sit es/default/files/2018 -09/UAEMonthlyBankingIndicators_Highlights_ 
January18_En.pdf ; Central Bank of the UAE (2020), Main Highlights of the UAE Banking Indicators February 
2020. Viewed at: https://centralbank.ae/sites/default/files/2020 -05/Main%20Highlights%20of%20the%20UAE 
%20Banking%20Indicators%20 -%20February%202020%20 -%20English.pdf ; Centra l Bank of the UAE (2020), WT/TPR/S/ 423 • United Arab Emirates  
 
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  GREs established in 2013 by the Central Bank remain in place and are monitored by the Central 
Bank's supervision department.  In Dubai, the Supreme Fiscal Committee continues to approve 
borrowings by the Government and SOEs, as well as guarantees given to SOEs.  
3.107.   Some GREs are internationally renowned and seemingly commercially very profitable 
companies that contribute significant revenue to the federal budget with government revenue from 
GRE profits representing 8.8% of GDP in 2020.116 A number of GREs directly or indirectly compete 
against each other (e.g.  in the areas of telecommunications, air transport, and air transport 
services).  
3.108.   The UAE notified the WTO that it does not maintain any state tradin g enterprises within the 
meaning of Article  XVII of the GATT  1994 and the Understanding on the Interpretation of Article  XVII 
as of 2019, the last year covered by the notifications.117 
3.3.6   Government procurement  
3.109.   Government procurement is regulated at both the f ederal and emirate levels. Each Emirate 
has specific provisions on government procurement activities. The UAE is neither a signatory to the 
Agreement on Government Procurement nor an observer to the Government Procurement 
Committee.  
3.110.   In the UAE, most public  procurement is carried out at the level of the Emirates ( Table 3.7 ). 
In 2020, total government expenditure on goods and services amounted to AED 101.1 billion, to 
which the Federal Government contributed AED 24.4 billion and the Emirates ' Governments 
AED 76.7 billion.118 According to the authorities, federal government purchases from foreign 
suppliers are mostly related to strategic goods (such as medical equipment and medicines) and 
single -source products in cases where contractors do not have a local distributor in the UAE. Foreign 
suppliers are also engaged in defence procurement by the Federal Government.  
Table 3.7 Government expenditure on goods and services  
(AED billion)  
 2016  2017  2018  2019  2020a 
General Government  62.3 91.0 86.6 119.4  101.1  
Federal Government  23.0 21.1 22.5 26.2 24.4 
State (Emirates) Governments  39.2 69.9 64.1 93.2 76.7 
a Preliminary data.  
Source:  Based on IMF data, Government Finance Statistics . Viewed at: https://data.imf.org/ . Data for 2020 
provided by the authorities.  
3.3.6.1   Procurement at the federal level  
3.111.   During the period under review, the main legislative change at the federal level was the 
issuance, on 6 January 2019, of Cabinet Resolution No.  4 of 2019 on Procurement Regulations and 
Storehouse Management at the Federal Government.119 This is the principal legislation regarding 
 
Main Highlights of the UAE Banking Indicators April 2020. Viewed at: https://ce ntralbank.ae/sites/default/files/ 
2020-06/Main%20Highlights%20of%20the%20UAE%20Banking%20Indicators%20 -%20April%202020.pdf ; 
and Central Bank of the UAE (2020), Main Highlights of the UAE Banking Indicators December 2020. Viewed 
at: https://www.centralbank.ae/sites/default/files/2021 -
02/Main%20Highlights%20of%20the%20UAE%20Banking%20 Indicators%20%28English%29%20 -
%20December%202020_010221.pdf . 
116 Federal Competitiveness and Statistics Centre.  
117 WTO documents G/STR/N/4/ARE, G/STR/N/7/ARE, G/STR/N/10/ARE, G/STR/N/11/ARE, 
G/STR/N/12/ARE, G/STR/N/13/ARE, G/STR/N/14/ARE, G/STR/N/15/ARE, G/ST R/N/16/ARE, G/STR/N/17/ARE, 
G/STR/N/18/ARE, 28  May 2020.  
118 The WTO Secretariat did not have access to government procurement statistics for the UAE. As a 
proxy, data on government expenditure on goods and services were used.  
119 Viewed at: https://www.mof.gov.ae/en/lawsAndPolitics/pu blic-finance -sector/public -financial -
management/Documents/Cabinet+Resolution+No.+(4)+of+2019+Procurement+Regulation+and+Storehouse
+Management+in+Federal+Government+.pdf . WT/TPR/S/ 423 • United Arab Emirates  
 
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  procurement by federal entities; it replaced Cabinet Resolution No.  32 of 2014. Public -private 
partnerships carried out by federal entities are regulated under Cabinet Resolution No.  1/1 of 2017.  
3.112.   The aims of Cabinet Resolution No.  4 are to organize and unify procurement procedures for 
federal entities, reduce costs, ensure an effective procurement sys tem and align it with international 
best practices. It introduces more flexibility in procurement by, inter alia , eliminating the limits on 
the value of contracts that Ministers can approve. It also decentralizes the procedures for suppliers' 
complaints by  requiring the creation of a dedicated committee in each procuring entity to address 
such complaints, and sets out in greater detail the rules governing the procurement bodies in each 
entity. In addition, the Resolution reduced the prescribed periods for s ubmitting bids and offers, and 
increased the thresholds for the use of different procurement methods.  
3.113.    Cabinet Resolution No.  4 applies to procurement of goods and services and public works by 
the Federal Government, including ministries, government agenci es, and specific federal entities.120 
It does not apply to the Ministry of Defence, the State Security Service, or any purchases of military 
character. It also excludes the federal entities that are linked to international agreements or 
obligations of the U AE, partnership contracts with the private sector, and purchases of medicines.  
3.114.   The federal entities covered by Cabinet Resolution No.  4 must prepare their annual 
procurement plans and are responsible for conducting their procurement processes. To that eff ect, 
they must establish their own procurement bodies, i.e. a Procurement Organizational Unit, a 
Procurement Committee, an Open -bidding Procedures and Bids Receiving Committee, an Inspection 
and Evaluation Committee, and a Suppliers Grievance Committee. Th e procuring entities and their 
staff are obliged to uphold the highest levels of transparency and professional integrity, follow open 
competitive procedures, preserve impartiality and autonomy, announce their procurements through 
the electronic procurement  system or through periodical publications, and avoid conflicts of interest.  
3.115.   The Ministry of Finance (MOF) operates an advanced e -procurement system for all federal 
entities, which contains a list of all purchases to be made by the MOF, other ministries, a nd federal 
agencies. Through this system, federal entities can launch tenders, invite bids, and announce the 
awarding of contracts. Also, suppliers and contractors can submit their bids.  
3.116.   To participate in government procurement, suppliers are required to register on the Federal 
Suppliers Register maintained by the MOF. To be included in the Register, a supplier must be a 
citizen of the UAE, a company registered in the UAE under the federal Commercial Companies Law 
(including wholly foreign -owned companies) , or a branch of a free zone company provided it is 
registered outside the free zone. In addition, the company must be licensed to practice commercial 
activities, and at least one of its partners or service agents must be a UAE citizen. Registration is 
subject to the payment of fees unless exemptions apply. The MOF has recently eased the procedures 
for registration to encourage more companies, including SMEs, to participate.  
3.117.   Depending on the value and nature of the procurement, federal entities may use one of the 
procurement methods stipulated in Article  25 of Cabinet Resolution No.  4. Table 3.8  provides a brief 
description of some of these methods and their corresponding criteria. The "General Procedure" 
(open tendering) is mandatory for procurements with a  value exceeding AED 10 million. For 
procurements above AED 250,000 but not exceeding AED 10 million, "Practice" (limited tendering) 
or open tendering may be used. The "Direct Solicitation of Offers" (direct purchases or quotations) 
can be used when the va lue of the procurement does not exceed AED 250,000. In addition, subject 
to specific conditions, Cabinet Resolution No.  4 allows for the use of other procurement methods, 
i.e. competition, competitive dialogue, direct order, pricing agreements, and outstan ding advance.121 
3.118.   In exceptional cases, federal entities may procure using the "Urgent Procedure".122 This 
procedure is available only when procurement is carried out through open or limited tendering; in 
both cases, it is possible to reduce the bidding period to seven working days. It should be noted that 
 
120 These include  the General Authority for Civil Aviation, the Emirates Real Estate Corporation, the 
Federal Electricity and Water Authority, the Emirates Securities and Commodities Authority, the Insurance 
Authority, the Emirates Post Group Holding, the National Transport Authority, the TRA , UAE University, and 
Zayed  University.  
121 Cabinet Resolution No.  4 of 2019 , Articles 33 -37. 
122 Cabinet Resolution No.  4 of 2019 , Article  38. The "exceptional cases" allowing for the use of the 
urgent procedure are not defined in the Resolution.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Cabinet Resolution No.  4 reduced considerably the  submission periods for bids and offers, compared 
to the periods stipulated in the former Cabinet Resolution No.  32 of 2014; the authorities explain 
that the main reason for reducing these periods is to facilitate purchases in emergency cases.  
Table 3.8 Selected procurement methods and criteria  
Method  Thresholds/ criteria  Requests sen t to  Submission period  
General procedure 
(open tendering)  Mandatory: more than AED 10 million  
Optional: AED 250,000 -
AED 10 million  General invitation to 
all interested parties 
via e-procurement 
and publications  No less than 15 working days 
from the day following the 
announcement of the tender  
 
Practice  
(limited tendering)  AED 250,000 -AED 10 million  Registered suppliers  No less than 10 working days 
from the day following the 
request of offers  
 
Direct solicitation 
of offers (direct 
purchases)  Up to AED 250,000  Registered suppliers 
(at least three offers 
must be obtained)  n.a. 
Competition  Logos, models, drawings, and 
engineering plans  General  n.a.  
Competitive 
dialogue  More than AED 5 million, and 
contract is multi -stage, overlaps with 
other projects, has a term of more 
than one year, or requires more than 
one supplier  Qualified and 
registered suppliers  
(at least three 
suppliers)  20 working days following 
the day the i nvitation was 
sent 
Direct order  Up to AED 1 million. In cases of single 
source, declared emergency, utmost 
necessity  Supplier  n.a.  
n.a. Not applicable.  
Source:  Cabinet  Resolution No.  4 of 2019, Articles 25 and 30 -35. 
3.119.   The authority to approve a contract lies with the federal entity, i.e. the Minister or whoever 
is delegated by the entity. Ministers have the power to approve contracts as they see fit regardless 
of the value (there is no upper limit), provided they state the reasons and justification for their 
decision. Approval of contracts by delegated officials is subject to value thresholds depending on 
their rank and the procurement method (Table 3.9). Fragmentation  of procurements to bypass the 
authority of a higher -ranking official is prohibited.  
Table 3.9 Public procurement thresholds for approval  
Method  Undersecretary  Assistant 
Undersecretary  Director of Financial 
Resources/Procure -
ment Department  
Solicitation of offers (open 
and limited tenders)  AED 15 million  AED 5 million  AED 3 million  
Direct order  AED 1 million  AED 500,000  AED 250,000  
Source:  Cabinet Resolution No.  4 of 2019, Article  4. 
3.120.   Value for money remains the main objective of public procurement; it is construed as the 
best combination of an item's cost and quality over its expected lifetime, or its suitability to meet 
the requirements of the procuring entity. Contracts are to be awarded to the most economically 
advantageous bid  that is the best in technical terms and offers the lowest price.123 
3.121.   Under the GCC Unified Rules on Granting Priority in Government Procurements to National 
Products and Products of National Origin (1987), products from other GCC member States qualify 
for a price preference of 10%.  
3.122.   Generally, Cabinet Resolution No.  4 does not appear to make a distinction between domestic 
and foreign goods and services. However, with respect to the solicitation of offers for open and 
 
123 Cabinet Resolution No.  4 of 2019 , Article 6. WT/TPR/S/ 423 • United Arab Emirates  
 
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  limited tenders, it requires that priority  be given to "products of the national industry" when 
establishing technical specifications, if such products meet the required needs.124 
3.123.   The Government actively promotes the participation of small and medium -sized enterprises 
(SMEs) in federal procurement.  A price preference of 10% is granted to bids by UAE companies that 
receive support from SME funds under federal or local laws, provided that their capital does not 
exceed AED 10 million. The same price preference is given to "green" companies and to bids offering 
"green" goods and services produced or manufactured in the UAE.125 
3.124.   The UAE also provides a 10% set -aside of federal procurement for SMEs. Federal entities 
are required to indicate in their annual procurement plans the goods and services that can be  
provided by suppliers who benefit from SME support funds.126 In addition, companies receiving 
support from SME funds are exempted from registration fees in the Federal Suppliers Register, 
provided their capital does not exceed AED 10 million over the first  two years from the date of 
registration. Exemptions from the obligation to submit a final guarantee (bid bond) are available for 
bids to supply goods for less than AED 1 million, and for bids for consulting services of less than 
AED 3 million.127 The exemp tion from submitting a final guarantee also applies to companies to 
which the Government contributes at least 51% of their capital.  
3.125.   As part of a broader initiative to reduce government fees in support of UAE businesses 
(especially SMEs) during the COVID -19 pandemic, in May 2020, the MOF reduced all supplier 
registration fees by 50%, and cancelled all registration renewal fees and tender purchase fees.128 
3.126.   In 2017, the MOF implemented the Procurement -to-Pay (P2P) automation project for 
purchases by federal ent ities. P2P is aimed at eliminating all manual tasks, streamlining collaboration 
among procurement departments, and saving costs through increased accuracy and reduced manual 
labour. The authorities indicate that the P2P has reduced the procurement cycle ti mes, increased 
efficiency, and enabled proper governance of the procurement process by adding controls and 
submitting all procurement steps to auditing.  
3.127.   Currently, the MOF is developing a digital Government Procurement Platform to make federal 
procurement faster and more accessible to UAE companies. This initiative, launched in April 2019, 
is expected to increase cost effectiveness, and reduce procurement times from 60 days to 6 minutes. 
The platform will offer greater flexibility in procurement processes, streamline procedures for 
suppliers and users, and incentivize the participation of SMEs in federal procurement. The latter will 
be done through the following measures in favour of SMEs: (i)  simplified registration procedures; 
(ii) a requirement that at le ast three SMEs be invited to each tender; (iii)  a 10% bonus in the scoring 
process; (iv)  exemption from submitting a performance bond; and (v)  monitoring of yearly spending 
by purchasing entities to ensure SMEs receive a "fair" share of federal procurement s. Moreover, the 
new platform will enable the use of framework agreements for categories of items frequently 
procured across federal entities, hence contributing to the speeding -up of purchasing processes and 
a reduction in costs. Overall, the platform wil l support the digital transformation of federal 
procurement, and it is expected to be operational for all federal entities in April 2022.  
3.3.6.2   Procurement at the emirate level  
3.128.   At the local level, almost all Emirates have their own procurement departments and 
regulations applicable to the procurements made by local public authorities ( Table 3.10 ). Generally, 
local procurement laws are substantially similar to the federal procurement law, although some 
matters may be addressed differently in each Emirate.  
 
124 Cabinet Resolution No.  4 of 2019 , Article  21. 
125 Cabinet Resolution No.  4 of 2019 , Article  27. 
126 Cabinet Resolution No.  4 of 2019 , Article  18. This provision also requires federal entities to indicate 
in their annual procurement plans the goods an d services that can be provided by green companies and 
companies contributing to social responsibilities.  
127 Cabinet Resolution No.  4 of 2019 , Article  43. 
128 Gulf Today  (2020) , "MoF Announces New Decisions for Federal Entities in the UAE ", 30 May 2020. 
Viewed at: https://www.gulftoday.ae/en/business/2020/05/30/mof -announces -new-decisions -for-federal -
entities -in-the-uae. WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.129.   Suppliers and contractors wishing to do business with government entities at the emirate 
level must register with the local authority that manages that Emirate's e -procurement system. Prior 
to that, they must obtain the necessary licences to practice comme rcial activities from the local 
competent authority such as the Department of Economic Development. Foreign suppliers may be 
required to partner with UAE nationals or to have a local service agent to participate in public tenders.  
Table 3.10 Public procurement authorities and regulations at the emirate level  
Emirate  Authority  Regulation  E-procurement portal or  
registration portal  
Abu Dhabi  Department of 
Government Support,  
Government 
Procurement Office  Abu Dhabi 
Procurement Standards 
issued in April 2021  https://adgpg.gov.ae  
Dubai  Department of 
Finance  Law No.  12 of 2020 on 
Contracts and 
Warehouse 
Management in Dubai 
Government  https://esupply.dubai.gov.ae/web/about -
esupply.html  
 
Sharjah  Finance Department  Law No.  8 of 2017 
Concerning Tenders, 
Auctions and Stored 
Warehouse  https://www.eprocurement.sfd.gov.ae/web
/login.html  
 
Ajman  Department of 
Finance  Emiri Decree No.  11 of 
2011 regarding the 
issuance of the 
Financial Law for the 
Government of Ajman  https://www.ajmanded.ae/en/tenders.aspx  
 
Ras Al 
Khaimah  Finance Department  A set of government 
laws and decrees 
regulating purchases in 
the Ras Al Khaimah 
Government  https://finance.rak.ae/en/pages/evaluation.
aspx 
 
Source:  Information provided by the authorities; and UAE Government Portal, Government Tendering and 
Awarding . Viewed at: https://u.ae/en/information -and-services/business/government -tendering -
and-awarding . 
3.130.   During the period under review, the Emirate of Dubai issued Law No.  12 of 2020 on Contracts 
and Warehouse Management in Dubai Government, which came into effect on 1 January 2021. The 
new law established a framework to standardize the procurement processes of all Dubai government 
entities with the aim of achieving financial efficiency. It also seeks to foster transparency, integr ity, 
and equal opportunity among suppliers, and to provide a legal framework for automating 
procurement as part of Dubai's smart transformation objectives. The law mandates the Department 
of Finance to create guidelines for the governance of procurement an d to draft policies and decisions 
to unify procurement processes; it also stipulates the creation of a Central Registry of Suppliers.  
3.131.   In Abu Dhabi, the Government Procurement Office was set up as per Law No.  4 of 2020 
regarding the Establishment of the Department of Government Support. According to Article  5, one 
of the objectives of the Department of Government Support is to regulate go vernment procurement 
by setting directives, submitting them to the Executive Council for approval, supervising their 
implementation, and preparing reports thereon. The Law also stipulates the need to develop an 
information technology platform for governmen t procurement, and to strengthen partnerships with 
the private sector to modernize the government support sector and increase efficiency and 
effectiveness. In April 2021, the Department of Government Support circulated the new Abu Dhabi 
Procurement Standar ds among the Emirate's government entities. On 1 July 2021, the Department 
was mandated to provide a unified procurement framework aiming to elevate procurement into a 
strategic function to drive value for the Abu Dhabi government entities.  
3.132.   Measures to pro mote SMEs' participation in government procurement are also applied at the 
emirate level. The Government of Dubai requires that all government entities and companies in the 
Emirate, in which the Government has at least 25% ownership, provide preferences fo r SMEs, 
including a 10% set -aside, an exemption from registration fees, a 5% discount in rent for entities in 
commercial centres, and a 5% percent price preference. In April 2020, the Government of Abu Dhabi 
announced a set -aside of 15% of procurement spen ding and annual contracts to micro, small, and WT/TPR/S/ 423 • United Arab Emirates  
 
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  medium -sized enterprises (MSMEs).129 MSMEs are also exempted from providing bid bonds and 
performance bonds.  
3.3.6.3   Special procurement regimes  
3.133.   Certain public authorities have specific legislation governing their proc urement and tendering 
activities. For instance, procurements for the UAE Armed Forces and the Abu Dhabi Police are 
governed by special procurement rules. The Tawazun Economic Council is in charge of managing 
such procurements; it awards contracts, supervis es their execution, allocates procurement budget, 
registers suppliers, and develops procurement legislation and policies.130 Foreign  defence 
contractors that are awarded contracts with a value exceeding USD  10 million must participate in 
the Tawazun  Economi c Program, which requires them to establish joint ventures with UAE 
companies that yield profits equivalent to 60% of the contract value within a seven -year period.131 
3.134.   As part of its efforts to promote economic diversification, support the national industry , and 
create jobs for UAE citizens, the UAE has progressively put in place a scheme to increase national 
value -added or In -Country Value (ICV), which is mainly linked to government procurement. The ICV 
programme was originally launched in 2018 in the Emira te of Abu Dhabi. Under this scheme, 
companies participating in government tenders are assessed according their contribution to the local 
economy by way of an ICV certificate; those with the highest scores are given preference in the 
process of awarding pro curement contracts.  
3.135.   In September 2021, the UAE Government launched the National Value -Added Program, 
expanding the ICV scheme to the national level. The new programme is one of the main pillars of 
the National Strategy for Industry and Advanced Technology aimed at enhancing the 
competitiveness of the industrial sector and reducing dependence on imports ( Section 3.3.1 ). The 
National Value -Added Program, which is to be implemented by the Ministry of Industry and Advanced 
Technology, seeks to increase demand f or local goods and services by redirecting more than 42% 
of procurement and contract spending to the national economy. It will gradually incorporate 45 
federal entities and 15 major national companies and is expected to increase the number of approved 
suppliers from 5,000 to 7,300 and the value of purchases from AED 33 billion to AED 55 billion by 
2025.132 Participant suppliers/companies with the highest scores in national value -added will be 
granted preference in goods and services tenders by the federal en tities and main national 
companies.133 In addition, local and foreign suppliers participating in the programme will benefit 
from competitive financing solutions provided by the Emirates Development Bank. The national 
value -added of each company will be assessed based on the following criteria:  (i) cost of 
manufacturing or amount of spending on products and services within the UAE; (ii)  value of 
investment in fixed assets; (iii)  expenditure on recruitment, qualification, and development of 
capabilities of national and resident cadres working in the country; and (iv)  investment in advanced 
technologies, and research and development. Participating companies will be evaluated by 
independent certifying bodies and will be awarded a National Value -Added Certificate.  
3.136.   In the context of the GCC -Singapore  and the GCC -European Free Trade Association (EFTA) 
trade agreements, the UAE has accepted to open its government procurement market for 
procurements by UAE federal government entities (as specifically listed in each agreement), with a 
value above certain thresholds. For the GCC -Singapore agreement, the thresholds are special 
drawing rights (SDR) 134,000 for goods and services, and SDR 5,844,000 for construction services. 
 
129 USTR, 2021 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf . 
130 UAE Government Po rtal, Government Tendering and Awarding . Viewed at: 
https://u.ae/en/information -and-services/business/government -tendering -and-awarding . 
131 U.S. Department o f State, 2020 Investment Climate Statements: United Arab Emirates . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/united -arab-emirates/ . 
132 Middle East in 24 , "Launching the 'National Value Added Program ' to Stimulate National Industries 
and Enhance the Competitiveness of the UAE Economy ", 5 September 2021. Viewed at: https://middleeast.in -
24.com/News/208115.html . 
133 Etisalat (a telecommunications company), Emirates Steel and TAQA (an electricity and water utility) 
were the first main national companies to join the National Value -Added Program. Gulf News Report  (2021) , 
"Leading UAE Firms Join the National In -Country Value Programme ", 11 September 2021 . Viewed at: 
https://gulfnews.com/uae/year -of-the-50th/leading -uae-firms-join-the-national -in-country -value --programme -
1.82191588 . 
 WT/TPR/S/ 423 • United Arab Emirates  
 
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  For the GCC -EFTA agreement, the thresholds are SDR 147,000 for goods and services, and  
SDR 6,438,400 for construction services.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.137.   The UAE recognizes the importance of a strong intellectual property (IP) protection for 
creating a stimulating environment for innovation.134 The UAE National Innovation Strateg y, 
published in 2015, highlights that sound institutions and a sound regulatory environment are key 
constituents of innovation. The Strategy sets as one of its goals to design efficient patent registration 
procedures and raise awareness on intellectual pro perty rights (IPRs).135 Since its last TPR in 2016, 
the UAE has thus made some updates of its intellectual property regime including three major 
changes. First, the repeal of Patent Law No.  17 of 2002 by Federal Law No.  11 of 2021 covering the 
protection of  patents, industrial designs, undisclosed information, and utility certificates. Second, 
the UAE joined the Madrid Protocol in September 2021 (entry into force in December 2021) as its 
125th member. This will allow future trademark applications to be filed  in a single application among 
its 124 member countries. Third, Federal Law No.  36 of 2021 on Trademarks repealed Federal Law 
No. 37 of 1992 on Trademarks as amended. In addition, the Ministry of Economy signed a Roadmap 
for 2019 -2020 to strengthen IP appl ications and develop an innovative environment with the French 
National Industrial Property Institute. Training for students on IP awareness and raising the 
importance of IP registration for owners of SMEs were especially emphasized.136 Between 2018 and 
2021, the UAE improved its ranking in the Global Innovation Index from 38th to 33rd.137 
3.138.   In 2016, Federal Law No.  19 on Combating Commercial Fraud repealed Federal Law No.  4 
of 1979 on Combating Fraud and Deception in Commercial Transactions, notably increasing  potential 
penalties. Article  2 stresses that the Law also applies in the free zones, which have at times been 
used to move counterfeit goods.138 The reinforcement of controls over counterfeit goods and greater 
awareness of customs officials allowed the UAE  to be removed from the United  States' Watch List 
for IP protection in 2021.139 
3.139.   The UAE IP regime is based on several laws covering copyrights and neighbouring rights, 
patents and designs, trademarks, and plant varieties (each detailed below). In addition, the UAE 
complies with the GCC Unified Patent Law of 1992 (as amended) and the provisions of the new 
Trademarks Law align with the GCC Trademark Law.140 
3.140.   The UAE is a member of WIPO (1974); a signatory to the Paris Convention (1996), the Patent 
Cooperation Tr eaty (1999), the Berne Convention (2004), the Rome Convention (2004), the WIPO 
Copyright Treaty (2004), the WIPO Performance and Phonograms Treaty (2005), and the Marrakesh 
Treaty (2016); a contracting party to the Beijing Treaty on Audiovisual Performance s (2020) and 
the Madrid Protocol (2021); and a party to the Budapest Treaty (2021) and the Strasbourg 
Agreement Concerning the International Patent Classification (2022). The UAE accepted the 
amendment to the Agreement on Trade -Related Aspects of Intellect ual Property Rights in 
January  2017. In addition, as a member State of the GCC, the UAE is a party to the GCC patent 
system. The UAE is not a member of the International Union for the Protection of New Varieties of 
Plants but has announced its intention to  join the Union (Section  3.3.7.5).  
 
134 UAE Ministry of Economy, Achievements of the Intellectual Property Sector. Viewed at: 
https://www.economy.gov.ae/english/Knowledge -Section/SDGs/Pages/IP.aspx   
135 UAE National Innovation Strategy, pp.  5 and 8. Viewed at: https://bit.l y/3sOZtnu   
136 Emirates News Agency  (2019), "Ministry of Economy, French INPI to Collaborate Further on 
Intellectual Property Rights", 19 October 2019.  
137 The Global Innovation Index (GII) ranks world economies according to their innovation capabilities, 
through roughly 80 indicators, grouped into innovation inputs and outputs. WIPO (2021), Global Innovation 
Index 2021 , 14th ed. Viewed at: https://www.wipo.int/edocs/pubdocs/en/wipo_pub _gii_2021.pdf   
138 OECD (2018), Governance Frameworks to Counter Illicit Trade . Viewed at: https://www.oecd -
ilibrary.org/docserver/9789264291652 -
en.pdf?expires=1639488626&id=id&accname=o cid195767&checksum=8617C9780B9B4C97E01077FA7902BFD
2.  
139 Emirates News Agency  (2021), "Dubai Customs' IP Protection Efforts Get the UAE Off U.S. 
Anti-Counterfeiting Watch List", 5  May 2021.  
140 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  3.141.   The Ministry of Economy is the institution responsible for most IP matters with some specific 
health and agriculture -related protection issues dealt with by the Ministry of Health and Prevention 
and the MOCCAE. The FCA se ts the policies and procedures in partnership with the emirate customs 
authorities, while enforcement of IPRs at the border is done by the latter under the supervision of 
the FCA. The FCA also organizes trainings on IPRs for all emirate customs authorities  in collaboration 
with the private sector and international organizations to help implement best practices.141 
3.142.   In 2019, the Dubai International Financial Centre (DIFC) (free zone) published the DIFC  
Intellectual Property Law, which applies to any person who owns or claims ownership, uses or 
attempts to use, or seeks to enforce or protect an IPR, or any part thereof, in the DIFC. Under the 
legislative authority of the Emirate of Dubai, the Law follows  the announcement of the Dubai Future 
District project, which will create a district dedicated to the new economy and technologies, by 
connecting the Dubai World Trade Centre, Emirates Towers, and the DIFC.142 The Law integrates the 
UAE federal laws on IP p rotection and adds new dimensions such as several criteria for considering 
a trademark as "well -known" (Article  45) and details on the framework for trade secrets. The DIFC 
is the only free zone to have its own IP law, while all other free zones apply the federal laws.  
3.143.   Following a previous increase in 2015143, the Government decided to reduce fees for 
trademarks first in July 2019 by approximately 25% and again in a second phase by around 25% in 
April 2020, applicable to new and pending trademark application s, to encourage better IP protection. 
Copyrights fees were reduced from AED 300 (legal person) and AED 100 (natural person) to AED  200 
and AED  50, respectively.144 Fees for filing a patent, which had been increased to AED 2,000 for 
companies in 2015, remain ed the same. Individuals submitting a patent application are asked to 
pay AED  1,000.  
3.3.7.2   Patents  
3.144.   Several changes occurred on patent protection during the review period. The Government 
repealed Federal Law No.  17 of 2002 on Regulating and Protecting Industrial Property for Patents, 
Designs, and Industrial Drawings, as amended by Federal Law No.  31 of 2006, through Federal Law 
No. 11 of 2021, planned to be effective in December 2021. The purpose of this legislative change is 
to bring the Law closer to current int ernational standards and best practices. In addition, changes 
occurred at the GCC level, with the GCC Patent Office announcing in January 2021 that it would 
temporarily suspend accepting new patent applications. Since 1998, the GCC Patent Office had been 
providing a mechanism for regional filings of patents, offering protection in all six GCC member 
States after a single patent application was filed and approved by the Patent Office. Until the 
resumption of operations, applicants seeking patent protection i n the GCC member States must file 
applications directly to individual States or through the Paris Convention or Patent Cooperation 
Treaty. Existing pending GCC patent cases will continue to be processed, and patents granted will 
still be protected. The aut horities indicate that after this transitional period, the GCC Patent Office 
will provide customized services for its member States.  
3.145.   According to the new federal law, patents can be granted for each new invention that is 
contrived from a creative idea or c reative enhancement, forms an inventive step, and is capable of 
industrial application. The Law specifies that "inventive" means that it is not axiomatic in the opinion 
of the ordinary craftsperson based on the state of the art. The "novelty" is assessed i f the invention 
has not been disclosed to the public prior to the filing date. Article  5(4) introduces a grace period of 
12 months prior to the filing date, whereby disclosures occurring within this timeframe will not break 
the "novelty" requirement. Paten ts can be granted to new inventions or to a modification, 
enhancement, or addition made to a previous invention. Article  22 indicates that patents do not 
apply, inter alia , to the combination of two or more medicines for the purpose of a medical treatment 
by a licensed pharmacist.  
3.146.   The Ministry of Economy is the competent authority to register patents in the UAE. 
Applications can submit their filing online through the Ministry's website. The new patent law 
 
141 Information provided b y the authorities.  
142 Dubai Future District, About . Viewed at: https://dubaifuturedistrict.ae/about/ ; and DIFC, Intellectual 
Property Law, DIFC Law No.  4 of 2019.  
143 See WTO document WT/TPR/S/338/Rev.1, 4  October 2016, para.  3.118.  
144 Ministry of Economy, Registration of Works . Viewed at: 
https://services.economy.ae/m/Pages/ServiceCard.aspx?WF ID=41 .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  introduces the possibility to file urgent patent app lications open to any applicant after the payment 
of a fee. Pending applications will be made available to the public.  
3.147.   Patent protection runs for 20 years from the date of original filing. Utility certificates may 
also be granted to relatively small inventions of devices with tangible structures (i.e. do not include 
chemicals, materials, methods, or compositions). Utility certificates will be protected for 10 years, 
while industrial drawing and designs will be protected for 20 years under the new law compared to 
10 years previously. A Know -how is protected until it has been published or put at the public disposal 
and the owner has adopted necessary measures to maintain the secrecy needed.145 
3.148.   The new law retains the previous exclusions for patentability that concerned plant varieties, 
animal species, or biological methods of producing plants or animals (with exceptions for 
microbiological methods and their products); diagnostic methods, treatments, and surgical 
operations needed for humans and animals; sc ientific and mathematical principles, discoveries, and 
methods; guides, rules, or methods for business, mental activities, or to play games; and inventions 
that may lead to violation of public order or morals146, and it adds three exclusions (on research on  
plant and animal species, software147, and natural substances). Computer coding or computer 
programs are not patentable. However, business model or system inventions heavily using computer 
algorithms, as well as computer -readable media containing a compute r program for execution in a 
computer, are patentable.148 
3.149.   Patent applications have been increasing steadily since 2011. Ranging between 1,300 and 
1,500 annually until 2014, they reached 1,700 -1,900 during 2015 -19 for resident and non -resident 
applications. The vast majority are non -resident applicants. In addition, abroad applicants have 
submitted around 700 each year since 2016. While the Ministry of Economy used to allow for an 
unlimited number of re -examinations, the new law will enable statutory withdraw al or final rejection 
for the applications that do not satisfy the conditions for registration.149 
3.3.7.3   Copyrights and related rights  
3.150.   There has been no change to the copyright legislation in the UAE since the last Review. 
Registration of copyrights is done throu gh the Ministry of Economy and can be submitted online via 
the Ministry's website.150 
3.151.   Federal Law No.  7 of 2002 on Copyrights and Neighbouring Rights, as amended by Federal 
Law No.  32 of 2006, grants copyright protection to various types of literary, artist ic, dramatic, and 
musical work, as well as works given verbally such as speeches, applied arts such as handicrafts, 
works of drawings including architecture or designs, computer software and applications, databases, 
and similar works. The Law prevents thir d parties from copying without consent and deals with 
infringing works. Protection is automatically granted upon the creation of an original work in material 
form, provided it is not in a category that is excluded from protection (unless an innovative elem ent 
is included) such as legal texts, news reports, and works that have become public property.151 
Registration is not required to achieve protection, but it facilitates the burden of proof in legal 
proceedings.152 
3.152.   Under Article  20 of the Copyright Law, econ omic rights shall be protected for the lifetime of 
the author plus 50 years starting from the first day of the calendar year following their death; joint 
works shall be protected for the duration of the authors' lives plus 50 years starting from the first 
day of the calendar year following the death of the last surviving author. Works of applied art are 
 
145 Federal Law No.  17 of 2002 as amended, Article  39.  
146 UAE Government Portal, Intellectual Property. Viewed at: https://u.ae/en/information -and-
services/busine ss/intellectual -property . 
147 While copyright protection of software is harmonized internationally, many countries do not 
recognize the patentability of software. For more information, see WIPO, Copyright Protection of Computer 
Software . Viewed at: https://www.wipo.int/copyright/en/activities/software.html ; and Computer Programs and 
Business Models . Viewed at: https:/ /www.wipo.int/patents/en/topics/software.html . 
148 Information provided by the authorities.  
149 Information provided by the authorities.  
150 UAE Government Portal, Intellectual Property . Viewed at: https://u.ae/en/information -and-
services/business/intellectual -property  
151 Federal Law No.  7 of 2002 on Copyrights and Neighbouring Rights, as amended, Articles  3-4. 
152 WTO document WT/TPR/S/338, 27 April 2016.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  protected for 25 years from the first day of the calendar year following the year in which the work 
was first published, and broadcasts are protected for 20  years from the date of first broadcast.  
3.153.   As the UAE is a party to the Berne Convention for the Protection of Literary and Artistic 
Works, any works created by nationals of other Berne Convention States are recognized in the 
UAE.153 
3.154.   The number of copyright r egistration increased every year during the review period, leading 
to a substantial overall augmentation from 590 in 2016 to 1,984 in 2020. The authorities received 
308 applications for computer programs and applications in 2020 compared to 117 in 2016.154 
3.3.7.4   Trademarks  
3.155.   Trademark legislation in the UAE was changed in late 2021 with the development of the new 
Federal Law No.  36 of 2021 on Trademarks. At the time of writing, the executive regulations had 
not yet been made available, and the provisions of the Law could not be covered in this Review.  
3.156.   Under the previous law (Federal Law No.  37 of 1992 on Trademarks as amended by Federal 
Law No.  19 of 2000 and Federal Law No.  8 of 2002), all that takes a distinctive shape composed of 
names, words, signatures, letters,  numbers, drawings, symbols, addresses, hallmarks, stamps, 
pictures, engravings, advertisements, packages, or any other mark or a combination thereof if used 
or meant to be used either in distinguishing goods, products, or services, or establishing that th e 
goods or products are owned by the owner of the trademark can be considered as a trademark.155 
The voice accompanying a trademark is considered a part of it.156 A trademark must be distinctive 
and not confusingly similar to earlier trademarks. The 1992 Law  on Trademarks does not contain 
provisions specific to geographical indications (GIs); nevertheless, Article  3 forbids registration of 
geographical names and data should their use create confusion as to the origin or source of the 
goods, products, or servi ces. The authorities indicate that some undue references to countries have 
been rejected.  
3.157.   Under the 1992 Law on Trademarks, trademarks are registered with the UAE Trademark 
Office (integrated to the Ministry of Economy) in one of the classes within the sta ndard international 
classification of goods and services. Applications that cover multiple classes are not permitted under 
the Law, hence separate applications must be filed for marks used across different ones.157 
Trademark applications can be submitted on line. After approval, the trademark will be issued in 
two UAE Arabic newspapers at the expense of the applicant, and potential complainants have 30 
days to submit their opposition.158 
3.158.   Duration of protection is for 10 years under the 1992 Trademarks Law, and  can be renewed 
indefinitely for additional periods of 10 years. Third parties can claim the cancellation of a trademark 
if it has not been used for five consecutive years.159 Article  4 of the Law specifies that trademarks 
having international goodwill tran scending the boundaries of their country of origin may not be 
registered, unless a request is made by its original owner or someone acting on their behalf. The 
authorities clarified that the protection enjoyed by well -known trademarks is automatic.  
3.159.   Upon im plementation of the Madrid Protocol (entry into force was scheduled for December 
2021), UAE trademarks applicants will be able to file a single international application and its 
protection will be extended to all other 124 Madrid Protocol member countries (of the GCC, Oman 
and the Kingdom of Bahrain are members of the Protocol). This centralized filing of trademarks 
system will increase the effectiveness of trademark registration, which currently has to be made 
 
153 WTO document WT/TPR/S /338, 27  April 2016.  
154 Information provided by the authorities.  
155 Federal Law No.  37 of 1992, as amended, Article  2. 
156 UAE Government Portal, Intellectual Property . Viewed at: https://u.ae/en/information -and-
services/business/intellectual -property . 
157 Federal Law No.  37 of 1992 as amended, Article  8. 
158 Federal Law No.  37 of 1992 as amended, Arti cle 14. 
159 Federal Law No.  37 of 1992 as amended, Articles 19 and 22.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  through separate applications in each country.  The Madrid Protocol allows for a single payment of 
fees to apply for protection.160 
3.160.   Cabinet Resolution No.  17 of 2019 allows trademark and copyright owners to register their 
trademarks and copyrights for protection at any customs authority in the UAE if th ese were already 
pre-recorded by the Ministry of Economy.  
3.161.   The new UAE Law on Trademarks aligns with the GCC Trademark Law. The GCC law does 
not establish a unified registration or enforcement system; it aims to create a single set of 
regulations for tradem ark protection that applies uniformly across all the GCC member States. 
Therefore, registering a trademark in all six GCC member States requires filling separate national 
trademark applications.  
3.162.   Applications for trademarks remained stable over the review p eriod, at around 18,000 -
19,000 annually. Registration can take one or more years to be completed once the application is 
done; thus, in a given year, registrations can outnumber applications ( Table 3.11 ). 
Table 3.11 Trademark registrations and applications in the UAE, 2016 -20 
Year  2016  2017  2018  2019  2020  
Applications  18,777  19,055  18,455  18,686  18,620  
Registrations  16,726  26,149  22,417  21,543  16,781  
Source:  Information provided by the authorities.  
3.3.7.5   Plant variety protection  
3.163.   Federal Law No.  17 of 2009 on the Protection of Plant Varieties is based on the principles of 
the International Union for the Protection of New Varieties of Plants (UPOV), of which the UAE is 
currently an observer member. The UAE authorities indicated to UPOV in 2020 their intention to 
adhere to the Union, and to this effect have issued a draft law to make current Emirati plant 
protection regulations compliant with the requirements of UPOV.161 Accordingly , UPOV reviewed and 
accepted the draft and requested that the UAE issues the law to enable its full membership.162 
3.164.   According to Ministerial Decision No.  377 of 2017, registration for the protection of new plant 
varieties is to be done through the Director o f the Agriculture Development and Health Department 
at the MOCCAE. Protection of the plant breeder's right extends to 20 years after the right was 
granted, and 25 years in the case of varieties of vines and trees.  
3.3.7.6   Enforcement  
3.165.   All major laws on patents and designs, copyrights, and trademarks include provisions that 
intend to prevent violations of IPRs. Thus, various provisions of each of these laws lay out penalties 
for IPR violations that include monetary fines and prison sentences. In coordination with the  FCA, 
emirate customs authorities are in charge of combating IPR fraud, such as seizing counterfeit goods 
to uphold the UAE's IPR protection and customs regulations. Customs can take legal action in terms 
of seizing counterfeit goods after having received a complaint by the trademark owner or 
pre-emptively to protect consumers from being misled.163 To request an investigation of customs 
inspection for a suspected infringement of IPRs, the complainant must pay a fee of AED 2,000.164 
Once a suspension or a seizure is made, customs coordinates with private sector actors to give 
feedback and potentially take legal action.165 
3.166.   Within the Emirates, several authorities have different scopes for the control of goods, thus 
Dubai Customs has the authority to search and seize counterfeit products at the Emirate's borders 
 
160 WIPO, Madrid – The International Trademark System . Viewed at: https://www.wipo.int/madrid/en/ . 
161 UPOV (2020), Analysis Document C/Analysi s/2020/2 , 22 May 2020, Annex 1. Viewed at: 
https://www.upov.int/edocs/mdocs/upov/en/c_54/c_analysis_2020_2.pdf . 
162 Information provided by the authorities.  
163 Information pro vided by the authorities.  
164 FCA, Intellectual Property . Viewed at: 
https://fca.gov.ae/En/HomeRightMenu/Pages/IntellectualProperty.aspx?SelectedTab=8 .  
165 Information provided by the authorities  WT/TPR/S/ 423 • United Arab Emirates  
 
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  and in Dubai's free zones, whereas the Duba i Police and the Dubai Department of Economic 
Development manage controls within the Dubai (non -free zones) market.  
3.167.   In addition to Federal Law No.  19 of 2016 on Combating Commercial Fraud, the authorities 
strengthened their arsenal to combat IPR violations  during the review period by signing a 
Memorandum of Understanding (MoU) between the Dubai Customs and the Brand Owners' Protection 
Group (GCC and Yemen).166 The aim of this MoU is to work on a framework of cooperation to prevent 
the import of counterfeit a nd pirated goods through bilateral exchange of information, awareness 
training for customs officials, and testing of goods samples.167 The DIFC Intellectual Property Law of 
2019 (Section 3.3.7.1) also  introduces penalties issued by the DIFC Court, ranging from USD  5,000 
to USD  40,000 in case of infringement, which can be doubled in case of repetition, in some cases 
much higher than federal law provisions.168 Under the new federal Patent Law, the range o f penalties 
was increased to AED 100,000 (minimum) to AED  1 million (maximum). The authorities indicate 
that as of October 2021 the Commissioner of Intellectual Property had received one infringement 
complaint regarding a trademark for the year 2021, resul ting in a fine of USD  25,000 and the 
temporary suspension of the infringer's commercial licence.169 
 
 
166 Non-profit organization that aims to achieve improvement in the protection of IP and especially 
brand protection environment across the Gulf region. Brand Owners' Protection Group, About BPG . Viewed at: 
https://gulfbpg.com/about/ . 
167 Information provided by the authorities.  
168 DIFC, Intellectual Property Law, DIFC Law No.  4 of 2019, Schedule 3.  
169 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture and Fisheries  
4.1.1   Overview  
4.1.  The agriculture, forestry, and fishing sector in the United Arab Emirates (UAE) grew as a share 
of GDP during the review period, but remained relatively small at less than 1% (from 0.65% in 2016 
to 0.78% in 2020 ) (Section  1.1).1 In 2020, the value added of the sector was worth 
AED 12.1 billion.2 Because the UAE is pro jected to have 11 million people by 2050, has less than 
5% arable land, and imports 90% of its food, increasing local food stock and securing foreign supply 
are top priorities for the Government.3 To this end, several policy plans and investment programme s 
have been implemented in recent years, centring on new technologies and innovative methods 
(Section  4.1.3). In the meantime, the share of agriculture in the labour market continued to decline, 
and stood at 1.4% in 2019 (compared to 1.8% in 2016), signifi cantly lower than the 8.5% it 
accounted for in 1990.4 
4.2.  During the review period, the value of agricultural production (field crops, vegetables, and fruit 
trees) rose by 3.7% to AED 4.1 billion, while total crop area increased by 15.3%. Abu Dhabi, as the 
largest Emirate, is by far the main contributor to the agriculture sector. In 2020, 67% of total land 
use for agriculture was located in Abu Dhabi, followed by Ras Al Khaimah (10%). For an Emirate of 
Abu Dhabi's size, its shares of total production and total  value are relatively small (44% and 55%, 
respectively), which might be explained by a much higher proportion of fallow land than in other 
Emirates.5 
4.3.  Total value of crops is distributed among fruit trees (61%), vegetables (22%), and field crops 
(17%). The value of vegetable production more than doubled in four years. Vegetables have by far 
the highest ratio of value produced per land use. Table 4.1 deta ils the total area, production, and 
value for field crops, vegetables, and fruit trees between 2016 and 2020.  
Table 4.1 Agriculture production and value by types of crops for 2016 -20 
(donum (area), tonnes (pr oduction), or '000 AED (value))  
 2016  2017  2018  2019  2020  
Field crops: area  92,439  111,955  77,591  109,644  107,704  
Field crops: production  506,677  645,282  467,903  579,785  476,958  
Field crops: total value  845,768  1,066,119  697,864  859,305  695,338  
Vegetables: area  43,974  55,481  53,204  65,847  65,088  
Vegetables: production  156,137  226,108  246,523  304,474  336,580  
Vegetables: total value  350,163  538,800  686,387  817,084  895,683  
Fruit trees: area  365,596  393,228  393,940  406,051  406,047  
Fruit trees: production  445,646  368,248  376,347  382,588  394,585  
Fruit trees: total value  2,748,505  2,361,466  2,237,427  2,468,721  2,501,463  
Note:  1 donum = 1,000  m2. 
Source:  Federal Competitiveness and Statistics Centre.  
4.4.  The three main field crop types cultivated in the UAE in 2020 were Rhodes grass, elephant 
grass, and alfalfa. Dates are by far the principal fruit grown in the UAE, representing 92.6% of the 
total value of fruit trees in 2020. Other fruits cultivated include mangos, figs, and limes. Vege tables 
are more diversified, with cucumbers contributing to 31% of the total value of production, followed 
by tomatoes (27%) and squash (6%).6 
 
1 WTO Secretariat calculations, in constant 2010 prices.  
2 Federal Competitiveness and Statistics Centre, GDP at Current Prices by Economic Sectors . 
3 Ministry of Food and Water Security (2021), The Future of Food: Towards Future Food Security 2051 . 
Viewed at: 
https://foodsecurity.gov.ae/en/download_report/AtoAIyMU4R9umA9wDQVT5P0LjqIfVcsPgrYzsdNx.pdf . 
4 World Bank, Employment in Agriculture (% of Total Emplo yment) . Viewed at: 
https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=AE . 
5 2020 data were provided by the authorities. Federal Competitiveness and Statistics Centr e, Statistics 
by Subject: Agriculture, Environment and Energy . Viewed at: https://bit.ly/3duiDsn . 
6 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.5.  In 2020, the UAE counted almost 5 million livestock animals in its territory, among which were 
mainly goats, she ep, camels, and cattle (in decreasing order). Most (70%) were located in the 
Emirate of Abu Dhabi. Compared to 2016, the year of the last Review, total livestock increased by 
about 150,000 animals (+3%).  
4.1.2   Trade  
4.6.  The UAE's small agriculture and fishery produc tion means that it imports most of its food for 
consumption. While agriculture and fisheries represented 0.78% of GDP in 2020 and not more than 
1.1% of non -oil GDP, their share of total trade is much more substantial at 7% -8%. On a slight 
declining trend f rom 2016 (8.1%) to 2019 (7.4%), the share of imports of agricultural and fish 
products in the total of UAE's imports rose again in 2020 (8.2%) in the context of the pandemic. 
Between 2015 and 2020, the top three partners for imports were on average: the Eu ropean  Union 
(EU-27) (16.6%), India (10.4%), and Brazil (8.1%).  
4.7.  For total non -oil exports (including re -exports), top partners for the period 2015 -20 were 
regional partners, namely Iraq (14%), the Islamic Republic of Iran (12.9%), and the Kingdom of 
Saudi Arabia (9.1%). Agricultural and fishery products exports and re -exports represented an 
average of 7.4% of total non -oil exports and re -exports between 2016 and 2020. Total value of 
exports (including re -exports) of agriculture and fishery products increase d by 25% between 2016 
and 2019 before dropping to 2016 levels in 2020.7 
4.8.  The UAE's applied MFN tariff for agricultural products (not including fish and fishery products) 
of 6.7% was higher than its total simple average of 5 % (Section 3.1.3).  This relativel y high average 
is explained by the high tariff average of beverages, spirits, and tob acco of 28.4%, while other 
categories' simple average ranges between 3% and 5.9%. Of tariff lines for WTO agricultural 
products, 21.2% were duty -free.  
4.9.  Tables 4.2 and 4.3 record trade in agricultural and fishery products (for more information on 
fisheries, see Section 4.1.4) for 2016 -20. Only products whose share exceeded 1% of their 
respective category are included.  
Table 4.2 Imports of agricultural and fish products and major partners, 2016 -20 
(USD million)  
HS code  Product 
description  2016  2017  2018  2019  2020  2016 -20 
avg Top three major 
partners in 
2015 -20 (% of 
total)  
08 Edible fruit and 
nuts 2,103  2,208  1,957  2,363  1,618  2,050  United  States 
(20.4%); India 
(13.7%); 
South  Africa 
(10.1%)  
02 Meat and edible 
meat offal  1,641  1,706  1,870  2,282  1,452  1,790  Brazil (42.7%); 
Australia (13.7%); 
India (9.5%)  
24 Tobacco and 
manufactured 
tobacco substitutes  2,409  2,307  1,525  1,200  1,021  1,692  Republic of Korea 
(26.6%); EU -27 
(18.5%); China 
(9.9%)  
04 Dairy produce  1,583  1,816  1,851  1,726  1,449  1,685  EU-27 (30%); 
New Zealand 
(26.5%); Kingdom 
of Saudi Arabia 
(20.5%)  
10 Cereals  3,102  1,301  1,257  1,080  1,057  1,559  India (33.6%); 
Canada (27.8%); 
Russian Federation 
(7.5%)  
07 Edible vegetables 
and certain roots 
and tubers  1,292  1,342  973 946 849 1,080  India (14.1%); 
Canada (12.6%); 
EU-27 (11.8%)  
 
7 WTO Secretariat calculations, based on trade statistics provided by the au thorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  HS code  Product 
description  2016  2017  2018  2019  2020  2016 -20 
avg Top three major 
partners in 
2015 -20 (% of 
total)  
22 Beverages, spirits 
and vinegar  1,117  1,150  1,080  1,141  655 1,029  EU-27 (39.8%); 
United  Kingdom 
(20.8%); 
United  States 
(7.8%)  
12 Oil seeds and 
oleaginous fruits  953 940 934 1,002  925 951 Canada (33.4%); 
EU-27 (24.7%); 
United  States 
(12.8%)  
19 Preparations of 
cereals, flour, 
starch or milk; 
pastrycooks' 
products  1,080  887 856 946 807 915 EU-27 (27.8%); 
Kingdom of 
Saudi  Arabia 
(15.1%); Oman 
(9.9%)  
21 Miscellaneous 
edible preparations  956 924 932 914 789 903 EU-27 (27.4%); 
United  States 
(23.9%); 
United  Kingdom 
(5.3%)  
17 Sugars and sugar 
confectionery  780 1,361  763 553 457 783 Brazil (59.3%); 
EU-27 (8.6%); 
India (6.5%)  
09 Coffee, tea, mate 
and spices  685 734 732 683 623 691 India (22.7%); 
Kenya (15.2%); 
Guatemala 
(11.8%)  
18 Cocoa and cocoa 
preparations  557 560 710 746 462 607 EU-27 (39%); 
Russian  Federation 
(10.1%); 
Switzerland 
(6.5%)  
03 Fish and 
crustaceans  566 618 649 648 453 587 India (29.5%); 
Norway (10.3%); 
Viet Nam (7.8%)  
15 Animal or 
vegetable fats and 
oils and their 
cleavage products  604 625 608 515 409 552 Indonesia 
(28.6%); Malaysia 
(11.4%); Ukraine 
(10.9%)  
20 Preparations of 
vegetables, fruit, 
nuts or other parts 
of plants  597 587 543 558 383 534 EU-27 (28.4%); 
Kingdom of 
Saudi  Arabia 
(16.1%); 
United  States 
(10.2%)  
Source:  WTO Secretariat calculations based on data from the Federal Competitiveness and Statistics Centre.  
Table 4.3 Exports (including re -exports) of agricultural and fish products and major 
partners, 2016 -20 
(USD million)  
HS code  Product 
description  2016  2017  2018  2019  2020  2016 -20 
avg Top three major 
partners in 
2015 -20 (% of 
total)  
24 Tobacco and 
manufactured 
tobacco substitutes  4,280  5,107  4,531  4,652  3,772  4,468  Iraq (27.3%); 
Islamic Republic of 
Iran (9.1%); 
Afghanistan 
(7.3%)  
08 Edible fruit and 
nuts 721 771 1,199  1,360  1,009  1,012  Islamic Republic of 
Iran (26.2%); 
Kingdom of Saudi 
Arabia (10.4%); 
Oman (8.7%)  
04 Dairy produce  573 539 946 988 724 754 Kingdom of Saudi 
Arabia (19.6%); 
Oman (15.4%); 
Iraq (12.8%)  WT/TPR/S/ 423 • United Arab Emirates  
 
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  HS code  Product 
description  2016  2017  2018  2019  2020  2016 -20 
avg Top three major 
partners in 
2015 -20 (% of 
total)  
17 Sugars and sugar 
confectionery  763 1,037  500 302 611 643 Sudan (21.7%); 
Islamic Republic of 
Iran (10.1%); 
Oman (7.1%)  
21 Miscellaneous 
edible preparations  642 486 648 656 561 598 Islamic Republic of 
Iran (20%); 
Kingdom of Saudi 
Arabia (18.2%); 
Oman (9.2%)  
22 Beverages, spirits 
and vinegar  515 481 573 628 417 523 Oman (12.9%); 
Islamic Republic of 
Iran (12.8%); EU -
27 (6.8%)  
09 Coffee, tea, mate 
and spices  418 380 522 615 561 499 Islamic Republic of 
Iran (12.9%); 
Iraq (9.7%); 
Russian  Federation 
(8%) 
19 Preparations of 
cereals, flour, 
starch or milk; 
pastrycooks' 
products  306 278 441 550 518 419 Kingdom of Saudi 
Arabia (28.5%); 
Oman (11.2%); 
Iraq (8.4%)  
15 Animal or 
vegetable fats and 
oils and their 
cleavage products  305 275 375 468 539 392 China (22.4%); 
Kingdom of Saudi 
Arabia (13%); 
Oman (8.6%)  
20 Preparations of 
vegetables, fruit, 
nuts or other parts 
of plants  433 313 357 401 278 356 Iraq (16.9%); 
Oman (15.5%); 
Kingdom of Saudi 
Arabia (11.3%)  
18 Cocoa and cocoa 
preparations  316 253 438 450 301 352 Kingdom of Saudi 
Arabia (38.1%); 
Oman (13.4%); 
State of Kuwait 
(9.3%)  
07 Edible vegetables 
and certain roots 
and tubers  267 323 357 367 402 343 Islamic Republic of 
Iran (24.1%); 
Kingdom of Saudi 
Arabia (13.2%); 
Oman (12.9%)  
16 Preparations of 
meat, of fish or of 
crustaceans, 
molluscs or other 
aquatic 
invertebrates  159 218 347 424 356 301 Kingdom of Saudi 
Arabia (29.7%); 
Egypt (18.1%); 
State of Kuwait 
(13.3%)  
10 Cereals  501 337 344 167 105 291 Islamic Republic of 
Iran (62.8%); 
Oman (14.6%); 
Sri Lanka (3.5%)  
02 Meat and edible 
meat offal  57 71 245 653 209 247 Islamic Republic of 
Iran (49.2%); 
Kingdom of Saudi 
Arabia (12.3%); 
Oman (9.8%)  
23 Residues and 
waste from the 
food industries; 
prepared animal 
fodder  220 188 192 251 243 219 Viet Nam 
(25.9%); Oman 
(16.6%); Thailand 
(12.4%)  
Source:  WTO Secretariat calculations based on data from the Federal Competitiveness and Statistics Centre.  
4.10.   Food products are subject to special sanitary and phytosanitary requirements (Sect ion 3.3.3).  
Imports permits, quarantines, and trade restrictions apply in certain cases. Federal Law No.  10 of WT/TPR/S/ 423 • United Arab Emirates  
 
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  2015 prohibits the trade of rotten, harmful, adulterated, or deceptive food, and of feed that causes 
damage to human and animal health or that vi olates appliable technical regulations.8 
4.1.3   Policies  
4.1.3.1   Relevant authorities for regulation and support  
4.11.   At the federal level, the Ministry of Climate Change and Environment (MOCCAE)  is responsible 
for the development of UAE policies and the regulation of agricultural issues related to agriculture, 
animal husbandry, and fisheries. Its missions include increasing the contribution of these sectors to 
the GDP, ensuring food security9, and enhancing their overall quality.10 
4.12.   Emirate authorities are also involved in managing the sector, as demonstrated by the 
Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), which is the local body in charge of 
preparing programmes and activities in  the fields of agriculture, food safety, food security, and 
biosecurity in the Emirate of Abu Dhabi.11 The authorities indicate that individual Emirates and the 
Federal Government work in coordination, and that the authorities of all seven Emirates follow 
federal policies and regulations. Emirate authorities are thus responsible for ensuring that provisions 
of the federal laws on agriculture and food products are implemented.  
4.13.   In addition, the UAE collaborates with other Gulf Cooperation Council (GCC) countr ies to 
provide food security and optimize the utilization of resources. The UAE complies with the 2006 GCC 
Law on Fertilizers and Agricultural Soil Improvements, the 2007 GCC Pesticides Act, the 2009 GCC 
Law on Seeds, Seed Tubers and Seedlings, and the 201 1 GCC Law for Practicing Veterinary 
Medicine.12 The GCC Agricultural Cooperation Committee submits recommendations and tasks to its 
relevant specific committees (e.g.  Permanent Committee for Livestock, and Permanent Committee 
for Fisheries).13 In 2020, the  Agricultural Cooperation Committee recommended that the amended 
GCC Law on Agricultural Quarantine and the Law on preventive measures for endemic zoonoses be 
approved, and it approved the aquaculture regional manual.14 
4.14.   According to the authorities, the MOCCAE does not provide production subsidies to farmers; 
instead, it encourages farmers to use modern technology and adopt efficient approaches for water 
and environmental protection. As mentioned in Section 3.3.4.2, the M OCCAE monitors the prices of 
several food commodities15 to ensure price stability and consumer  welfare. To increase prices, 
traders of these commodities have to obtain prior authorization from the MOCCAE.  
4.15.   Emirate authorities can also provide support to far mers. For example, in 2020, the ADAFSA 
provided AED 1.28 billion in support to livestock breeders as part of its feed support programme; an 
additional AED 1.1 billion to the farmers' income improvement programme, which has offered 
monthly instalments to fa rmers since 201216; and AED 232 million as support to small -scale 
producers and broiler and layer farms.17 For farmers to benefit from the financial assistance 
programme, ADAFSA Decree No.  23 of 2020 requires them to apply the relevant regulations 
 
8 Federal Law No.  10 of 2015, Article  12. 
9 Food security is defined by the United Nations' Committee on World Food Security as occurring when 
"all people, at all times, have physical, social, and economic access to sufficient, safe, and nutriti ous food that 
meets their food preferences and dietary needs for an active and healthy life". Viewed at: 
https://www.fao.org/3/y4671e/y4671e06.htm . 
10 MOCCAE, Duties and Responsibilities . Viewed at: https://www.moccae.gov.ae/en/about -
ministry/mandate -of-the-ministry.aspx . 
11 ADAFSA, Policies and Legislations . Viewed at: 
https://www.adafsa.gov.ae/english/policyandlegislations/pages/default.aspx . 
12 Information provided by the authorities.  
13 Emirates News Agency  (2020) , "UAE Climate Change Minister Chairs 30th Meeting of GCC Agricultural 
Cooperation Committee", 22  November  2020.  
14 Saudi Gazette  (2020) , "Al Nuaimi Calls for Updating Agricultural Plans and Strategies in GCC", 
22 November  2020.  
15 Fish and marine products; meat and poultry; rice and other cereals; dairy, cheese, and eggs; fats and 
oils; vegetables; fruits; sugar and honey; coffee, tea and cocoa; and juices and drinks.  
16 ADAFSA, Income Improvement Program for Farmers Implemented Across the Emirate of Abu Dhabi , 
21 May 2012. Viewed at: 
https://www.adafsa.gov.ae/english/mediacenter/news/archived%20news/incomeimprovement.aspx . 
17 Information  provided by the authorities . WT/TPR/S/ 423 • United Arab Emirates  
 
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  includin g on biosecurity and food safety.18 Funding is not linked to production.19 The authorities 
indicate that support programmes were also available for farmers in the northern Emirates 
(i.e. Ajman, Fujairah, Ras Al Khaimah, Sharjah, Umm Al Quwain).  
4.1.3.2   WTO notific ations  
4.16.   The UAE notified that no export subsidies existed in accordance with Article  18.2 of the 
Agreement on Agriculture between 2016 and 2020 .  
4.17.   Total support to the agriculture sector increased from AED 180 million in 2016 (mainly through 
pest and disease  controls, and infrastructure support) to AED 242 million in 2019 (mainly through 
pest and disease controls, and extension and advisory services). In 2020, support was strongly 
reduced to AED 136 million. According to the UAE's notifications, all support m easures were listed 
in the Green Box for 2016, 2018, 2019, and 2020.20 No other support measure was notified. 
According to the authorities, emirate -level support measures were not included in the UAE 
notifications to the WTO, as the relevant information wa s not available at the time of notification.  
4.1.3.3   Access to the agriculture sector  
4.18.   At the time of the previous Review, non -GCC nationals could own only up to 49% of an 
agri-business. Following the 2020 amendments to the Commercial Companies Law, the list of 
activities opened to 100% foreign ownership in Abu Dhabi now includes the management and 
operation of farms and manors, as well as investment, institution, and management of agricultural 
enterprises. Dubai's list includes investment in agricultural enterprise s and management.21 
4.19.   Emirate authorities are in charge of issuing licences for agricultural activities. For regulated 
agricultural activities, such as import or export of agricultural products, fertilizers, and pesticides, 
licences must be obtained first at  the relevant local emirate authority, such as the Dubai Department 
of Economic Development, and then from the MOCCAE.22 
4.1.3.4   Policies and plans adopted since the last Review  
4.20.   Between 2016 and 2021, the UAE authorities launched several initiatives in agriculture with 
the aim of achieving greater agricultural production. Due to challenging weather conditions, indoor 
farming and greenhouse vegetable production are seen as a potent ial, yet very demanding, solution. 
Investments have been made, for example, in urban farming and hydroponics.23 Dubai also hosts 
the first indoor commercial vertical farming operation launched in the UAE. In Abu Dhabi, the Green 
Factory Emirates project will create the world's largest indoor farm, through a joint venture between 
Dutch and UAE firms.  
4.21.   The National Cl imate Change Plan 2017 -2050 highlights several key challenges for the 
country, such as limited arable land, intense heat, high salinity, water shortage, and heavy reliance 
on food imports.24 To overcome these risks related to food supply, the authorities d ecided to 
emphasize their agricultural policies on food security. The Ministry for Food and Water Security, 
created in 2017 and merged in 2021 with the MOCCAE, had as one of its main missions to raise the 
UAE's position in the Economist Intelligence Unit's  Global Food Security Index to 1st by 2051.25 An 
 
18 FAOLEX Database, United Arab Emirates . Viewed at: 
http://www.fao.org/faolex/results/details/en/c/LEX -FAOC199804 . 
19 Information provided by the authorities.  
20 WTO documents G/AG/N/ARE/12 -G/AG/N/ARE/13, 8 Augu st 2018; G/AG/N/ARE/16 -G/AG/N/ARE/17, 
7 April 2020; and G/AG/N/ARE/19, 10 January 2022.  
21 The relevant lists can be downloaded at: https://u.ae /en/information -and-services/business/full -
foreign -ownership -of-commercial -companies . 
22 Information provided by the authorities.  
23 Dennis, S.  (2020) , "Covid -19: The Re -shaping of Supply Chains and Why the UAE Is Ready for It", 
Arabian Business , 24 March  2020; Gulf Petrochemicals & Chemicals Association (2019), GCC Fertilizer Market 
Outlook: Challenges and Opportunities for GCC Fertilizer Producers,  Executive Summary , November, p. 11. 
Viewed at:  https://bit.ly/2RlowA0 ; and Gerretsen, I., "Farming in the Desert: Are Vertical Farms the Solution 
to Saving Water?", DW, 22 July 2020.  
24 Information provided by the author ities. 
25 The Index measures food affordability, availability, quality and safety, and natural resources and 
resilience. UAE Government Portal, National Food Security Strategy 2051 . Viewed at: https://u.ae/en/about -WT/TPR/S/ 423 • United Arab Emirates  
 
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  intermediate target was to among the top 10 by 2021. However, while the UAE was on a promising 
track, improving from 31st in 2018 to 21st in 2019, it dropped to the 42nd position in 2020 after the 
introducti on of the Natural Resources and Resilience category, in which the country scored relatively 
poorly. The Index, however, notes that food security, food safety, and agricultural import tariffs are 
among the country's strengths.  
4.22.   A year after the publication o f the National Climate Change Plan, the 2018 National Strategy 
for Food Security determined 42 short - and long -term initiatives to address the challenges of food 
and agriculture production and supply based on 5 main goals26: 
• Facilitate global agri -business  trade and diversify international food sources.  
• Enhance sustainable technology -enabled domestic food supply across the value chain.  
• Reduce food loss and waste.  
• Sustain food safety and improve nutritional intake.  
• Enhance capacity to respond to food securit y risks and crises.  
4.23.   The 42 initiatives integrate into the main objective of implementing resilient agricultural 
practices to increase productivity and production, while transforming the food systems to be more 
sustainable and to safeguard ecosystems. The N ational Strategy for Food Security uses different 
schemes to support the farming industry, such as providing access to technology, using a contract 
farming approach to ensure fair and just interaction between small and medium to large -scale 
entities, and p roviding access to affordable financing mechanisms as well as to farm land. 
Implementation of the Strategy was meant to increase domestic production of main food items by 
100,000 tonnes by 2021 and enhance yield by 30% for selected items of the UAE food ba sket. 
Advancements are monitored by the Emirates Food Council, established in 2019. This Council, whose 
membership includes several Ministries and authorities along with representatives from the public, 
private, and academic sectors, is tasked with promoti ng collaboration between UAE federal and 
emirate entities. It is chaired by the MOCCAE.27 
4.24.   In 2019, the UAE started to promote agricultural technology through the USD  272 million 
Ag-Tech Programme launched by the Abu Dhabi Investment Office.28 Four Ag -Tech private 
companies – AeroFarms (research and vertical farming), Madar Farms  (the world's first commercial -
scale indoor tomato farm using only LED lights), RNZ (research and development to quantify 
production output measured against environmental inputs), an d Responsive Drip Irrigation 
(innovative irrigation system) – benefited from funding through this programme.29 In addition, the 
Federal Government created the Ag -Tech Government Accelerators Programme, which focuses on 
adopting modern technologies in agric ulture to reduce costs, strengthening the sector, and fostering 
research. Ten initiatives were introduced by the Government in this context to promote the adoption 
of Ag -Tech, including a sustainable agriculture label, reduced agricultural licence fees, lo an 
guarantees, a food security data platform, and new standards for aquaculture.30 
4.25.   The impact of the COVID -19 pandemic on global supply chains and the fear of disrupted food 
trade further enhanced the importance of producing locally and ensuring reliable f oreign supply. In 
 
the-uae/strategies -initiatives -and-awards/federal -governments -strategies -and-plans/national -food-security -
strategy -2051. 
26 Information provi ded by the authorities.  
27 Information provided by the authorities.  
28 Consulate General for Switzerland and Switzerland Global Enterprise (2020), Food Security in the 
UAE: AgTech Opportunities . Viewed at: https://www.s -ge.com/sites/default/files/publication/free/s -ge-20204 -
c7-uae-food-security -agtech.pdf . 
29 Consulate General for Switzerland and Switzerland Global Enterprise (2020), Food Securi ty in the 
UAE: AgTech Opportunities . The authorities did not indicate how many companies had benefited from this 
programme and what were the requirements to be included.  
30 Ministry of Food and Water Security (2021),  The Future of Food: Towards Future Food Security 2051 ; 
UAE Food & Water Security, Ag -tech Accelerators Program. Viewed at: https://foodsecurity.gov.ae/en/multiple -
initiativeM ; and US -UAE Business Council, Sector Updates – UAE Agtech Sector , February 2021, p. 3. Viewed 
at: https://www.usuaebusiness.org/wp -content /uploads/2021/02/Technology -Series -AgTech -Report -Draft-
4.pdf. The authorities did not indicate the requirements for companies to apply to these initiatives.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  March 2020, the Agri -Tech Sector Development Team was set up to boost food security during and 
after the pandemic. The Team is divided into working groups composed of public - and private -sector 
stakeholders, and its purpose is to present innovative agricultural products, often using new 
technologies, to enhance local food production.31 The UAE also approved Federal Law No.  3 of 2020 
Regarding the Regulation of the Strategic Stock of Food Commodities, whose objective is to register 
food sup pliers and organize the distribution of food during crises and emergencies, and achieve food 
sustainability. The provisions of the Law apply to suppliers and registered merchants (the authorities 
did not indicate to what extent foreign suppliers are subjec t to the Law). Finally, the Dubai Food 
Security Dashboard launched in June 2020 should keep track of key food security variables, such as 
indicators of stock availability and local production, using artificial intelligence and data analytics.32 
Projects in  partnership with the Food and Agriculture Organization of the United Nations were also 
implemented in the context of the COVID -19 pandemic in May 2020 to achieve the Sustainable 
Development Goals (SDGs) of enhanced food security and nutrition, and improve d food control 
measures in the UAE.33 
4.26.   In June 2020, the UAE Cabinet approved the national system for sustainable agriculture. Its 
missions are to improve the efficiency of UAE farms and, in accordance with the authorities' broader 
food security goal, to st rengthen food self -sufficiency. Annual targets are to increase the production 
of agricultural crops by 5%, average farm income by 10%, and the agricultural workforce by 5%, 
and to reduce water use for irrigation by 15%. Under the national system, products of local origin 
will be promoted. The authorities did not provide further information on the implementation of the 
plan. 
4.27.   Finally, in 2021, the MOCCAE  reduced or waived fees for a number of agricultural activities in 
a bid to increase production and encourage young people becoming agricultural entrepreneurs. Fees 
for the release of agricultural products and animal consignments, import permits for animal  feed and 
fodder, and the use of the organic logo, inter alia , figured on the list.34 
4.1.4   Fisheries  
4.28.   The MOCCAE  is responsible for developing policies and legislation on fisheries, while each 
Emirate retains the authority to issue local regulations that can only be stricter than federal 
regulations and cannot contradict them.35 The first objective of the UAE policy  on fisheries is to 
ensure sustainability of the resources (through fishing seasons, reserve areas, and gear restrictions) 
and promote aquaculture.36 The main legislation on fisheries is Federal Law No.  23 of 1999 regarding 
the Exploitation, Protection and  Development of Living Aquatic Resources in the UAE and its bylaw, 
as amended by Federal Law No.  7 of 2016 and Ministerial Decree No.  21 of 2018. The Law lays down 
the legal basis for catch and prohibits certain fishing practices, such as drift nets, fishi ng with 
explosives, and catching sea animals whose capture is banned. Specific fishing practices (e.g. fishing 
and trade of sharks, catch of pelagic fish, and use of fishing nets) are regulated or prohibited by the 
relevant Ministerial Decrees.  
4.29.   The authori ties indicate that the fisheries sector employed more than 6,000 people in 2019, 
and virtually all fisheries follow artisanal methods. The capture is dominated by small boats. Total 
catch was of 72,117 tonnes in 2019, down from 73,203 tonnes in 2013 and ov er 100,000 tonnes in 
the early 2000s. Sharjah and Ras Al Khaimah are the leading Emirates in terms of fish catch, with 
each catching around 17,000 tonnes in 2019.37 
4.30.   While foreigners can be employed as fishers, only UAE nationals can obtain a professional 
fishing licence. A fishing boat cannot sail without its UAE owner or a UAE citizen acting on their 
 
31 Ministry of Food and Water Security (2021),  The Future of Food: Towards Future Food Security 2051 , 
p. 103. Zawya, "AgriTech Sector Development Team Discusses Post -Covid -19 Plans to Advance Agricultural 
Technology in the UAE", 1  June 2020. Viewed at: https://bit.ly/3zgzEP9 . 
32 UAE Government Portal, Food Security . Viewed at: https://u.ae/en/information -and-
services/environment -and-energy/food -security#ag -tech-accelerators . 
33 Ministry of Food and Water Security (2021), The Future of Food: Towards Future Food Security 2051 , 
p. 109. 
34 Emirates News Agency  (2021) , "Ministry of Climate Change and Environment to Reduce Fees for 44 
Services, Waive Fees for Another Six from May  1", 28  April 2021.  
35 Information provided by the authorities.  
36 Information provided by the authorities.  
37 Federal Competitiveness and Statistics Centre, based on data from the MOCCAE.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  behalf as vice -captain.38 Fishing licences are delivered by the emirate authorities, while registration 
of fishing boats goes through the MOCCAE. Recreational  fishing licences are also available for 
residents and tourists.39 
4.1.4.1   Trade  
4.31.   According to the 2019 National Framework Statement for Sustainable Fisheries (2019 -2030), 
the UAE fishing sector represents 0.12% of the GDP. The UAE imported 72% of its seafood, with  the 
rest being supplied by local fisheries (27%) and aquaculture (1%).40  
4.32.   The UAE's imports and exports of fish and crustaceans, molluscs, and other aquatic 
invertebrates (HS Code 03) both increased from 2016 to 2019, before dropping sharply in 2020 
(Table 4.4). The simple average of applied tariffs on fish and fishery products (3.5%) is lower than 
the UAE total simple tariff average of 5 % (Section 3.1.3).  
Table 4.4 Trade of fish products and major partners, 2016 -20 
(USD million)  
HS 
code  Product 
description  2016  2017  2018  2019  2020  2016 -20 
avg Top three major 
partners in 2015 -20 
(% of total)  
Imports  
03 Fish and 
crustaceans, 
molluscs and 
other aquatic 
invertebrates  566 618 649 648 453 587 India (29.5%); Norway 
(10.3%); Viet  Nam 
(7.8%)  
16 Preparations of 
meat, of fish or 
of crustaceans, 
molluscs or other 
aquatic 
invertebrates  248 251 224 222 180 225 Thailand (31.8%); 
EU-27 (12.2%); 
United  States (9.9%)  
Exports and re -exports  
03 Fish and 
crustaceans, 
molluscs and 
other aquatic 
invertebrates  126 76 213 190 107 142 Kingdom of Saudi 
Arabia (35.1%); 
Viet Nam (11.6%); 
Egypt (10.3%)  
16 Preparations of 
meat, of fish or 
of crustaceans, 
molluscs or other 
aquatic 
invertebrates  159 218 347 424 356 301 Kingdom of Saudi 
Arabia (29.7%); Egypt 
(18.1%); State of 
Kuwait (13.3%)  
Domestic exports  
03 Fish and 
crustaceans, 
molluscs and 
other aquatic 
invertebrates  99 55 168 128 71 104 Kingdom of Saudi 
Arabia (39.8%); Egypt 
(13.3%); State of 
Kuwait (9.9%)  
16 Preparations of 
meat, of fish or 
of crustaceans, 
molluscs or other 
aquatic 
invertebrates  105 169 278 363 318 247 Kingdom of Saudi 
Arabia (35.6%); Egypt 
(27.2%); State of 
Kuwait (15.3%)  
Source:  WTO Secretariat calculations based on trade statistics provided by the authorities.  
4.1.4.2   Recent policies  
4.33.   The National Framework Statement for Sustainable Fisheries (2019 -2030) provides guidance 
on achieving sustainable fisheries within the next decade through pursuing management best 
 
38 Information provided by the authorities.  
39 UAE Government Po rtal, Regulating Fishing Practices . Viewed at: https://u.ae/en/information -and-
services/environment -and-energy/regulating -fishing -practices . 
40 Most recent data (2019). Environment Agency Abu Dhabi  and MOCCAE, The UAE National Framework 
Statement for Sustainable Fisheries (2019 -2030) , p. 9. Viewed at: https://bit.ly/2WsiFvu . WT/TPR/S/ 423 • United Arab Emirates  
 
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  practices at both the national and emirate levels. A GCC regional survey conducted in 2011 found 
that demersal stocks had declined by around 90% from late -1970s levels. A later survey from 
2016-17 demonstrat ed that in more recent years fish stocks remained mostly stable if not 
improving.41 The National Framework aims at rebuilding the fish stock through three main strategic 
objectives: reduce pressure on fisheries (seasonal closures, caps, etc.); develop aqua culture 
research and programmes to support fish stock improvement; and enhance fish stocks through the 
rehabilitation of habitats and the installation of artificial reefs.42 Both the MOCCAE  and the local 
authorities are in charge of the programme's implementation.  
4.34.   Despite the small share of aquaculture in total supply, the Minister for Food and Water 
Security (now merged with the MOCCAE) wants to see this sector grow substantially in the nex t 
decades. To this effect, the UAE Aquaculture Pulse 2020 Guide details the different hatcheries, main 
UAE fish farms, and fish species deemed as good candidates for aquaculture in the UAE.43 The 
development of the aquaculture sector is among the two focus  areas listed by the UAE Future of 
Food 2021 Report, which emphasizes standardizing the requirements of aquaculture activities in the 
UAE, developing work areas dedicated to aquaculture and defining environmental requirements, and 
establishing a system of strategic interventions to develop the infrastructure of fish farming and key 
facilities that provide fish feed.44 As of mid -2020, the UAE had invested USD  54 million in the 
development of fish farms and hatcheries.45 
4.35.   The UAE is a member of the International Maritime Organization for the 2020 -21 biennium as 
a Category B member (representing States that have the largest interest in international seaborne 
trade).46 The country is also a member of the Regional Commission for Fisheries, whose goals a re 
to promote: (i)  the development, conservation, rational management, and best utilization of living 
marine resources; and (ii)  the sustainable development of aquaculture.47 The Government indicates 
that it aims to reduce illegal, unreported, and unregula ted fishing and destructive fishing practices. 
Laws such as the 1999 Law on the Exploitation and Protection of Living Aquatic Resources in the 
UAE (as amended) and various prohibitions of specific catches contribute to this goal. However, the 
UAE has not j oined the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, 
Unreported and Unregulated Fishing, and it is a signatory but not a party to the United Nations 
Convention on the Law of the Sea.  It has not signed or ratified the UN Fish Stock Agreement or the 
FAO Compliance Agreement.48 
4.2  Mining and Energy  
4.2.1   General  
4.36.   IEA statistics49 indicate that between 2015 and 2019 energy production in the UAE remained 
constant50, total primary energy supply declined51, electricity final consumption increa sed52, and 
total CO 2 emissions declined slightly.53 Natural gas accounts for more than 60% of the energy supply, 
followed by oil with around 25%.54 Primary energy consumption is dominated by natural gas (60%) 
and oil (nearly 40%).55 
 
41 Information provided by the authorities.  
42 Environment Agency Abu Dhabi and MOCCAE, The UAE National Framework Statement for 
Sustainable Fisheries (2019 -2030) , p. 9. Viewed at: https://bit.ly/2WsiFvu . 
43 UAE Government, UAE Aquaculture Pulse 2020.  
44 Ministry of Food and Water Security (2021), The Futur e of Food: Towards Future Food Security 2051 , 
p. 53. 
45 Consulate General of Switzerland and Switzerland Global Enterprise (2020), Food Security in the UAE: 
AgTech Opportunities . 
46 IMO, Structure of IMO . Viewed at: https://www.imo.org/en/About/Pages/Structure.aspx#2 . 
47 FAO, FAO Regional Office for Near East and North Africa . Viewed at: 
http://www.fao.org/neareast/recofi/en/ . 
48 Information provided by the authorities.  
49 IEA, Key Energy Statistics – United Arab Emirates . Viewed at: https://www.iea.org/countries/united -
arab-emirates . 
50 Energy production was 9,913.5 TJ in 2015 and 9,945.3 TJ in 2019.  
51 Primary energy supply declined from 80.3 Mtoe in 2015 to 52.6 Mtoe in 2019.  
52 Electricity final consumption in 2019 was 131.4 Twh com pared with 119.5 Twh in 2015.  
53 Emissions decreased from 186.2 Mt of CO 2 in 2015 to 178 Mt of CO 2 in 2019.  
54 IEA, Key Energy Statistics – United Arab Emirates . 
55 Based on data for 2020. BP (2021),  Statistical Review of World Energy 2021 , p. 11.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.37.   The UAE Energy Strategy  2050, launched in 2017, and which constitutes the first unified UAE 
energy strategy56, aims to diversify the energy mix while mitigating climate change by reducing 
greenhouse gas (GHG) emissions. The Strategy envisages that by 2050 clean energy sources will 
contribute 50% of the total installed power capacity mix (44% from renewable energy and 6% from 
nuclear energy), while natural gas and clean coal will account for , respectively , 38% and 12% of the 
energy mix. The Strategy also aims to reduce G HG emissions from power generation by 70% and to 
increase energy consumption efficiency by 40%. The Government aims to invest AED 600 billion by 
2050 to meet the growing energy demand and ensure stable economic growth.57 In March 2021, 
the Government launc hed the National Integrated Energy Model, which sets out a roadmap for the 
development of the country's energy sector over the next 50 years.58 In April 2021, the UAE National 
Demand Side Management Program 2050 was approved. This programme sets the detail ed roadmap 
to achieve the demand reduction target of 40% by 2050, setting initiatives for the main 
energy -consuming sectors in the UAE, namely industry, construction,  and transport.  
4.38.   Energy diversification and conservation strategies , such as the Dubai Int egrated Energy 
Strategy 2030 and the Dubai Clean Energy Strategy 2050 , have also been adopted by individual 
Emirates.59 
4.39.   In September 2016, the UAE submitted a Nationally Determined Contribution (NDC) within 
the framework of the Paris Agreement60, which was  revised in December 2020 to reflect a higher 
level of ambition. According to the updated NDC, the UAE intends to reduce GHG emissions for the 
year 2030 by 23.5% relative to the business -as-usual scenario.61 In October 2021, the UAE declared 
its intent to achieve a target of zero GHG emissions by 205062, and, in November 2021, it announced 
the Hydrogen Leadership Roadmap, a comprehensive national blueprint to support domestic 
low-carbon industries , contribute to the country's net -zero ambition , and establis h the country as a 
competitive exporter of hydrogen.  The authorities note that the UAE is well on its way to meet its 
ambition to be a global leader in low -carbon hydrogen with more than seven projects already under  
way that will target 25% market share in  the key export markets, including Japan, the Republic of 
Korea, Germany, and India , initially along with additional high -potential markets in Europe and East 
Asia. The UAE will host the 28th session of the Conference of the Parties (COP28) to the UNFCC in 
November 2023.  
4.40.   Several changes made to the organization of the Federal Government during the review period 
pertain to the energy sector. In 2016, the Ministry of Environment and Water was tr ansformed into 
the Ministry of Climate Change and Environment  (MOCCAE)63 and a UAE Council on Climate Change 
and Environment was formed as an inter -ministerial and inter -Emirati governance body.64 In 2020, 
the Ministry of Energy and Industry and the Ministry of Infrastructure were merged to create a new 
Ministry of Energy and Infrastructure. The new Ministry's strategy includes, inter alia,  regulating and 
 
56 Econom ist Intelligence Unit (2021), "United Arab Emirates: Energy", 27  July 2021. Viewed at: 
http://country.eiu.com/ar ticleindustry.aspx?articleid=131302396&Country=United%20Arab%20Emirates&topic
=Industry&subtopic=Energy . 
57 UAE Energy  Strategy 2050. Viewed at: https://u.ae/en/about -the-uae/strategies -initiatives -and-
awards/federal -governments -strategies -and-plans/uae -energy -strategy -2050. The UAE also adopted a National 
Climate Change Plan 2017 -2050. Viewed at: https://u.ae/en/about -the-uae/strategies -initiatives -and-
awards/federal -governments -strategies -and-plans/national -climate -change -plan-of-the-uae. 
58 Emirates News Agency  (2021), "Ministry of Energy and Infrastructure Launches National Integrated 
Energy Model", 2  March  2021. Viewed at: https://wam.ae/en/details/13 95302914826 . 
59 Dubai's aim for 2030 is to generate 25% of the energy mix from solar power, 7% from nuclear power, 
7% from clean coal, and 61% from natural gas. It aims to provide 75% of the total power output from clean 
energy sources by 2050. Dubai Clean Energy Strategy. Viewed at: https://u.ae/en/about -the-uae/strategies -
initiatives -and-awards/local -governments -strategies -and-plans/dubai -clean-energy -strategy . 
60 UNFCC C (2015), Intended Nationally Determined Contribution of the United Arab Emirates . Viewed 
at: 
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/United%20Arab%20Emirates%20First/UAE%20
INDC%20 -%2022%20October.pdf . 
61 UNFCC C (2020), Second Nationally Determined Contribution of the United Arab Emirates . Viewed at: 
https://www4.unfccc.int/sites/ndcstaging/Published Documents/United%20Arab%20Emirates%20Second/UAE
%20Second%20NDC%20 -%20UNFCCC%20Submission%20 -%20English%20 -%20FINAL.pdf . 
62 Economist Intelligence Unit (2021), "UAE Sets New Net Zero Target", 13  October  2021. Viewed at: 
http://country.eiu.com/ArticleIndustry.aspx?articleid=1261500109&Country=United+Arab+Emirates&topic=In
dustry&subtopic=Energy . 
63 MOCCAE. Viewed at: https://www.moccae.gov.ae/en/home.aspx . 
64 UAE Cabinet, "UAE Forms Council for Climate Change and Environment". Viewed at: 
https://www.uaecabinet.ae/en/details/news/uae -forms -council -for-climate -change -and-environment . WT/TPR/S/ 423 • United Arab Emirates  
 
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  developing the infrastructure, transport, e nergy, water, oil and gas , and mining sectors to ensure 
their security and sustainability".65  
4.2.2   Oil and gas  
4.2.2.1   Overview  
4.41.   The oil and gas sector accounts for around 30% of the UAE's GDP66, 41% of public revenues 
and 26% of merchandise exports, excluding re -exports (Section 1). However, the economic 
importance of hydrocarbons differs significantly between the individual emirates (Section  1).  
4.42.   The UAE is a member of the Organization of Petroleum Exporting Countries (OPEC) and among 
the world's 10 largest crude oil  producers, with a share of around 4% of global crude oil production.67 
The level of proven crude oil reserves increased from 9 7.8 billion barrels in 201568 to 105.0 billion 
barrels in 2019 and 107.0 billion barrels in 2020.69 More than 90% of the UAE crud e oil reserves are 
located in Abu Dhabi, followed by Dubai (4%), Sharjah (1.5%), and Ras Al  Khaimah (0.5%).70 
Abu Dhabi's Supreme Petroleum Council announced the discovery of major stocks of new 
conventional and unconventional crude oil in November 2019 an d November 2020.71 
4.43.   The volume of crude oil production in 2015 -19 fluctuated around 3  million barrels per day  
(b/d)72, and declined  to 2.8  million b/d in 2020.73 Oil consumption grew from 778,000 b/d in 2015 
to 899,000 b/d in 2019 and declined to 828,000 b/d in 2020.74  
4.44.   Most of the UAE's production of crude oil (and gas) is accounted for by the state -owned 
Abu Dhabi National Oil Company (ADNOC), particularly ADNOC's largest operating companies, 
ADNOC Onshore and ADNOC Offshore.75 Other companies in  the ADNOC Group involved in crude oil 
exploration and production are ADNOC Drilling, Al Yasat Petroleum, and Al Dhafra Petroleum.76 In 
the other Emirates, oil production is carried out by the Dubai Petroleum Establishment, the Sharjah 
National Oil Corpora tion, and RAK Gas, which are all state -owned.  
4.45.   UAE exports of crude oil declined slightly from 2.5  million b/d in 2015 to 2.4  million b/d in 
201977 and 2020. Most crude oil exports are destined for OECD countries in  the Asia  Pacific region, 
mainly Japan, f ollowed by China and India. The volume of crude oil exported to Europe and the 
United  States is very small.78  
4.46.   The output of refined oil products fluctuated around 1  million b/d during 2015 -19 and declined 
to 925,000 b/d in 2020.79 Exports of refined produ cts increased substantially, from 414,800 b/d in 
 
65 Ministry of Energy and Infrastructure, Our Strategy . Viewed at: https://www.moei.gov.ae/en/about -
ministry/our -strategy.aspx . 
66 As noted in Section 1, the share of mining and quarrying including crude oil and natural gas declined 
from 30.6% in 2016 to 29.8% in 2019 and 29.1% in 2020. Based on 2019 data, OPEC est imates that around 
30% of the UAE's GDP "is directly based on output of the oil and gas sector". OPEC, UAE Facts and Figures . 
Viewed at: https://www.opec.org/opec_web/en/about_us/170.htm . 
67 BP (2021), Statistical Review of World Energy 2021 , p. 19.   
68 UAE Stat, Crude Oil Reserves, Production and Exports .  
69 OPEC (2021), Annual Statistical Bulletin 2021 , World Proven Crude Oil Reserves by Country.  
70 Ministry of Energy and Industry, UAE State o f Energy Report 2019 , p. 33.  
71 The Arab Weekly  (2019), "UAE Announces Major New Oil, Gas Discoveries", 5  November  2019. 
Viewed at: https://thearabweekly.com/uae -announces -major -new-oil-gas-discoveries ; and Gulf Business 
(2020), "Abu Dhabi Confirms Massive Oil Discovery, Set to Add Dhs 160bn to the UAE's Economy", 
23 November  2020. Viewed at: https://gulfbusiness.com/abu -dhabi -confirms -massive -oil-discovery -governing -
body-approves -adnocs -capex -worth -122bn/ .  
72 UAE St at, Crude Oil Reserves, Production and Exports .  
73 OPEC (2021), Annual Statistical Bulletin 2021 , Daily and Cumulative Crude Oil Production in OPEC 
Members.  
74 OPEC (2021), Annual Statistical Bulletin 2021 , World Oil Demand by Country.  
75 Ministry of Energ y and Industry, UAE State of Energy Report 2019 , p. 33.  
76 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 34. The ADNOC Group also 
includes companies involved in process and refining, and marketing and distribution.  
77 UAE Stat, Crude Oil Reserves, Production and Exports . 
78 OPEC (2021), Annual Statistical Bulletin 2021 , OPEC Members' Crude Oil Exports by Destination.  
79 OPEC (2021), Annual Statistical Bulletin 2021 , Output of Petroleum Products in OPEC Members.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  2015 to 916,000 b/d in 2018, but declined to 881,800 b/d in 2019 and 839,600 b/d in 2020.80 In 
2019, ADNOC Refining accounted for more than 80% of the UAE's total refining capacity of 
1.12 million b/d.81 Demand for refined oil products declined in recent years, especially in 2020 due 
to the impact of the COVID -19 pandemic.82 
4.47.   The UAE's oil policy changed significantly during the review period, especially since 2016, in 
response to certain fundamental shifts in international energy markets, including the prospect of 
peak oil demand, the growth of demand for petrochemicals, a shift in energy demand from the OECD 
area to Asia, and an expected increase in the use of natural gas.83 Faced with th ese challenges, the 
UAE adopted "a strategy of increasing crude oil production capacity and maximizing the life of its 
reservoirs, especially by deploying enhanced oil recovery (EOR) techniques. The country has also 
built up its domestic transformation cap acity by upgrading existing refining facilities and adding a 
world class petroleum plant capacity".84 As reflected in ADNOC's 2030 Integrated Strategy, adopted 
in 201685, this has included the adoption of ambitious growth targets for ADNOC's upstream, 
midstream , and downstream operations ; high levels of investment ; and the partial privatization of 
ADNOC's assets in distribution, refining, drilling , and pipelines.86 In 2018, ADNOC announced plans 
to increase crude oil production capacity to 4  million b/d by the end of 2020 and 5  million b/d by 
2030.87 ADNOC's downstream investment programme is focused on the Ruwais Industrial Complex, 
which aims to transform into the world's largest fully integrated refining and petrochemicals 
complex. It  plans to increase it s refining capacity by 65% to 1.5  million b/d in 2025 and is also 
investing in refining capacity abroad.88 
4.48.   The new oil policy adopted in 2016 has entailed more diversity in international partnerships, 
resulting in a larger presence of Asian companies in Ab u Dhabi's oil sector. Following the expiry of 
the original onshore concession in 2014, and of the original offshore concession in 2018,  ADNOC 
Onshore and ADNOC Offshore were each awarded 60% in the new onshore and offshore concessions, 
with the remaining 4 0% of interests awarded to several international companies.89 The foreign 
companies with interests in the onshore concession are Total (France) , 10%; BP (United Kingdom) , 
10%; CNPC (China) , 8%; INPEX/JODCO (Japan) , 5%; CEFC (China) , 4%; and GS Energy (Repu blic 
of Korea) , 3%.90 The foreign companies with interests in the offshore concession are INPEX (Japan) , 
10%; ONGC Videsh, IOC and Bharat PetroResources (India) , 10%; ENI (Italy) , 5%; and Total 
(France) , 5%.91 
4.49.   The UAE's proven natural gas reserves increase d from 6.1 trillion cubic metres in 2015 -19 to 
7.3 trillion cubic metres in 2020.92 This increase reflects two recent discoveries of major gas 
reserves, including the Ghasha Field.93 The production of natural gas increased from 92.9 billion 
 
80 OPEC (2021), Annual St atistical Bulletin 2021 , World Exports of Petroleum Products by Country.  
81 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 36.  
82 Information provided by the authorities.  
83 ADNOC, ADNOC 2030 Integrated Strategy .  
84 Ministry of Energy  and Industry, UAE State of Energy Report 2019 , p. 33.  
85 ADNOC (2016), "Supreme Petroleum Council Approves ADNOC's 2030 Strategy and Five -Year 
Business Plan Focused on Growth and Maximising Value", 2  November 2016. Viewed at: 
https://www.adnoc.ae/en/news -and-media/press -releases/2016/spc -approves -adnoc -strategy . The 2030 
Integrated Strategy aims to achieve a more profitable upstream, a more sustainable and  economic gas supply, 
a more valuable downstream, and more proactive and adaptive marketing.  
86 Cahill, B. (2021), "Everything at Once: Transformation of Abu Dhabi's Oil Policy", The Arab Gulf 
States Institute in Washington. Viewed at: https://agsiw.org/everything -at-once-transformation -of-abu-
dhabis -oil-policy/ . 
87 Reuters  (2018), "UAE's ADNOC to Boost Oil Output Capacity to 4 Million bpd by 2020", 
4 November  2018. Viewed at: https://www.reuters.com/article/emirates -abudhabi -oil-energ y-idINKCN1N90E5 . 
It appears that ADNOC's long -term expansion objectives have not been affected by the production cuts 
implemented in 2020 by the OPEC+ countries. Economist Intelligence Unit (2020), "Abu Dhabi National Oil 
Company Maintains Long -Term Goals" , 13 August  2020. Viewed at: 
http://country.eiu.com/article.aspx?articleid=909973074 . 
88 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 36.  
89 Comyn, J. and Tiller , P. (2021), "The Oil and Gas Law Review: United Arab Emirates – Abu Dhabi", 
The Law Reviews . Viewed at: https://thelawreviews.co.uk/title/the -oil-and-gas-law-review/united -arab-
emirates -abu-dhabi .  
90 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 35.  
91 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 35.  
92 OPEC (2021), Annual Statistical Bulletin 2021 , World Proven Natural Gas Reserves by Country.  
93 The Ghasha mega -project has been characterized as the world's largest offshore sour gas 
development. Viewed at: https:// www.adnoc.ae/en/our -projects/hail -ghasha/ghasha -mega -project .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  cubic metres in  2015 to 109.9 billion cubic metres in 2019, while marketed natural gas production 
decreased from 60.8 cubic metres in 2015 to 55.1 billion cubic metres. Because of the high sulphur 
content of the UAE's natural gas, much of the gas production is reinjected  into oilfields to enhance 
oil production, processed into petroleum gases, or converted into liquefied natural gas and exported 
to Japan under a long -term contract.94 The main companies involved in production and processing 
of gas are ADNOC Sour Gas, ADNOC  Gas Processing , and ADNOC LNG in Abu Dhabi ; the Emirates 
National Oil Company and Dubai Natural Gas Company Limited in Dubai ; the Sharjah National Oil 
Corporation in Sharjah ; and RAK Gas in Ras Al Khaimah.95  
4.50.   Domestic gas consumption exceeds domestic production96, and since 2008 the UAE has been 
a net importer of gas. In 2020, the UAE imported 22.6 billion cubic metres of natural gas, compared 
with 27.1 billion cubic metres in 2015.97 Exports and re -exports of natural gas declined from 
13.2 billion cubic metres in 2015 to 9.4 billion cubic metres in 2019 and 8.77 billion cubic metres in 
2020.98  
4.51.   As with crude oil, expansion of production capacity is a major objective of the UAE's recent 
gas policy. While in the case of oil this has been driven by financial considerations, in the case of 
gas considerations of energy security prevail. An "integrated gas strategy" adopted in 2018 aims to 
achieve self -sufficiency by 2025 and to sustain LNG exports until 2040.99 As stated in the UAE State 
of Energy  Report 2019, "the country is pursuing a strategy to develop indigenous gas, including sour 
and ultra -sour reserves that are high in sulphuric content and otherwise not economically viable to 
develop. This will be used to help meet the growing domestic deman d and to reduce reliance on 
imported gas".100 Recent discoveries of major new natural gas reserves are expected to enable the 
UAE to achieve its objective of energy self -sufficiency by reducing its imports of natural gas.  
4.2.2.2   Regulation  
4.52.   Article  23 of the Federa l Constitution provides that "[t]he natural resources and wealth in 
each Emirate shall be considered to be the public property of that Emirate. Society shall be 
responsible for the protection and proper exploitation of such natural resources and wealth for  the 
benefit of the national economy". Thus the oil and gas sector is mainly regulated at the Emirate  
level.  
4.53.   In Abu Dhabi, the Supreme Petroleum Council (SPC), established in 1988, was the entity 
responsible for supervision of the oil and gas sector durin g most of the period under review. In 
December 2020, the functions of the SPC were merged with those of the newly created Supreme 
Council for Financial and Economic Affairs.101 In relation to the oil and gas sector, the relevant 
functions of the Supreme Cou ncil include: (i)  Developing  and approv ing public policies and strategies 
for the regulation of Abu Dhabi's petroleum and natural resources affairs; (ii)  review ing and 
approv ing the annual plans of ADNOC; and (iii)  setting the fiscal framework for the oil and gas 
industry and for overseeing royalty and tax assessment and collection.102 Similar institutions for the 
regulation of the hydrocarbons sector exist in other Emirates.103  
4.54.   There were no major changes during the review period to the legislative framework for the 
oil and gas sector. The main legislation governing petroleum  exploration and production  operations  
 
94 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 37.  
95 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 37.  
96 According to OPEC statistics, domestic demand for natural gas declined during the review period, 
from 72.7  million cubic metres in 2015 to 68.2  million cubic metres in 2019, and increased to 70.7  million 
cubic metres in 2020. OPEC (2021), Annual Statistical Bulletin 2021 , World Natural Gas Dema nd by Country.  
97 OPEC (2021), Annual Statistical Bulletin 2021 , World Natural Gas Imports by Country.  
98 UAE Stat, Natural Gas Reserves, Production, Imports, Exports and Re -Exports .  
99 Hydrocarbon Engineering (2018), "ADNOC Integrated Gas Strategy Approve d by the Abu Dhabi 
Supreme Petroleum Council", 5  November  2018. Viewed at: https://www.hydrocarbon engineering.com/gas -
processing/05112018/adnoc -integrated -gas-strategy -approved -by-abu-dhabi -supreme -petroleum -council/ . 
100 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 33.  
101 Law No.  24 of 2020 Concerning the Supreme Council for Financial and Economic Affairs.  
102 Comyn, J. and Tiller, P. (2021), "The Oil and Gas Law Review: United Arab Emirates – Abu Dhabi", 
The Law Reviews . The Supreme Council is chaired by the ruler of Abi D habi, and its other members include 
members of the ruling family, senior Abu Dhabi government officials, the chief executive office of ADNOC, and 
the chief executive officer of Mubadala Investment Company.  
103 Dubai Supreme Energy Council, Sharjah Petroleum  Council, and Ras Al Khaimah Petroleum 
Authority.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  in Abu Dhabi is Law No. 8 of 1978 Regarding the Conservation of Pet roleum Resources, which covers 
all aspects of upstream petroleum operations . The Law contains requirements regarding the conduct 
of petroleum operations by an operator, which include conformity with the most efficient scientific 
techniques and compliance w ith international safety standards,  identifies activities subject to prior 
consent, and sets forth various reporting obligations .104 Rights to produce oil and natural gas are 
granted through concession agreements. In Abu Dhabi and the UAE more generally such concessions 
are typically granted to state -owned or controlled companies, and foreign ownership is typically 
limited to minority i nterests .105 By virtue of the Abu Dhabi Gas Ownership Law, ownership of gas 
located in Abu Dhabi is vested in the Emirate of Abu Dhabi, while ADNOC enjoys the right to exploit 
and use such gas, alone or in partnership with others, on the condition that it m aintains a share of 
at least 51% .106 Pursuant to the Abu Dhabi Income Tax Decree of 1965, as amended, the 
Government of Abu Dhabi can subject chargeable persons to income tax on chargeable activities, 
including revenue from oil operations in the Emirate of Abu Dhabi. The Government of Abu Dhabi 
details the applicable rates of income tax and royalty on oil due in fiscal letters issued to the relevant 
chargeable person.107 
4.55.   Under the FDI Law enacted in 2018, oil and gas exploration and production appeared on a 
negative list of sectors in which foreign ownership was restricted (Section 2 .4). Since the FDI Law 
was revoked in September 2020 by amendments to the Commercial Companies Law, it appears that 
this negative list is no longer in force. The oil and gas sector  is not among the sectors listed in the 
Cabinet Decision No.  55/2021 on the Determination of the List of Strategic Impact Activities 
(Section  2.4).108 Based on Federal Decree No.  26 of 2020 (Section 2 .4), Abu Dhabi adopted a 
resolution specifying 1,105 regi stered commercial and industrial activities in which 100% foreign 
ownership is permitted, including several activities in the oil and gas sector.109  
4.56.   In June 2017, a federal law was passed regarding trading in petroleum products.110 Its aim is 
to organize th e trade of petroleum products, determine the conditions and procedures of trade of 
petroleum products, and combat practices intended to harm the national economy, the security , and 
the environmental safety related to the present law. The Law was designed t o address the illegal 
trading of petroleum products that do not meet UAE standard specifications and to reduce smuggling 
of petroleum products from neighbouring countries. The provisions of this law and the decisions 
issued thereunder, apply to all areas i n the country, including the free zones, private development 
zones , and investment zones. The Law provides that natural or legal persons may trade petroleum 
products in the territory of the UAE only if licensed to do based on a Trading Authori zation to be 
issued by the Competent Authority111, which shall be valid for one year and renewable for similar 
periods.112 To trade petroleum products in the territory of the UAE without a licence issued by the 
Competent Authority is considered illicit trading.113 The trading activities for which a Trading 
Authori zation is required include importing petroleum products from outside the UAE, and 
distributing, transporting, selling and purchasing, manufacturing, marketing, and storing of 
petroleum products as well as any other activity determined by the Competent Authority.114 The Law 
provides that each Emirate is free to specify the petroleum products that a licensee may trade. 
It requires the establishment in each Emirate of a Committee for the Organization of Trading  
Petroleum Products, the mandate of which is to review, and make appropriate recommendations on, 
 
104 Comyn, J. and Tiller, P. (2021), "The Oil and Gas Law Review: United Arab Emirates – Abu Dhabi", 
The Law Reviews .  
105 Garcia, M.M. and Hawes, S. (2021), "Oil & Gas Regulation 2021 – United Arab Emirates",  ICLG. 
Viewed at: https://iclg.com/practice -areas/oil -and-gas-laws-and-regulations/united -arab-emirates .  
106 Comyn, J. and Tiller, P. (2021), "The Oil and Gas Law Review: United Arab Emirates – Abu Dhabi", 
The Law Reviews . 
107 Garcia, M.M. and Hawes, S. (2021), "Oil & Gas Regulation 2021 – United Arab Emirates", ICLG.  
108 The authorities observe in this regard that the oil and gas sector was not included in the  List of 
Strategic Impact Activities because it was considered a prerogative of the local authorities and subject to 
requirements and conditions laid down by the local authorities.  
109 Abu Dhabi Department of Economic Development, Foreign Ownership Activitie s. Viewed at: 
https://www.adbc.gov.ae/CitizenAccess/Report/ShowReport.aspx?module=Licenses&reportID=2129&reportTyp
e=LINK_ REPORT_LIST . 
110 Federal Law No.  14 of 2017 on Trading in Petroleum Products.  
111 The Competent Authority is defined in Article  1 of the Law as the local authority that has the 
competence to issue the Trading Authorization.  
112 Federal Law No.  14 of 2017, Arti cles 4, 7, and 10.  
113 Federal Law No.  14 of 2017, Article  12.  
114 Federal Law No.  14 of 2017, Article  10. WT/TPR/S/ 423 • United Arab Emirates  
 
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  applications for Trading Authorizations  referred to it by the Competent Authority.115 The Minister of 
Energy and Infrastructure, in coordination with the Compet ent Authority, is required to issue rules 
on common conditions and procedures for the issuance of the Trading Authorization, for the issuance 
of a permit of transportation among Emirates and for registration in the Register, on the 
requirements and conditi ons of trading for each petroleum material, and on requirements and 
conditions related to the places of reservation, storage , and manufacture of the petroleum products 
and the ir means of transportation as well as safety and security criteria.116 Pursuant to  the Law on 
Trading Petroleum Products, the  Ministry of Energy and Infrastructure adopted a resolution in 
October 2020 on unified regulations related to trading petroleum products. The resolution , inter alia, 
established the required standards for obtainin g a trading licence and the procedures for being 
registered in the Ministry's trading registry.117 Unlike electricity and water tariffs, fuel prices are 
regulated at the federal level. Since 2015, domestic prices of gasoline and diesel have been indexed 
to international oil prices and are subject to monthly review by the Fuel Price Committee.  
4.2.3   Electricity and water  
4.57.   Electricity generation in the UAE traditionally has relied almost entirely on natural gas118, and 
the country is currently in the process of switch ing from nearly all the electricity being produced 
from natural gas to a basket of sources. In 2019, installed capacity was 33 GW,  total energy 
generation was 138,454 GWH, electricity consumption was 131,442.70 GWH, and peak load was 
24,961  MW.119 Electrici ty demand continues to increase in line with economic and population growth 
but at a slower pace compared with the increases in 2014 and 2015.120 
4.58.   The authorities indicate that the Federal  Constitution gives the Federal Government exclusive 
legislative and e xecutive jurisdiction over electricity services in the UAE.121 At the level of the 
individual Emirates, the main regulatory authorities in the water and electricity sectors are the Abu 
Dhabi Department of Energy122; the Dubai Supreme Council of Energy and th e Dubai Regulation and 
Supervision Bureau; the Sharjah Electricity and Water and Gas Authority (SEWGA); and the Etihad 
Water and Electricity123 (EWE) in the Northern Emirates of Ajman, Ras Al Khaimah, Fujairah, and 
Umm Al Quwain.124  
4.59.   Electricity transmission and distribution in the  UAE are controlled by government authorities 
and state -owned companies. The electricity market in each Emirate is based on a single buyer model, 
whereby electricity generated by power producers is sold on an exclusive basis to state -owned 
companies respons ible for power transmission and distribution. Thus, for example, in Abu Dhabi, 
the state -owned Emirates Water and Electricity Company (EWEC), is the sole procurer of water and 
electricity with a mandate to ensure the security of supply to consumers.125 To fulfil its mandate, 
 
115 Federal Law No.  14 of 2017, Article  9. 
116 Federal Law No.  14 of 2017, Article  5.  
117 Emirates News Agency  (2020), "Ministry of Energy and Infrastructur e Issues Resolution on Unified 
Regulations Related to Trading Petroleum Products", 8 October 2020. Viewed at: 
https://wam.ae/en/details/1395302875818 . 
118 IEA, Key Energy Statistics – United Arab Emirat es.  
119 Emirates Water and Electricity Company ( EWEC) was created in 2018 as a replacement for the 
Abu Dhabi Water and Electricity Company (ADWEC). While the scope of ADWEC's activities was limited to 
Abu Dhabi, EWEC has a wider mandate and covers the Northern Emirates in addition to Abu Dhabi.  
120 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 38.  
121 Some commentators observe that in practice the electricity sector is essentially regulated by the 
individual Emirates. See, for exampl e, Afridi, M. and Aloke, A. (2021), "The Energy Regulation and Markets 
Review: United Arab Emirates", The Law Reviews ; and DWF (2021), "Meeting the Growing Demand for Water 
and Electricity in the UAE", 4  May 2021. Viewed at: https://dwfgroup.com/en/news -and-
insights/insights/2021/5/meeting -the-growing -demand -for-water -and-electricity -in-the-uae. 
122 The Abu Dhabi Department  of Energy was created in 2018 as the single regulatory authority to 
replace the Abu Dhabi Water and Electricity Authority. Al Tamini & Company, "Electric Change: Implementation 
of UAE Power and Water Sector Shake Up", December 2019 -January 2020. Viewed at : 
https://www.tamimi.com/law -update -articles/electric -change -implementation -of-uae-power -and-water -sector -
shake -up/. 
123 The Eti had Water and Electricity Company was established in 2020 to replace the Federal Electricity 
and Water Authority.  
124 Afridi, M. and Aloke, A. (2021), "The Energy Regulation and Markets Review: United Arab Emirates", 
The Law Reviews , p. 2.  
125 Viewed at: https://www.ewec.ae/# . EWEC is part of ADQ, one of the largest holding companies in 
the region. For a detailed description of Abu Dhabi's electricity market see Hasan, S., et  al. (2019), Abu Dhabi 
Electricity Sector: Featur es, Challenges and Opportunities for Market Integration . Viewed at: WT/TPR/S/ 423 • United Arab Emirates  
 
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  EWEC enters into long -term purchase agreements with water and power producers, bulk supply tariff 
agreements with distribution companies, and fuel supply agreements with fuel suppliers. Contracts 
for water desalination and power generati on are awarded to independent water and power producers 
through a competitive bidding process managed by EWEC .126 EWEC provides water and electricity 
to the Abu Dhabi Transmission and Despatch Company (TRANSCO), which transmits the water and 
electricity to two distribution companies, Abu Dhabi Distribution Company (ADDC) and Al Ain 
Distribution Company (AADC) , and the Northern Emirates . EWEC procures electricity from 16 plants 
across the UAE, including 12 existing plants and 4 in the near future.127 In the ot her Emirates, 
SEWGA and EWE play a role similar to that of EWEC as single buyers of water and electricity.  
4.60.   The National Water and Energy Demand Management Programme, approved by the federal 
cabinet in August 2021, aims to achieve a 40% reduction in energy  demand by 2050 in the three 
most energy -consuming sectors in the UAE (transport, industry , and construction) and a 50% 
reduction in water demand.128 Demand -side management programmes have also been initiated at 
the emirate level. The aim of the Abu Dhabi D emand Side Management and Energy Rationalisation 
Strategy is to reduce electricity consumption by 22% and water consumption by 32% by 2030.129 
The Dubai Demand Side Management Strategy 2030 aims to reduce the demand for electricity and 
water by 30% by 2030.130 Measures taken by the Emirates to reduce electricity consumption have 
involve d building regulations and retrofits, price reform, demand response management, awareness 
and education, and grid efficiency and smart technology.131  
4.61.   The authorities indicate t hat total clean energy ( renewable and nuclear) installed capacity 
increased from 1,875  MW in 2019 to 4,500  MW in 2020 and is expected to reach 6,000  MW by the 
end of 2021. Renewable energy capacity increased very substantially during the period under revie w. 
According to one source, the UAE's capacity to generate electricity from renewable energy sources 
has increased more than sevenfold since 2017 and reached 2,540  MW in 2020.132 Almost all 
renewables capacity involves solar power. The key solar projects that were developed or are being 
developed are the Masdar 10  MW Photovoltaic Plant133; the 2 GW Al  Dhafra Photovoltaic Plant in 
Abu Dhabi ; and the Noor Abu Dhabi solar plant and th e Mohammed Bin Rashid Al Maktoum Solar 
Park in Dubai, which involves both photovoltaic and concentrated solar power  technologies , with a 
capacity of 2  GW today and an expected capacity of 5 GW in 2030.134 Another innovative project is 
the installed pilot of  a floating solar power plant that is set to have a capacity of 80  kilowatts in Abu 
Dhabi. Waste -to-energy facilities are being developed in Dubai, Abu Dhabi , and Sharjah. Another 
innovative project is the first hydroelectric power station in the GCC being  built in Hatta (Dubai) with 
the capacity of 250  MW. 
4.62.   The development of peaceful nuclear energy is a core component of the UAE's energy 
diversification strategy.135 In 2008, a Nuclear Energy Policy was released, and the Federal Authority 
for Nuclear Energy was created. The Emirates Nuclear Energy Corporation, established in 2009, 
oversees the construction of the UAE's first nuclear power station, the 5.6 GW Barakah Nuclear 
 
https://www.kapsarc.org/research/pu blications/abu -dhabi -electricity -sector -features -challenges -and-
opportunities -for-market -integration/ . 
126 Hasan, S., et  al. (2019), Abu Dhabi Electricity Sector: Features, Challenges and Opportunities for 
Market Integration , p. 14.  
127 EWEC, Plants – Existin g. Viewed at: https://www.ewec.ae/en/power -plants/existing .  
128 Emirates News Agency  (2021), "UAE Launches National Water and Energy Demand Management 
Programme", 4  August  2021. Viewed at: https://www.wam.ae/en/details/1395302957699 ; and information 
provided by the authorities . 
129 Amlôt, M. (2019), "Abu Dhabi Unveils Energy Strategy to Reduce Electricity and Water 
Consumption", Al Arabiya News , 10 September  2019. Viewed at: 
https://english.alarabiya.net/business/energy/2019/09/10/Abu -Dhabi -unveils -energy -strategy -to-reduce -
electricity -and-water -consumption . 
130 DSM Strategy Overview. Viewed at: https://dubaisce.gov.ae/en/taqati/ .  
131 Ministry of Energy and Industry, UAE State of Energy Re port 2019 , pp. 56 -59. 
132 International Renewable Energy Agency, United Arab Emirates – Electricity Capacity and Generation . 
Viewed at: 
https://www.irena.org/IRENADocuments/Statistical_Profiles/Middle%20East/United%20Arab%20Emirates_Mid
dle%20East_RE_SP.pdf .  
133 The first UAE solar project was launched in 2009, Masdar 10  MW Photovoltaic Plant.  
134 This park also contains the fir st industrial -scale green hydrogen plant in the MENA region.  
135 Ministry of Energy and Industry, UAE State of Energy Report 2019 , pp. 44 -47. WT/TPR/S/ 423 • United Arab Emirates  
 
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  Energy Plant in Abu Dhabi, which is expected to deliver up to a quarter of the country 's energy needs 
when its four units are fully operational.136  
4.63.   The electricity grids of the four main power authorities have been interconnected to form the 
Emirates National Grid (ENG). The ENG is connected to the GCC Interconnection Authority 
Transmission . However, the extent of electricity traded via this link remains limited. It has been 
reported that this interconnection "has a utilization rate below 10% owing to it being used for 
emergency and reserve sharing through bilateral contracts" and that diffe rences in regulations and 
different levels of energy subsidies limit the commercial viability of intra -GCC electricity trade.137 
4.64.   Electricity prices differ between Emirates and between nationals and expatriates.138 In 
addition, in Dubai different rates apply to different consumption slabs , while in Abu Dhabi electricity 
rates also differ between apartments and villas. Consumption of electricity (and water) in the UAE 
historically has been subsidized in that tariff rates have not covered actual production costs139, but 
price reforms implemented during the last decade, including in the context of recent demand -side 
management initiatives, have reduced the extent of subsidization.140 Thus, in Abu Dhabi, for 
example, electricity tariffs for UAE nationals remain heavi ly subsidized141 but residential electricity 
tariffs for expatriates, which increased significantly in recent years , are now close to the cost of 
supply.142 The UAE was one of the first GCC countries to reform its energy subsidies.143 According 
to IMF staff research published in 2017, "among oil exporters, the UAE stands out for its low level 
of subsidies".144  
4.65.   The UAE Water Security Strategy 2036, launched in 2018, aims to ensure sustainability and 
continuous access to water during nor mal and extreme emergency conditions. The Strategy was 
developed from a comprehensive national perspective to cover all elements of the water supply chain 
in the country with the participation of all entities and authorities concerned with water resources in 
the country. Th e Strategy defines the following specific targets: (i)  reduce demand for water 
resources by 21% and average consumption per capita by 50%145; (ii)  increase the water 
productivity index to USD  110 per cubic metre; (iii)  reduce the water scarcity index by three 
degrees, from 6.58 in 2017; (iv)  increase the reuse of treated water to 95%; (v)  increase the 
national water storage capacity to two days; and (vi) establish six connecting networks between 
water and electricity entities acros s the UAE with capacity to provide 91 litres of water per person 
per day in cases of emergency, or 30 litres per person per day in cases of extreme emergencies.146 
4.66.   The UAE has limited natural water resources and relies on seawater desalination as a primary 
source of potable water. The overall installed capacity of seawater desalination plants in 2019 was 
around 1,641 million imperial gallons per day and the total produced desalinated water in the same 
year was estimated at 442,319 million imperial gallons pe r year. The UAE is committed to further 
advancing industrial -scale, sustainable desalination technologies capable of meeting the country's  
 
136 Afridi, M. and Aloke, A. (2021), "The Energy Regulation and Markets Review: United Arab Emirates", 
The Law Review s, p. 8.  
137 Hasan, S., et  al. (2019), Abu Dhabi Electricity Sector: Features, Challenges and Opportunities for 
Market Integration , pp. 13, 19 -20; and APICOPRP (2021), MENA Energy Investment Outlook 2021 -2025, 
pp. 44-45.  
138 Unlike fuel prices, which are reg ulated at the federal level, electricity prices are set independently by 
the water and power authorities in each Emirate.  
139 See e.g. Gallaher, M., Alam, T., and Rouchdy, N. (2017), "The Impact of Electricity and Water 
Subsidies in the United Arab Emirates" , RTAI Press Policy Brief, May.  
140 Dubai introduced electricity tariff reforms in 2008 and 2011, followed by Sharjah and the Northern 
Emirates in 2014 and 2015, respectively, and by Abu Dhabi in 2015 and 2017. Ministry of Energy and Industry, 
UAE State of Energy Report 2019 , p. 58.  
141 Subsi dies are paid by the Government to the distribution companies to cover the gap between 
revenue targets set by the Government for those companies and the tariffs paid by customers. Abu Dhabi 
Department of Energy, Legislation and Compliance . Viewed at: https://www.doe.gov.ae/Legislation -and-
Compliance/Economic -Regulations ; and Afridi, M. and Aloke, A. (2021), "The Energy Regulation and Markets 
Review: United Arab Emirates",  The Law Reviews , p. 4. 
142 Hasan, S., et  al. (2019), Abu Dhabi Electricity Sector: Features, Challenges and Opportunities for 
Market Integration , p. 15.  
143 Boersma, T. and Griffiths, S. (2017), "Reforming Electricity, Water, and Fuel Subsidies in the United  
Arab Emirates", Oxford Energy Forum , March, Issue 108, pp. 21 -25.  
144 IMF (2017), If Not Now, When? Energy Price Reform in Arab Countries , p. 19.  
145 The authorities indicate, in this regard, that Abu Dhabi introduced a new water slab tariffs system to 
encourage sustainable consumption.  
146 Ministry of Energy and Industry, UAE State of Energy Report 2019 , p. 60.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  future demand for fresh  water. At present, the country is working on establishing three new water 
desalination plants  using reverse osmosis membrane technology in the Emirates of Abu Dhabi, 
Dubai, and Um  Al Quwain. The three plants are expected to produce additional 470 million imperial 
gallons of desalinated water per day by 2023.147 
4.67.   The UAE operates modern wastewater tr eatment facilities with tertiary and advanced 
treatment capabilities. Treated water is used mainly for landscaping irrigation purposes, such as 
irrigating public gardens and highway landscaping. The total installed capacity of wastewater 
treatment plants i n 2019 was about 899 million cubic metres per year , and the total produced treated 
wastewater in the same year was estimated at 736 million cubic metres per year.148 
4.3  Services  
4.3.1   Financial services  
4.68.   The Central Bank of the United Arab Emirates (UAE) regulates th e banking and insurance 
(since January 2021149) sectors, including for Islamic finance,150 with the three existing capital 
markets regulated by the Emirates Securities and Commodities Authority (SCA) and the Dubai 
Financial Services Authority (DFSA). Financi al services undertaken in the two financial free zones 
are regulated by two special authorities: DFSA in the Dubai International Financial Centre (DIFC) 
and the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM), 
which was  set up in 2015.151 Over the review period, the authorities revised the Central Bank law, 
improved the prudential regulation of the banking sector, and undertook reforms affecting 
transparency, conduct, and innovation in the insurance sector.  
4.69.   Financial serv ices accounted for 8.2% of GDP in 2020, and the sector employed nearly 
48,000  workers in 2018 or 2.5% of total employment in 2019. However, financial services play a 
significantly different role in various Emirates, accounting in 2019 for 7.7% of GDP in Ab u Dhabi152 
and 6.9% in Dubai153, but only 3.5% in Fujairah.154 
4.70.   Under its GATS commitments, the UAE made commitments on banking and other financial 
services (excluding insurance), with the exception of settlement and clearing services for financial 
assets, but  did not include commitments in the area of market access regarding the issuance of 
additional licences or the expansion of existing companies' activities.155 
4.3.1.1   Banking  
Structure  
4.71.   The financial system is dominated by the banking sector, accounting for 99% of f inancial 
sector assets at the end of 2020, an increase from the 98.5% they represented in 2016.156 Financial 
sector assets overall represented 242% of GDP in 2020, up from 199% in 2016, while bank deposits 
grew by 20.6% between end -2016 and end -2020. Over t he reporting period, the number of banks 
remained broadly stable and stood at 59 (as of September 2021), consisting of 21 national banks, 
 
147 Information provided by the authorities.  
148 Information provided by the authorities.  
149 Central Bank of the UAE. Viewed at: https://ia.gov.ae/en/ . 
150 For an overview of Islamic Banking principles, see Box 4.1 of WTO document WT/TPR/S/338/Rev.1, 
4 October  2016.  
151 Special DIFC courts administer justice for resolving all civil and commercial laws in the DIFC, while 
similar special courts also exist for the ADGM. DIFC, Laws & Regulations . Viewed at: 
https://www.difc.ae/business/laws -regulations/ . For additional information, also view Section 4.3.1.3.2 of 
WTO document WT/TPR/S/338/Rev.1, 4 October 2016.  
152 Abu Dhabi Statistics Centre, Economic Statistics:  National Accounts . Viewed at: 
https://www.scad.gov.ae/en/pages/statistics.aspx?topicid=37 .  
153 Government of Dubai, National Accounts, Output by Economic Activity 2019 . Viewed at: 
https://www.dsc.gov.ae/en -us/Themes/Pages/National -Accounts.aspx?Theme=24 .  
154 Fujairah Statistics Centre, National Accounts . Viewed at: 
https://www.fscfuj.gov.ae/WebsiteFiles/Reports/632/Table13 -12.pdf .  
155 WTO document GATS/SC/121 of 2  April 1996.  
156 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  27 foreign banks, 10 wholesale banks157, and 1 investment bank.158 Over the same time, the number 
of branches in the UAE declined from 846 in 2016 to 541 at the end of 2020159, as digitization 
processes were increasingly adopted and nearly half of the population older than 15 years accessed 
an account via mobile phone or the Internet.160 
4.72.   A well -established Islamic finance sector comprises both national and foreign fully fledged 
Islamic banks, Islamic windows at conventional banks, and Islamic finance companies, accounting 
for assets of AED 782 billion (or around 25% of total sector assets) at the end of 2020.161 
4.73.   The largest three commercial banks continue to dominate the banking sector, accounting for 
54% of assets and more than 50% of deposits in 2019 (Table 4.5). While the largest bank has a 
major state ownership, the o ther two have majority state ownership.162 The banking sector remains 
explicitly excluded from the application of the Competition Law ( Section  3.3.4.1 ). 
Table 4.5 Banking sector 2016 -20 
 
2016  2017  2018  2019  2020 
Structure  
 Number of licensed banks  60 61 60 59 58 
 Share of total assets for:  
 3 largest banks  39.3 47.5 48.9 53.7 54.1 
 10 largest banks  62.7 72.3 73.8 78.5 80.8 
Total assets (% of GDP)  199.3  190.2  185.0  201.2  241.9  
Total loans (% of GDP)  120.1  111.6  106.8  114.8  135.0  
Credit to private sector (% of GDP)  83.5 78.0 74.2 75.1 85.4 
Total deposits, excluding interbank (% of GDP)  119.2  114.9  113.2  122.1  143 
Capital adequacy  
 Regulatory capital to risk -weighted assets  18.9 18.1 17.5 17.7 18.1 
Asset quality  
 Net loans to total assets  56 54.4 53.4 52.7 50.9 
 Gross NPLs to net loans  5.1 5.3 5.6 6.5 8.2 
 Total provisions to gross NPLs  112.7  109.5  106.1  93.0 86.1 
 Net NPLs to total capital  5.1 6.1 7.2 10.2 14.0 
 Total provisions for loan losses (% of total loans)       
 Contingent and off -balance -sheet accounts to total assets  118 117.9  125.1  137.5  144.5  
Profitability  
 Profits (% change)  -5.8 8.4 8.6 9.4 -54.9 
 Average pre -tax return on assets  1.5 1.5 1.6 1.6 0.7 
 Return on equity  10.7 10.8 11.0 11.2 4.8 
 Non-interest expenses to total income  38.0  39.1  35.9  33.8  37.0  
 Average lending spread       
Source:  Information provided by the authorities.  
 
157 Wholesale banks are licensed like regular banks, but natural persons cannot open accounts with or 
accept deposits from wholesale banks.  
158 Central Bank of the UAE, Financial Institutions . Viewed at: https://www.centralbank.ae/en/financial -
institutions .  
159 Central Bank of the UAE (2018), 2017 Annual Report . Viewed at: 
https://centralbank.ae/sites/default/files/2018 -10/CBUAEAnnualReport -2017_En.pdf ; and Central Bank of the 
UAE (2021), 2020 Annual  Report . Viewed at: https://www.centralbank.ae/sites/default/files/2021 -
04/CBUAE%20 -%20Annual%20Report%202020.pdf .  
160 Global Findex Database 2017.  
161 For additional information, see "Box: Islamic Finance Sector" in Central Bank of the UAE (2021), 
Financial Stability Report 2020 . Viewed at: https://www.centralbank.ae/sites/default/files/2021 -
06/EN%20CBUAE%20FSR%20Report%202020_1.pdf . 
162 These are First Abu Dhabi Bank, owned 33% by the Abu Dhabi Investment Council (an Abu Dhabi 
SWF), Emirates National Bank Dubai, owned 55.8% by the Government of Dubai via the Investment 
Corporation of Dubai, and Abu Dhabi Commercial Bank, owned 60.2% by the Abu Dhabi Investment Council. 
Viewed at: https://www.statista.com/statistics/715828/uae -total-assets -by-major -commercial -banks/ .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.74.   Return on assets (equity) improved during most of the reporting period before dropping 
significantly during the pandemic to reach 0.7% (4.8%) at the end of 2020.163 During 2020, total 
profits of banks fell by 55.1% compared to 2019, driven by l ower incomes and higher impairment 
charges, partially compensated by lower operating expenses.164 During the second quarter of 2021, 
return on equity started to recover and reached 7.2%, while return on assets recovered to 1.0%.165 
While the cost -to-income r atio of national banks increased slightly to 33.8% at the end of 2020 
(35.4% for Islamic banks, and 37.0% for all banks of the banking system), it remains among the 
lowest globally.166 According to some market observers, profitability is expected to remain subdued 
in the coming years as the economic impacts of the pandemic continue to show and banks continue 
to operate in a low interest rate environment.167 
4.75.   Over the reporting period, the structure of bank credit at UAE banks shifted slightly towards 
governmen t and government -related entities (GREs), accounting for 23.1% of total gross lending in 
2016 but 26.5% at the end of 2020, while lending to the private sector declined from 68.6% to 
62.3% over the same period.168 Lending to the Government increased in 2019 , while lending to 
GREs increased in both 2019 and 2020, contributing to lower risk -weighted assets and an improved 
Capital Adequacy Ratio (see below). The composition of lending to the private sector remained 
broadly unchanged (Table 4.6).  Bank lending to  micro, small, and medium -sized enterprises 
(MSMEs) stood at AED 84.7 billion (10.4% of total credit to the private sector) at the end of 2019, 
lower than in 2017.169 
Table 4.6 Bank credit by economic activity, 2016, 2018, and 2020  
(AED million)  
 2016  2018  2020  
Amount  Share  Amount  Share  Amount  Share  
Lending to government 
(central and local)  172,366  11.85  191,498  12.69  251,923  15.78  
Lending to GREs  187,416  12.89  167,921  11.12  219,950  13.77  
Lending to private sector  1,094,632  75.26  1,150,018  76.19  1,124,913  70.45  
 Agriculture and fishing  1,374  0.09 1,984  0.13 2,173  0.14 
 Manufacturing and 
 production  69,300  4.76 76,982  5.10 73,506  4.60 
 Mining and quarrying  13,550  0.93 14,734  0.98 14,940  0.94 
 Water, electricity, gas and 
 health services  18,455  1.27 16,998  1.13 27,310  1.71 
 Building and construction  264,762  18.20  315,490  20.90  327,533  20.51  
 Commerce  155,821  10.71  154,033  10.20  138,675  8.68 
 Transport and 
 communications  63,507  4.37 51,496  3.41 84,818  5.31 
 Finance  145,561  10.01  130,107  8.62 110,357  6.91 
 Services  125,324  8.62 148,781  9.86 146,165  9.15 
 Other miscellaneous 
 services  236,978  16.29  239,413  15.86  199,436  12.49  
Total  1,454,414   1,509,437   1,596,786   
Source:  Information provided by the authorities.  
 
163 Return on assets increased from 1.5% at the end of 2016 to 1.8% during the first quarter of 2019, 
before receding marginally during the remainder of 2019. Following the same pattern, return on equity first 
increased from 10.7% to 12.9% during the first quarter of 2019 before starting to recede. Central Bank of the 
UAE (2021), Core Financial Soundness Indicators Q2 2021 . Viewed at: 
https://centralbank.ae/sites/default/files/2021 -08/Core%20Financial%20Soundness%20Indicators%20 -
%20Q2%20%28June%29%202021_090821.pdf . 
164 Central Bank of the UAE (2021), Financial Stability Report 2020 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -06/EN%20CBUAE%20FSR%20Repo rt%202020_1.pdf . 
165 Central Bank of the UAE (2021), Core Financial Soundness Indicators Q2 2021 . 
166 Central Bank of the UAE (2021), Financial Stability Report 2020 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -06/EN%20CBUAE%20FSR%20Report%202020_1.pdf .  
167 Standard and Poor's Global (2021), UAE Banking Sector 2021 Outlook – A Long Recovery Road 
Ahead . Viewed at: https://www.spglobal.com/_assets/documents/ratings/research/100048588.pdf .  
168 Central Bank of the UAE (2021), 2020 Annual Report ; and Central Bank of the UAE (2019), 2018 
Annual Report . 
169 Central Bank of the UAE (2020), Annual Report 2019 . WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.76.   While access to banking services has improved further and has become nearly universal, 
differences in access remain. Overall, 88% of the population above the age of 15 had an account in 
2017, but the share was lower for young adults, female citizens, and those less educated, relatively 
poorer, living in rural areas, or out of the labour market.170 
4.77.   According to the annual reports of the Central Bank, the share of bank deposits by  GREs 
(Government and GREs) in total bank deposits increased from 10.7% (22.7%) at the end of 2016 
to 13.5% (28.8%) at the end of 2020 at the expense of private sector deposits (falling from 62.7% 
to 58.4%). The share of total deposits held at Islamic bank s declined from 23.6% in 2017 to 21.8% 
in 2020, while the share of deposits with foreign banks decreased from 12.7% to 12.3%.171 
Regulatory environment  
4.78.   A new Central Bank law was approved in 2018,172 replacing the 1980 Central Bank law and 
the 1985 Law Regar ding Islamic Banks, Financial Institutions and Investment Companies. While the 
new law keeps the overall framework broadly unchanged, it provides for regulation by type of 
banking activity rather than by type of financial institution. The new law also intr oduces additional 
elements that include governance and consumer protection. While the 2018 law provides for the 
possibility of establishing a deposit guarantee scheme (Article  122), an actual scheme has not yet 
been set up. In addition, the Central Bank un dertook significant regulatory changes relating to 
prudential regulations, financial stability, Shariah -compliance, and consumer protection during the 
review period.  
4.79.   The Central Bank continues to license banks and other financial activities, and licensed 
financial institutions are entered in a publicly available register before they can start to undertake 
licensed activities. National (domestic) banks have to be set up as public joint stock companies of 
which UAE nationals must hold at least 60% of shares. Foreign banks in the onshore economy must 
establish a branch or representative office but cannot set up a subsidiary. Foreign banks must first 
obtain a licence for their main office (branch) before being able to request additional licences for 
additional b ranches. The authorities indicate that there are no formal restrictions in place regarding 
the number of banking licences that can be issued, and that there are no formal limits to the number 
of branches each foreign bank can open. However, the Central Ban k website still refers to the 
objective of limiting the issuance of licences to any new bank and to limit the number of branches 
per foreign bank to a maximum of eight.173 The general regulatory framework does not directly apply 
to the Financial Free Zones in Dubai and Abu Dhabi, which are separately regulated and where it is 
possible for foreign banks to directly establish a branch or subsidiary. Such banks, however, are not 
eligible to take deposits from the UAE onshore economy without obtaining a licence from the Central 
Bank and cannot deal in AED.  
4.80.   Reforms in 2017 introduced the Basel III framework for capital adequacy ratios, setting the 
minimum capital ratio at 10.5% (down from 12% using the Basel II framework), the minimum Tier  1 
capital ratio at 8.5%, and a capital conservation buffer at 1.25% (i ncreasing to 2.5% by 2019). At 
the same time, the Central Bank introduced an additional buffer for domestic systemically important 
 
170 Global Findex Database 2017.  
171 See 2017 and 2020 Annual Reports by the Central Bank of the UAE.  
172 Decretal Federal Law No.  14 of 2018 Regarding the Central Bank  of the UAE  & Organization of 
Financial In stitutions and Activities. Viewed at: 
https://www.mof.gov.ae/en/lawsAndPolitics/govLaws /Documents/Decretal%20Federal%20Law%20No.%20%2
814%29%20of%202018%20Regarding%20the%20Central%20Bank.pdf . Amended by Decretal Federal Law 
No. 25 of 2020. Viewed at: https://www.centralbank.ae/sites/default/files/2021 -06/EN%20 -
%20Decretal%20Federal%20Law%20No.%20%28 25%29%20of%202020%20Regarding%20the%20amendme
nt%20of%20some%20provisions%20of%20the%20Decretal%20Federal%20Law%20No.%20%2814%29.pdf .  
173 Central Bank of the UAE, Commercial Banks . Viewed at: https://www.centralbank.ae/en/financial -
institutions/Commercial%20Banks .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  banks174, as well as a countercyclical buffer.175 As part of the TESS (Section 1.2), banks  were allowed 
to tap into the capital  conservation buffer from March 2020 without regulatory consequences, 
effectively setting it at 1% (while formally keeping it at 2.5%), a policy that continued until the end 
of 2021. Likewise, domestic systemically important banks were allowed to fully use  their additional 
buffer without regulatory consequences until the end of 2021. Circular No.  12/2021 of 
14 February  2021 determined new minimum capital requirements for banks, ranging from 
AED 2 billion of fully paid -in capital for incorporated banks and A ED 300 million for Specialized Banks 
(see below) to AED  100 million per branch and eligible capital of at least AED 2 billion at the entity 
level.176 These rules, which do not apply to banks in the financial free zones, will come fully into 
force in 2023 an d could lead to new mergers as a number of banks have paid -in capital below this 
threshold.177 A Basel III -type leverage ratio of 3% (3.5% for domestic systemically important banks) 
is being introduced by Q4  2021.  
4.81.   In 2021, the Central Bank introduced a lice nsing and supervision framework for "Specialized 
Banks with Low Risk". Such banks are limited in the activities they can undertake. They have lower 
minimum capital requirements, can accept deposits only from UAE nationals and only up to 
AED 500,000 (or the  insured amount under the deposit guarantee scheme once established) per 
client, face limits on ownership concentration as well as the concentration of taking and placing 
deposits, and their assets cannot exceed AED 25 billion. UAE national ownership of a Specialized 
Bank must comprise at least 60% of total paid -up capital.178 These banks otherwise have to follow 
regular banking regulations and standards.  
4.82.   Over the reporting period, the Central Bank continued to improve the prudential regulatory 
framework by introducing regulations and standards on risk management in 2018, requiring banks 
to establish risk governance frameworks, a risk management "function" headed independently from 
operational departments, and a mechanism to monitor risks, requiring disclosur e of the system's 
key components as well as actual risk exposure.179 It also issued a Country and Transfer Risk 
Regulation (Circular No.  154/2018 of 27  May 2018), Operational Risk Regulation (Circular 
No. 163/2018 of 29  August  2018), Market Risk Regulation (Circular No.  164/2018 of 
29 August  2018, addressing on - and off -balance sheet risks related to the movement of market 
prices), and Interest Rate and Rate of Return Risk in the Banking Book Regulation (Circular 
No. 165/2018 of 29  August  2018). In 2019, the  Central Bank also issued prudential Corporate 
Governance Standards for Banks.180 These include responsibilities of their boards and prescribe that 
each bank establishes a written code of conduct and a whistle -blower policy, and a 
conflict -of-interest polic y. The standards also prescribe broad requirements for board members 
(20% of proposed bo ard members must be female), and regulate transactions with related parties, 
compensation, as well as disclosure and transparency.  
 
174 During 2020, the Central Bank  of the UAE  revised the methodology for determining domestic 
systemically important banks, with the additional buffer varying depending on importance. The list of banks 
considered systemically important did not change and remains: First Abu Dhabi Bank (FAB), Emirates  NBD 
(ENBD), Abu  Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB). See Central Bank of the UAE 
(2021), Financial Stability Report 2020 . Viewed at: https://www.centralbank.ae/sites/default/files/2021 -
06/EN%20CBUAE%20FSR%20Report%202020_1.pdf .  
175 For additional information, see Central Bank  of the UAA  Circular No.  52/2017 of 23  February  2017. 
Viewed at: https://centralbank.ae/sites/default/files/2020 -
02/2017%20Capital%20Adequacy%20Regulation.pd f.  
176 Prior to this reform, the minimum capital requirement for regular banks was AED 40 million.  
177 Overdahl, S. (2021), "UAE's New Capital Rule Could Trigger Further Bank M&A in 'Overbanked ' 
Market", S&P Global Market Intelligence , 17 June 2021. Viewed at : 
https://www.spglobal.com/marketintelligence/en/news -insights/latest -news-headlines/uae -s-new-capital -rule-
could -trigger -further -bank-m-a-in-overbanked -market -64986070 .  
178 Central Bank of the UAE (2021), Specialized Banks with Low Risk Regulation , Central Bank  of the 
UAE Circular No.  13/2012 of 14  February  2021. Viewed at: https://centralbank.ae/sites/default/files/2021 -
04/Specialized%20Banks%20with%20Low%20Risk%20Regulation.pdf .  
179 Central Bank of the UAE  (2018), Risk Management Regulation and Standards , Circular No.  153/2018 
of 27 May 2018. Viewed at: https://centralbank.ae/sites/default/fi les/2020 -02/C%20153 -
2018%20Risk%20Management%20Regulation.pdf .  
180 Central Bank of the UAE (2019), Corporate Governance Standards for Banks , Circular No.  83/2019 of 
18 July 2019. Viewed at: https://centralbank.ae/sites/default/files/2021 -
03/2019%20Corporate%20Gov%20Standards_0.pdf .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.83.   In 2020, the Central Bank issued stan dards for Shariah governance for Islamic financial 
institutions and regulatory requirements for financial institutions housing an Islamic window.181 
According to the Central Bank, the standards address issues related to the governance of the Islamic 
window within the licensed financial institutions, the Shariah -compliant management of assets and 
liabilities, IT systems, and reporting of the Islamic window's activities, with a bank's Board of 
Directors ultimately responsible for compliance with Sharia h princi ples. For licensed banks that 
conduct all or part of their activities in accordance with the provisions of Islamic Shariah, additional 
standards on "Risk Management Requirements for Islamic Banks" were issued on 10  February 2021 
and have been applied since  early August 2021. The Central Bank's Higher Shariah Authority for 
Islamic Banking and Financial Activities (HSA), established under the new Central Bank law, also 
issues resolutions regarding Shariah aspects that Islamic financial institutions have to fo llow, reviews 
and approves product applications by banks, and approves banks' internal Sharia h Supervision 
Committee reports. It also issues high -level guidance, for example, regarding the Shariah -compliant 
replacement of London interbank offered rates (LI BOR) in lending instruments with floating interest 
rates following their phase -out at the end of 2021. As of September 2018, the Central Bank also 
adopted the Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI) Shariah 
standar ds.182 
4.84.   Since 2020, strengthened consumer protection regulations (Circular No.  8/2020 of 
25 November 2020) have set standards for licensed banks' business and market conduct, 
strengthened oversight over financial products offered, aimed to protect consumers from becoming 
overly indebted, strengthened disclosure requirements for banks and access to information by 
clients, facilitated redress for consumer complaints, and supported competition. To facilitate access 
to finance by SMEs, the Central Bank issued a " Small to Medium Sized Enterprises (SME) Market 
Conduct Regulation"183, setting disclosure and communication requirements for financial institutions 
dealing with SMEs, including an obligation for responsible ethical and financial conduct and 
establishing a complaint mechanism.  
4.85.   Authorities in each Emirate levy a profit tax of 20% on foreign bank branches (a tax not levied 
on domestic banks). Foreign banks were not required to have a national agent to establish 
themselves prior to the recent ref orm of the Companies Law, so the revisions do not affect foreign 
banks. There are no specific limits for domestic banks or individuals to borrow abroad or make 
deposits abroad, other than general limits for credit concentrations that also for local exposur es. 
Financial stability  
4.86.   Despite the challenging environment resulting from the COVID -19 pandemic, the overall 
financial situation of the banking sector in the UAE remains sound. According to the Central Bank's 
2020 Financial Stability Report, the Capital A dequacy Ratio (CAR) stood at 18.1% at the end of 
2020, up from 17.6% in 2019 and well above the regulatory minimum, although it varies across 
banks. The CAR for fully fledged Islamic banks stood at 19.9% at the end of 2020.184 In 2020, the 
average CAR for a ll banks increased primarily due to a reduction in risk -weighted assets as banks 
increased lending to GREs and increases in available capital mainly attributable to retained 
earnings.185 The CAR is calculated in line with Basel III guidelines as of December  2017 in line with 
Central Bank Circular 52/2017 (see above).186 According to the Central Bank, commercial banks also 
held ample liquidity at the end of 2020. The Liquidity Coverage Ratio (LCR) stood at 149.4% at the 
end of 2020187, while the Eligible Liquid  Assets Ratio (ELAR) stood at 18.4%, well above the 
 
181 Central Bank of the UAE, Standard Re. Shari'ah Governance for Islamic Financial Institutions , 
21 April 2020 and Standar d Re. Regulatory Requirements for Financial Institutions Housing an Islamic Window , 
18 October 2020. Viewed at: https://centralbank.ae/en/laws -and-regulations/regulations/ba nking .  
182 AAOIFI, AAOIFI Welcomes UAE's Adoption of Its Standards . Viewed at: 
http://aaoifi.com/announcement/aaoifi -welcomes -uaes-adoption -of-its-standar ds/?lang=en . 
183 Central Bank  of the UAE  Circular 1/2021 of 16  January  2021.  
184 Central Bank of the UAE (2021), Financial Stability Report 2020 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -06/EN%20CBUAE%20FSR%20Report%202020_1.pdf .  
185 Central Bank of the UAE (2021), Financial Stabilit y Report 2020 , p. 30. 
186 Central Bank of the UAE (2021), Core Financial Soundness Indicators Q1 2021 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -05/Core%20Financial%20Soundness%20Indicators%20 -
%20Q1%20%28March%29%202021_270521.pdf .  
187 Five of the UAE banks have been approved to use the Basel III LCR and Net Stable Funding Ratio.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  regulatory minimum of 10% (and temporarily relaxed to 7% until end -2021 as part of the TESS).188 
The Net Stable Funding Ratio for approved banks stood at 110.6% at the end of 2020, while the 
Advances to St able Resources Ratio was 77.8%, well below the threshold of 100% (adjusted to 
110% until end -2021 as part of the TESS).  
4.87.   The share of non -performing loans (NPLs) to total loans, however, is relatively high as it 
increased from 5.1% at the end of 2016 to 8.2 % at the end of 2020, despite adjustments in 
methodology to allow for more accurate comparison with other jurisdictions (historically, the 
methodology used in the UAE slightly inflated the ratio compared to international best practices). 
Over the same time , the ratio of NPLs net of provisions to capital increased from 5.1% to 14.0% 
(Table 4.5).189 The net NPL ratio, introduced in 2019 to improve comparability with other 
jurisdictions190, stood at 3.5% on average at the end of 2020191, up from 1.5% in 2016. At the same 
time, the NPL ratio for Islamic banks stood at 3.4%.192 
FinTech  
4.88.   The Central Bank set up a dedicated FinTech office during the second half of 2020 with the 
aim of developing a mature FinTech ecosystem in the UAE and establishing the country as a global 
FinTech hub.193 The office aims to develop a comprehensive regulatory environment as well as digital 
infrastructure. According to the authorities, the Central Bank is developing an instant payment 
platform and infrastructure for digital payments clea ring and settlement services among banks, 
exchange houses, e -wallet schemes, and other transactions in line with the National Payments 
System Strategy announced in 2018, as well as additional digital platforms, such as an e -KYC model, 
an SME funding soluti on, or a distributed technology ledger trade finance platform. To develop the 
regulatory framework, the Central Bank updated in 2020 the 2016 "Regulatory Framework for Stored 
Value and Electronic Payment System". Regarding electronic payments, it issued a specific 
regulatory framework for "Stored Value Facilities" (SVFs) (Circular No.  6/2020 of 
30 September  2020), which will be fully applicable by September 2021.194 As per the regulations, 
all SVFs will now require a prior licence, unless they are single pur pose facilities (where the stored 
value can only be used for products and services provided by the issuer of the SVF), or the provider 
receives an explicit exemption from the Central Bank. As of November 2021, three SVF service 
providers were licensed in t he UAE.195 Two additional payment regulations regulate Large Value 
Payments (Circular No.  9/2020 of 10  January  2021) and Retail Payment Systems 
(Circular  No. 10/2020 of 10 January 2021), requiring operators of such systems to be licensed by 
the Central Bank . Both will be implemented following a one -year transition period.196 
4.89.   Regulations in the two financial free zones have been supportive of FinTech development and 
both financial zones had established special initiatives to support the development of the indu stry 
earlier: a FinTech Hive in the DIFC was established in 2017 and the DFSA launched a regulatory 
sandbox, called the Innovation Testing Licence, while ADGM set up a regulatory sandbox, the 
RegLab, in 2016. The FinTech Hive has supported over 120 FinTech  start-ups, and it provides funding 
 
188 Centra l Bank of the UAE (2021), Financial Stability Report 2020 . For a definition of the ELAR, which 
is calculated for all banks operating in the UAE, see Central Bank  of the UAE  Circular No.  33/2015, "Regulation 
re Liquidity at Banks" of 27  May 2015. Viewed at:  https://centralbank.ae/sites/default/files/2018 -
12/Liquidity%20regulation.pdf .  
189 Central Bank of the UAE (2021), Core Financial Soundness Indicators Q1 2021 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -05/Core%20Financial%20Soundness%20Indicat ors%20 -
%20Q1%20%28March%29%202021_270521.pdf . 
190 Central Bank of the UAE (2019), Central Bank of the UAE Enhances its Reporting of Non -performing 
Loans . Viewed at: https://www.centralbank.ae/sites/default/files/2019 -
06/PR_EnhancedNPLMethodology_En_27062019.pdf .  
191 The net NPL ratio varied significantly across sectors, reaching for example 9.2% for the construction 
sector.  
192 Central Bank of the UAE  (2021), Financial Stability Report 2020 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -06/EN%20CBUAE%20FSR%20Report%202020_1.pdf . 
193 Central Bank of the UAE, FinTech Office . Viewed at: https://www.centralbank.ae/en/fintech -office . 
194 This regulation repealed the "Regulatory Framework for Stored Value and Electronic Payment 
System" of 13  December  2016.  
195 Central Bank of the UAE, CB Register as of November 2021 . Viewed at: 
https://www.centralbank.ae/sites/default/files/2021 -12/CB%20Register%20%28%D9%90November -
2021.%29.pdf .  
196 These regulations can be viewed at : https://www.centralbank.ae/en/laws -and-
regulations/regulations/other -licensed -institutions .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  and access to accelerator programs, mentoring from leading companies, a co -working space, and 
opportunities to obtain funding. In May 2021, it was incorporated into the DIFC Innovation Hub, the 
largest agglomeration of F inTech companies in the Gulf Cooperation Council (GCC) according to the 
authorities. The regulatory sandbox has accepted almost 70 firms into the programme, of which 3 
have graduated to a full licence and 5 are live testing, according to the authorities. B y September 
2019, the ADGM had admitted 32 firms to participate197 and participants that had not yet graduated 
migrated to the newly launched ADGM Digital Lab in late 2019.198 To date, over 90 FinTechs, financial 
institutions, investors, technology firms, ac ademic institutions, and government entities have 
participated in the Digital Lab, according to the authorities.  
4.3.1.2   Insurance  
Structure  
4.90.   Following the merger of the Insurance Authority and the Central Bank of the UAE, the Central 
Bank has regulated and supervi sed the insurance sector since 1  January  2021 with a view to develop 
and enhance the role of the insurance industry.199 The Central Bank has the same regulatory role as 
the Insurance Authority did in the past. Companies operating in the DIFC are regulated b y the DFSA, 
and those operating in the ADGM by the FSRA.  
4.91.   During the review period, 62 insurance companies operated in the UAE, 26 of which were 
foreign, 24 national, and 12 national Takaful companies.200 Gross written premiums (GWPs) 
increased from AED 40 b illion in 2016 to AED 42.5 billion in 2020. According to the authorities, 
10.2% of these were underwritten by the Takaful sector. The share of national insurance companies 
in total GWPs increased from 62.2% to 68.4% between 2016 and 2020, with the rest bei ng 
underwritten by branches of foreign insurance companies. This limited growth in GWPs between 
2016 and 2020 occurred while total assets increased by 28.9% to AED 115.9 billion and investments 
increased by 38.7% to AED 72.8 billion.201 In 2020, the share o f UAE nationals among those 
employed within the insurance sector reached 12.7%.202 
4.92.   Among the 30 insurance companies listed on the stock exchanges, the three largest accounted 
for nearly 50% of market share. Growth in insurance was broad -based across various types of 
insurance except for motor vehicle and insurance of persons and fund accumulation (life insurance), 
which declined. Since 2017, health insurance has been mandatory for all residents in the Emirate of 
Dubai, contributing to an increase in t he share of health insurance in GWP from 43% in 2016 to 46% 
in 2020. According to the authorities, the largest share of GWP in 2020 was accounted for by 
insurance brokers (45.8%), banks (8.2%), and agents (5%), with a large share of the remainder 
being acc ounted for by direct insurance. The use of reinsurance by insurance companies increased 
over the reporting period with the retention ratio across all insurance classes falling from 63.4% in 
2016 to 56.9% in 2020.  
Regulatory environment  
4.93.   The Federal Insuranc e Law (No.  6 of 2007) continues to govern the insurance sector.203 Over 
the review period, regulators undertook reforms primarily aimed at increasing transparency for 
customers, improving conduct, regulating reinsurance, and establishing a regulatory sandbo x. 
 
197 ADGM (2019), ADGM Admits 4th RegLab Cohort and Annou nces Successful RegLab Graduates 
Deploying Solutions into Live Markets , 25 August  2019. Viewed at: 
https://www.adgm.com/media/announcements/adgm -admits -4th-reglab -cohort .  
198 Emirates NDB (2021), Fintech: The UAE Ecosystem . Viewed at: 
http://www.emiratesnbdresearch.com/plugins/Research/files/Fintech_Final.pdf .  
199 Federal Law No.  25 of 27 September  2020 Regarding the Amendment of Some Provisions of the 
Decretal Federal Law No.  14 of 2018 Regarding the Central Bank  of the UAE  & Organization of Financial 
Institutions and Activities. Viewed at: https://www.centralbank.ae/sites/default/files/2021 -06/EN%20 -
%20Decretal%20Federal%20Law%20No.%20%2825%29%20of%202020%20Regarding%20the%20amendme
nt%20of%20some%20provisions%20of%20the%20Decretal%20Federal%20Law%20No.%20%2814%29.pdf .  
200 Central Bank  of the UAE  (2021), Financial Stability Report 2020 . 
201 Information provided by the authorities.  
202 Central Bank of the UAE (2021), 2020 Annual Report , p. 42.  
203 According to the authorities, it was amended by Federal Law No.  24 of 2020.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.94.   The Central Bank issues licences for insurance companies that have to be set up as public 
stock companies, while foreign insurance companies are allowed to open a branch (for which they 
have to appoint an authorized manager) or representative office.204 Insurance companies require a 
minimum capital of AED 100 million (this also applies to branches of foreign companies) and must 
be owned at least 51% by UAE or GCC nationals (or firms). Foreign insurance companies can also 
operate via licensed insurance age nts in the UAE.205 According to Article  25 of the Insurance Law, a 
company is not allowed to carry out life and non -life insurance at the same time unless it was 
licensed to transact both life and non -life business before the issuance of Federal Law No. 6 o f 2007, 
in which case rights to transact both types of insurance were grandfathered. Traditional insurance 
companies are also not permitted to offer Takaful insurance.  
4.95.   Insurance and reinsurance brokers, agents, appraisal surveyors and loss adjusters, insur ance 
consultants, actuaries, or insurance policies price comparison websites are required to register with 
the Central Bank and obtain a licence (subject to approval) prior to undertaking their functions. In 
2018, the regulator issued instructions206 to reg ulate bancassurance activities, which represented 
29.1% of the  GWPs  in the life insurance sector in 2020.207 According to the new regulation, banks 
require prior approval by the regulator before marketing certain insurance policies, and they may 
not issue p olicies, settle claims, or pay compensations. In 2020, the regulator introduced a licensing 
requirement for insurance producers (persons who market insurance policies).208 The regulator also 
issued specific regulations on licensing and registration of individual and corporate actuaries in 2017, 
defining qualification requirements, minimum capital, and insurance requirements, and also limiting 
the amount of work each actuary  can undertake.  
4.96.   All new insurance products require prior approval from the regulator before they can be 
marketed. Tariffs are only regulated in the case of motor insurance.209 However, companies have to 
share with the regulator the specimens of all insuranc e policies, as well as their terms and conditions, 
premiums, and for life insurance policies also the rules regarding the future value.   
4.97.   In 2019, the regulator issued specific regulations on reinsurance, also covering re -Takaful to 
encourage the developmen t of the reinsurance sector in the UAE.210 The regulations outline minimum 
capital requirements for reinsurance companies and confirm minimum ownership of 51% by UAE or 
GCC nationals (or firms), while setting a minimum credit rating for foreign companies ai ming to set 
up a reinsurance branch in the UAE. Licensed insurance (and Takaful) companies are also permitted 
to undertake reinsurance (re -Takaful) business in the UAE in the same types and classes of insurance 
they are licensed to practice, after obtainin g specific approval by the regulator to do so. Such 
underwritten reinsurance business by insurance companies is limited to 49% of their total GWP 
unless the regulator grants a special exception. The minimum capital requirement for re -insurance 
companies is  AED 250 million (AED 350 million for firms undertaking both insurance and re -insurance 
activities).  
4.98.   To increase transparency and support consumers, the regulator issued Instructions for Life 
Insurance and Family Takaful Insurance in 2019.211 These instruct ions introduce limits on 
commissions payable to insurance brokers or intermediaries, disclosure rules on fees and charges, 
 
204 Federal Law No.  25 of 27  September  2020 Regarding the Amendment of Some Provisions of the 
Decretal Federal Law No.  14 of 2018 Regarding the Central Bank  of the UAE  & Organization of Financial 
Institutions and Activities.  
205 Such insurance agents can only w ork for one company.  
206 Insurance Authority's Board of Directors Decision No.  13 of 23  May 2018 Concerning Instructions of 
Marketing Insurance Policies Through Banks, Viewed at: 
https://ia.gov.ae/en/RulesRegulations/decisionsregulationsinstructionsDocs/Insurance%20Authority%20Board
%20of%20Directors%20Decision%20No.pdf . 
207 Data provided by the authorities . 
208 Insurance Authority Board of Directors' Resolution No.  27 of 18  November  2020 Concerning the 
Instructions for Licensing Insurance Producers.  
209 Board of Directors' Resolution No.  30 of 15  December  2016 Concerning Issuing Regulation for Motor 
Vehicle In surance Tariffs (last amended by Insurance Authority Board of Directors' Resolution No.  17 of 
22 April 2020).  
210 Insurance Authority's Board of Directors Decision No.  23 Concerning Instructions Organizing 
Reinsurance Operations of 14  May 2019. Viewed at: 
https://ia.gov.ae/en/RulesRegulations/decisionsregulationsinstru ctionsDocs/Insurance%20Authority%E2%80%
99s%20Board%20of%20Directors%20Decision%20%20No.(%2023)%20%20of%202019.pdf .  
211 Insurance Authority Board of Directors' Decision No.  49 Concerning Instructions for Life Insurance 
and Family Takaful Insurance of 9  Octob er 2019.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  a 30-day cost -free cancellation right to the client, requiring insurance product approval by the 
regulator, and a requirement to prov ide explicit information on expected returns and their uncertain 
nature for savings products to customers. Amendments to the instructions for licensing health 
insurance third -party administrators included the requirement to file quarterly reports by such 
providers to facilitate supervision.  
4.99.   In 2020, the regulator issued the Electronic Insurance Regulation relating to e -insurance and 
"smart insurance", complementing the more general regulations spelled out under the Federal Law 
concerning Federal Law No.  1 of 30 January  2006 on Electronic Commerce and Transactions. Under 
the regulations, firms may sell generic life and personal insurance policies, as well as certain types 
of liability and property insurance, online. The regulations further protect consumer ri ghts by 
prohibiting anti -competitive behaviour between price comparison websites for insurance products 
(which have to be licensed annually by the regulator), insurance brokers, and insurance companies.  
4.100.   In 2019, the regulator established a regulatory sandb ox for the insurance sector to 
encourage innovation and the development of InsurTech applications. The provisions define the 
categories of potential applicants and eligibility criteria during the pilot period, but no information 
was available regarding the  uptake of the sandbox by companies to date.  
4.101.   A number of additional changes include the continued efforts to introduce International 
Financial Reporting Standard regarding accounting for insurance contacts (IFRS -17) by 2023, which 
included, for example, a requirement for each insurance company to undertake a gap assessment 
and to establish a road map for IFRS -17 transition.212 The establishment of a Digital Insurance 
Supervision Platform is meant to automatically use financial and non -financial data on companies' 
operations, their financial statements, and other information to improve sector supervision using 
artificial intelli gence and machine learning. To enhance the role of Sharia h Controllers in Takaful 
insurance companies, the regulator also issued qualification requirements for and defined the duties 
and functions of such controller in Decision No.  50 of 17  April 2019.  
4.102.   In 2019, the regulator removed the need for insurance policies for marine hull, aviation, 
satellites, balloons, spaceships, and oil to be written in Arabic.213 In 2019, the regulator further 
established  committees for the settlement and resolution of insurance  disputes. Two committees in 
Abu Dhabi and Dubai have started operating.  
4.3.1.3   Capital markets  
4.103.   Capital markets in the UAE are well developed and are open to the listing of foreign 
companies, including dual listing in the UAE and abroad. Financial markets in the onshore economy 
are regulated by the Emirates SCA. The two onshore financial markets, the Dubai Financial Market 
(DFM)214 and the Abu Dhabi Securities Exchange (ADX)215, list companies, bonds, sukuks216, and 
other financial instruments, and make up the Emirat es Securities Market. In addition, the Dubai Gold 
and Commodities Exchange (DGCX) operates in the Dubai Multi Commodities Centre (DMCC) free 
zone under SCA supervision. While the SCA approves the commodities contracts in the DGCX, the 
DFM and the ADX appro ve the listing of companies and other financial instruments. The SCA also 
licenses investment funds as well as brokers. Both can be domestically incorporated or branches of 
foreign companies as long as they conduct the same activity and are supervised by a  regulatory 
 
212 Insurance Authority Circular No.  50 "On the requirements for implementation of IFRS -17". 
213 Insurance Authority Administrative Decision No.  140 of 14  October  2019 Concerning the Exclusion of 
Some Insurance Policies from the Requirement of Being W ritten in the Arabic Language.  
214 Set up in 2000, the DFM lists equity and debt instruments as well as other financial instruments. 
Twenty per  cent of its shares are publicly listed.  
215 Set up in 2000, the ADX lists share of UAE companies, debt instruments issued by the Government 
and GREs, ETFs, and other financial instruments. It has trading locations in Abu Dhabi, Al Ain, Fujairah, 
Sharjah, and Ras Al Khaimah. The ADX is owned by one of the sovereign wealth funds in Abu Dhabi (ADQ – 
See also Section 3.3.5 ). 
216 Sukuk is an Islamic financial certificate. A major difference between conventional bonds and sukuk is 
that the structure of sukuk removes interest -based elements, which are replaced by an asset -based income 
structure.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  authority in the country of origin. The regulations for brokers also specify certain capital 
requirements and prohibit certain conflicts of interest.217 
4.104.   In addition, NASDAQ Dubai, a third stock exchange, is located in the DIFC and regulated by 
the DFSA (Section 4.4.1).  It lists a small number of companies (some of which are dual listings of 
foreign companies), two real estate investment trusts, a Bitcoin fund (a dual listing), and large 
numbers of sukuks and conventional bonds. NASDAQ Dubai is ma jority owned by majority 
state-owned Borse Dubai (directly and indirectly via DFM). With outstanding sukuk listings valued 
at USD  49 billion at the end of 2020, NASDAQ Dubai remains a major location for sukuk listing in 
the global USD  572 billion market.218 
4.105.   Between 2016 and March 2021, market capitalization of domestic listed companies increased 
from USD  213 billion to USD  333 billion, and the number of companies listed increased by 20 over 
the reporting period. Among all joint stock companies, which have to  register with the SCA, roughly 
one third were not listed on the DFM or the ADX as of 2019. These were predominantly government -
owned private joint stock companies, accounting for about the same amount of capital as those 
listed on the onshore stock exchan ges in the UAE.219 The sectoral concentration of the firms listed 
remains high in the UAE, with banks accounting for nearly a third of the total capital listed, and firms 
in real estate accounting for another quarter. The separate market for the listing of smaller 
companies, established by the ADX in 2014, saw the number of companies listed fluctuate and stand 
at seven in 2021. The number of companies listed on the NASDAQ Dubai stood at five by July 2021, 
after Dubai World delisted from the exchange in 2020.  
4.106.   In the onshore financial markets, restrictions regarding foreign ownership of shares of 
publicly listed companies are in place and vary by listed company (from 0% to 100% but 49% for 
the majority of companies).220 By company, such ownership limits are defi ned for UAE nationals, 
GCC nationals, and other nationalities, with daily data on the ownership structure provided by the 
stock exchanges. The share of free float is limited to 70% of all stocks  and for most companies only 
a minority portion of shares is t raded as of today. In 2020, foreign investors accounted for 48% and 
36% of the trading volume in the DFM and ADX, respectively. Short selling is permitted for selected 
companies. There are no foreign ownership restrictions regarding companies listed on the  NASDAQ 
Dubai.  
4.107.   Prior to their marketing in the UAE, domestic investment instruments are approved by either 
the SCA, the DFSA, or the FSRA, depending on where the instruments will be marketed. Foreign 
investment funds also require an approval from the SCA b efore they can be marketed in the 
mainland. Foreign financial institutions can market investment funds to so -called "professional 
investors"221 or retail investors in the UAE through a local promoter without establishing a local 
branch but after registering  them with the SCA.222 In 2019, the three financial regulators in the 
territory of the UAE also agreed to a common regulatory framework allowing fund managers to 
register their public or private investment funds domiciled in any of the three regulatory juri sdictions 
as "passported" funds. Fund marketers can promote these passported funds to investors in any of 
the three jurisdictions.223 The value of exchange traded funds (ETFs) traded in the DFM reached 
 
217 The SCA Board of Directors' Cha irman Decision No.  9/R.M of 2016 Concerning the Regulations as to 
Investment Funds; and the Authority's Board of Directors Decision No.  27 of 2014 Concerning Brokerage in 
Securities. Viewed at: www.sca.gov.ae .  
218 NASDA Q Dubai webpage; and Malaysia Islamic Finance Marketplace, Factsheet on 2020 Global Sukuk 
Market . Viewed at: 
http://www.mifc.com/repository/0348Factsheet %20on%202020%20sukuk%20global%20market.pdf .  
219 Securities and Commodities Authority (2020), 2019 Annual Report .  
220 Dubai Financial Markets, Foreign Ownership . Viewed at: https:/ /www.dfm.ae/issuers/listed -
securities/foreign -ownership .  
221 The concept of "professional investor" replaced and broadened the concept of "qualified investor" in 
2021 through the Chairman of the Authority's Board of Directors Decision No.  13/Chairman of 9  May 2021 on 
the Regulations Manual of the Financial Activities and Status Regularization Mechanisms. The concept of 
"qualified investor" had already earlier been broadened in 2019 as well. These cover certain institutional 
investors as well as large corpora tions and high -net-value individuals. Viewed at: 
https://www.sca.gov.ae/en/regulations/regulations -listing.aspx .  
222 Foreign financial institutions can market investment products  other than funds without registering 
them with the SCA.  
223 Marketers can promote private  funds only by way of private placement to "Qualified Investors". For 
additional details, see the passporting rules issued by the SCA. Viewed at: 
https://www.sca.gov.ae/en/regulations/circulars -and-procedures.aspx .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  AED 27.8 million between 2016 and September 2021, and AED 135.8 million at the ADX. There are 
no limits to foreign trading regarding debt instruments listed at the DFM, ADX, or NASDAQ Dubai.  
4.108.   Over the reporting period, the SCA introduced regulatory changes aime d at improving, 
inter alia, transparency and financial reporting, the protection of investors, the development of 
financial markets, and procedures for the listing of companies. For example, it introduced (in 2016) 
and amended (in 2019) governance standard s for public joint stock companies and introduced the 
requirement to use extensible business reporting language (XBRL) for financial reporting. It also 
introduced regulations regarding suspending the trading of "troubled joint stock companies" and 
their re turn to trading. The SCA also regulated fees for investment funds and set up a mechanism 
for complaints relating to financial market transactions in 2016. The SCA also amended regulations 
for issuing shares of public joint stock companies, of foreign compa nies, and joint listings.224 In 
2018, the SCA also approved the FinTech Regulatory Framework and Sandbox Guidelines for 
financial services that fall under its regulatory purview. According to the authorities, other regulatory 
changes related to the issuing of Islamic Securities (2018), regulating derivatives contracts (2018), 
anti-money laundering and counter -terrorism and illegal organizations financing (2018 -20), and 
regulations on crypto assets activities (2020).  
4.3.2   Construction services  
4.109.   Construction as a share of non -oil GDP remained broadly constant over the review period 
and stood at 11.6% in 2019 before dropping to 11.2% in 2020 (Section 1 .1). While the construction 
sector was exempted from some of the measures to slow the spread of CO VID-19225, the sector was 
nevertheless among those most impacted, together with travel, accommodation and food, and retail 
services. Major real estate projects continue to be implemented, and the total volume of active mega 
construction projects in the UAE is estimated by some market observers to exceed USD  300 
billion.226 Real estate prices in Dubai continued to decline over the review period to around 60% of 
the values during the 2014 price peak, before starting to stabilize and increase in early 2021. Simi lar 
trends have been observed in other Emirates.  
4.110.   Active mega construction projects, sometimes (further) delayed due to the pandemic, 
include commercial projects (such as Mohammed bin Rashid City or the Royal Atlantis Resort & 
Residences), infrastructure pr ojects (such as the Al Maktoum international airport or Phase 2 of the 
railway (Section 4.3.4.1)), museums (such as the Museum of the  Future), and residential properties 
(such as Jubail Island in Abu Dhabi or Aljada in Sharjah). In December 2020, Emaar Pro perties also 
announced that it would halt construction work in Dubai due to a built -up oversupply.227 A large 
share of megaprojects are funded by the Government.  
4.111.   Major construction companies operating in the UAE include domestic commercial companies, 
domest ic state -owned companies, and foreign companies that are incorporated locally.228 
Commercial presence continues to be required for a contractor to carry out construction work in the 
UAE, either through incorporation or a branch office. As part of the reform  of the Commercial 
Companies Law in 2020, foreign ownership limits to certain construction activities were eliminated, 
with full foreign ownership permitted.229 
 
224 See SCA Board Chairman's Decision No.  27 of 2017 Amending Board Chairman's Decision No.  7/R of 
2002 concerning the Regulat ion for Listing of the Shares of Foreign Companies; and Decision of the Chairman 
of the SCA Board of Directors No.  04R.M of 2018 Amending the Decision of the Chairman of the SCA Board of 
Directors No.  43R of 2008 Concerning Joint Listing.  
225 In Dubai, the c onstruction sector was designated as "vital" and could continue to operate with special 
permits and following certain health protocols, even when other offices had to close. However, the movement 
of workers across Emirates was temporarily restricted.  
226 ABiQ, Top 5 Projects in the UAE . Viewed at: https://www.abiq.io/2021/05/02/top -5-projects -in-the-
uae.  
227 Reuters  (2020) , "Dubai's Biggest Developer Emaar Halts New Construction Work, Chairman Says", 
7 December  2020.  
228 Major material providers, such as Emirates Steel, are also at times government -owned ( Emirates 
Steel is owned by Senaat, which in turn is fully owned by the sovereign wealth fund ADQ ). FitchRatings , "Fitch 
Ratings Affirms Senaat at "A"; Outlook Stable ", 1 July 2021. Viewed at: 
https://www.fitchratings.com/research/corporate -finance/fitch -ratings -affirms -senaat -at-a-outlook -stable -01-
07-2021.  
229 Formerly, foreign ownership in all companies established in the UAE (other than in free zones) was 
limited to 49% ( see Section 2 on these  reforms and which sectors no longer face these  limits).  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.112.   Firms and employees require specific licences to provide certain construction -related 
activities , and these are regulated at the emirate level. For example, Dubai Municipality accredits 
engineering staff (including architects) while the Dubai Real Estate Regulatory Agency licenses real 
estate agents or regulates rental agreements. Special licensing p rocedures exist in free zones, for 
example for interior design consultants in Dubai.230 Companies and individuals licensed in one 
Emirate cannot operate in other Emirates unless they have been licensed in those Emirates as well. 
A large number of foreign pr ofessionals related to construction services are licensed in the UAE. To 
be registered as an individual professional service provider in the UAE, residency is required.  
4.113.   As a result of the pandemic, major construction companies experienced significant decli nes 
in profits, or fell into loss in 2020. As the pandemic compounded the effects of the construction 
downturn after the financial crisis and again since 2014, Arabtec Holding, a major construction 
company valued at AED 30 billion in 2014, filed for liquid ation in December 2020231, and at least 
one other large construction company is also being restructured. Limitless, another major 
construction company, offered bond -holders a debt restructuring, the third since the financial crisis, 
in April  2021.232 In late  2020, creditors of the Al Jaber Group, another major company, started to 
enforce claims of a large (USD  1.6 billion) debt restructuring agreed in 2018 that has not yet been 
implemented.233 The margin required by banks to issue bank guarantees is also said to have 
increased to nearly 30% in 2021234, potentially indicating an increasing risk perception of 
construction projects among banks.  
4.114.   The Government in late 2020 started to consolidate the operations of various state -owned 
construction companies.  
4.115.   In 2019, Dubai established a Higher Committee of Real Estate tasked to find a sustainable 
balance between the supply and demand of the Dubai property sector and ensuring 
semi-governmental real estate companies do not compete with the private sector.235 According to 
the authorities, a strategic comprehensive plan for all mega projects in Dubai is currently being 
developed.  
4.116.   Each Emirate remains responsible for applicable building codes. Abu Dhabi applies its 
building code to all projects since 2014236, while Dubai appro ved a new building code in 2020, 
replacing the Code of Construction and Safety Practice, aiming to streamline construction -related 
rules and approval procedures.  
4.117.   Under the GATS, the UAE has made commitments for some relevant business services 
(architectura l, engineering, and urban planning and landscape architectural services), as well as 
construction and related engineering services. The horizontal limit on market access, requiring 
commercial presence through "either a representative office or an incorpora tion as a company with 
maximum foreign equity participation of 49% subject to UAE law", applies to these services as do 
horizontal limits on the movement of natural persons.237 Likewise, the UAE retained limits to the 
 
230 Dubai Creative Clusters Authority License Guidelines LG 10.2.9 on Interior Design Consultancy, 
Version 2 of 14  June 2015.  
231 Arabian Business  (2020) , "End of an Era as Dubai's Arabtec Files for Liquidation", 
17 December  2020. Viewed at: https://www.arabianbusiness.com/construction/456122 -end-of-an-era-as-
dubais -arabtec -files-for-liquidation .  
232 Parasie, N.  (2021) , "Dubai Cris is Aftershocks Felt in Developer's Third Restructuring", Bloomberg , 
26 April 2021. Viewed at: https://www.bloomberg.com/news /articles/2021 -04-26/dubai -crisis-aftershocks -felt-
in-developer -s-third-restructuring .  
233 Barbuscia, D.  (2020) , "Creditors Take Action Against UAE's Al Jabar in Decade -Long Saga", NASDAQ , 
22 September 2020. Viewed at: https://www.nasdaq.com/articles/creditors -take-action -against -uaes-al-jaber-
in-decade -long-saga-2020-09-22.  
234 Nair, M.  (2021) , "UAE Co nstruction Industry Wants Banks Not to Add to Their Cash Problems", Gulf 
News , 13 September  2021. Viewed at: https://gulfnews.com/business/property/uae -construction -industry -
wants -banks -not-to-add-to-their-cash-problems -1.1631507010243 .  
235 Burke, M.  (2019) , "Can the Higher Committee of Real Estate Control Dubai's Housing Supply?", Gulf 
Business , 7 December 2019.  
236 WTO document WT/TPR/S/338/Rev.1, 4  October  2016.  
237 As a result of the amendments to the Companies Law, full foreign ownership is permitted in 
construction -related activities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  national treatment regarding acquisitio n of land and real estate, taxation, and the provision of 
government subsidized services.238 
4.3.3   Telecommunications services  
4.3.3.1   Structure  
4.118.   The telecommunications sector is dominated by two majority state -owned companies 
sharing the market among them in varying proportions depending on the service provided 
(Table  4.7).239 The share of information and communication in nominal GDP remained broadl y 
constant around 3% between 2016 and 2019 before increasing to 3.4% in 2020. Overall revenues 
generated by the two UAE telecom companies (including from operations overseas) decreased 
slightly from AED 95 billion in 2016 to AED 93 billion in 2020, accordi ng to information provided by 
the authorities.  
4.119.   As of September 2021, the UAE had around 16.6 million active mobile subscriptions, the 
majority pre -paid, representing a mobile penetration rate of around 182%. The number of active 
subscriptions is now below the nearly 20 million at the end of 2016 and has been declining since 
reaching a high of 20.4 million in April 2018. In 2017, the operator "du" (EITC) introduced Virgin 
Mobile as a separate brand.  
Table 4.7 Telecommunications indicators, 2015 -20 
 
2015  2016  2017  2018  2019  2020  
Subscriptions (including pre -paid) per 
100 inhabitants        
 Fixed -line telephony  24.38  24.42  24.46  24.31  24.18  24.07  
 Mobile telephony  193.7  212.6  209.0  208.5  200.6  185.8  
 Internet (Fixed only)  13.3 13.9 29.1 31.4 31.2 32.8 
 Broadband (Fixed + Mobile)  148.7  177.1  270.3  281.4  271.1  257.1  
Number of active providers       
 
 Fixed -line 2 2 2 2 2 2 
 Mobile  2 2 2 2 2 2 
 Internet  2 2 2 2 2 2 
Market share of top provider  59%  57%  59%  59%  63%  65%  
 Fixed -line 86% 85% 84% 84% 84% 83% 
 Mobile  54% 52% 54% 55% 59% 62% 
 Internet  85% 84% 82% 83% 83% 82% 
Source:  Information provided by the authorities.  
4.120.   According to the International Telecommunication Union (ITU), prices for 
telecommunications services were very competitive in 2020 (Tables 4.8 and 4.9).  The UAE ranked 
particularly high regarding the cost as a share of gross national income (GNI) for the low 
consumption bundle (data and  voice), as well as the mobile voice basket. Access to fixed -broadband 
services was also very competitive, according to the ITU methodology comparing the price of fixed -
broadband packages of at least 5  GB at a minimum speed of 256 kbit/s. According to comm ercially 
available data from Speedtest240, the speed of fixed -broadband Internet access in the UAE increased 
to nearly 180 Mbps in June 2021, ranking among the 20 fastest available speeds globally.  
4.121.   The Government considers the development of an efficient an d advanced 
telecommunications sector important for economic development, and telecom services play an 
important role in the national digital transformation agenda.241 An efficient telecommunications 
 
238 WTO document GATS/SC/121, 2  April 1996.  
239 The Emirates Telecommunications Corporation (trading as Etisalat) is the former incumbent and 60% 
state-owned and 40% owned by public shareholders. Emirates Integrated Technology Company (trading as 
"du") is nearly 80% owned directly and indirectly by three UAE Sovereign Wealth Funds with the rest owned by 
public shareholders.  
240 Speedtest (2021), Speedtest Global Index . Viewed at: https://www.speedtest.net/global -index .  
241 Reflected in the UAE Digital Government Strategy 2025 and the UAE Strategy for Government 
Services 2025. UAE Government Portal, National Digital Transformation Committee . Viewed at: 
https://u.ae/en/about -the-uae/digital -uae/national -digital -transformation -committee . WT/TPR/S/ 423 • United Arab Emirates  
 
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  services sector is also closely linked to the Strategy for  Artificial Intelligence and the Fourth Industrial 
Revolution (4IR) Strategy and its role in digital technologies and the Internet of Things (IoT).  
Table 4.8 Pricing data for mobile telephony, 2020  
Type of 
basket Rank  As % 
of 
GNI 
p.c. USD PPP$  Monthly 
voice call 
allowance 
(in 
minutes)  Monthly 
SMS 
allowance  Monthly 
data 
allowance 
(in GB)  Tax rate 
included  
High 
consumption 
mobile data 
and voice 
basket  36 0.93 33.74  45.10  140 70 1.5 5.0 
Low 
consumption 
mobile data 
and voice 
basket  9 0.36 13.14  17.56  70 20 0.5 5.0 
Mobile voice 
basket  5 0.1 3.70 4.95 70 20 n.a. 5.0 
Mobile data 
basket  53 0.79 28.59  38.22  n.a. n.a. 1.5 5.0 
n.a. Not applicable.  
Source:  ITU (2020), Measuring Digital Development: ICT Price Trends 2020 . 
Table 4.9 Pricing data for fixed broadband, 2020  
Rank  as % of 
GNI p.c.  USD PPP$  Speed, in 
Mbit/s  Cap per month, 
in GB  Tax rate 
included (%)  
5 0.55 19.73  26.37  0.3 Unlimited  5.0 
Source:  ITU (2020), Measuring Digital Development: ICT Price Trends 2020 . 
4.3.3.2   Regulatory framework and changes  
4.122.   The name of the sector regulator was changed in late 2020 from the Telecommunications 
Regulatory Authority (TRA) to the Telecommunications and Digital Government Regulatory Authority 
(TDRA) to reflect its increased scope of covering digital government functions.242 The TDRA operates 
under the guidance of the UAE Cabinet, which continues to set overall policies for the sector , aiming 
to make quality telecommunications services available to consumers, and explicitly promoting the 
interest of subscribers. The TDRA regulates the sector via the licensing of service providers and 
equipment (type certification), the registration of dealers, number and spectrum management, 
interconnection regulations, consumer protection regulations and the control of quality -of-service 
standards, competition safeguards, and price controls. IoT service providers also need to obtain a 
certification. In  addition, the TDRA aims to promote the development of the telecom and IT sectors 
and manages an ICT fund providing scholarships to higher education institutions and seed capital 
funding for industry -related ventures with UAE participation or ownership. A universal access policy 
for telecommunications services is in place, aiming to ensure maximum coverage to all areas with a 
defined settlement in the UAE, according to the authorities.243 The policy foresees the TDRA 
designating one or more licensee as havin g an obligation to provide universal services in the UAE.  
4.123.   Service providers have to obtain licences prior to providing any of the regulated activities.244 
The TDRA has wide discretion regarding the number of licences it issues and can issue any such 
 
242 The Telecommunications Law (De cree No.  3 of 2003) establishes the TDRA as regulator and spells 
out key objectives. While Article  13 of the Law was not amended, according to the TDRA website, its 
responsibilities also include activities related to the development and implementation of digital government 
services. TDRA, About TDRA . Viewed at: https://tdra.gov.ae/en/About .  
243 TDRA Regulatory Policy, Promoting the Universal Provision of Telecommunications Services in the 
UAE, Version 1.0, Issued 12  December  2017.  
244 These include operating a public telecommunica tions network, the provision of telecommunications 
and services to subscribers, and other types of activities specified by the Board. According to the 2021 TDRA 
Telecommunications Licensing Framework Guide, such services include, inter alia , real-time Voic e Services 
(including chargeable Voice over Internet Protocol (VoIP) calls), SMS services such as Bulk SMS, various 
broadcasting services, broadband services, the sale of SIM or re -charge cards, machine -to-machine WT/TPR/S/ 423 • United Arab Emirates  
 
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  licence s using a competition, auction, or other method in line with the licensing framework, subject 
to applications being reviewed based on clear criteria (Resolutions 6 and 7).245 The Authority has 
issued two full -scale individual licences for telecommunications  service providers, with no limitation 
on licensed services, for a 20 -year validity. It also issued six individual Satellite Licenses, one 
individual broadcasting uplink licence, and one for public access mobile radio services. These licences 
are issued fo r a validity of 10 years, and are renewable. As activity with a "strategic impact", the 
telecommunications sector remains exempted from the changes in foreign ownership limits resulting 
from the amendments to the Commercial Companies Law in 2020.246 As a re sult, the minimum of 
51% UAE ownership for all UAE licensees continues to apply.247 According to the authorities, UAE 
licensees are not subject government tax; however, the two fixed/wireless network operators are 
subject to royalty payments to the Federal Government based on a percentage of revenues and net 
profits arising from the prov ision of regulated activities.  
4.124.   Voice over Internet Protocol (VoIP) service provision is a regulated activity in the UAE and 
operators planning to offer such services must obtain a licence.248 According to the authorities, 
selected chat and video call applic ations, such as BOTIM, HiU messenger, and Etisalat cloud, were 
already available in the UAE prior to the COVID -19 pandemic. As part of its efforts to support distance 
learning and working from home, remotely, or away from an office environment as part of t he 
precautionary measures taken against the spread of COVID -19, the TDRA allowed a number of VoIP 
and communication applications for individuals, businesses, healthcare, education services, and 
other fields to operate as of 2021 on all networks (fixed and mobile).249 According to the authorities, 
these applications remain exceptionally available until further notice.  
4.125.   Over the review period, the TDRA updated the regulatory framework for the allocation of 
spectrum and manages it in line with national frequency  plans and the Spectrum Allocation and 
Assignment Regulations.250 The TDRA allocates and re -allocates spectrum for both exclusive use 
(individual authorization) and non -exclusive use (class authorization). Individual frequency spectrum 
allocations cannot be  transferred in their entirety.  
4.126.   Since 2013, customers' identification documents are required for registering mobile SIM 
cards, and such documents have to be reregistered when renewed. While mobile number portability 
has been in place since 2013, portabilit y for fixed numbers across the UAE was launched in 2021. 
According to the authorities, the use of mobile number portability increased during the reporting 
period.  
4.127.   To safeguard competition, network operators dominant in specific service areas are subject 
to certain obligations, including providing non -discriminatory network access, the issuance of 
Reference Offers or agreements (for interconnection and network access), and price transparency.251 
Regulations ensuring access to active and passive infrastructure and interconnection of services have 
been in place for more than 10 years, and the two telecom operators signed an agreement allowing 
for bitstream access in 2015 for residential customers. The TDRA is expecting the implementation 
of bitstream access for business customers to take place in early 2022. In 2018, the TDRA updated 
its interconnection dispute resolution mechanism. Under the auspices of the TDRA, the two telecom 
operators also ente red into agreements to share passive infrastructure in 2016.  
 
connectivity services, and IoT connectivit y services. Viewed at: https://tdra.gov.ae/ -
/media/About/LICENSING/AR/Telecom -Licensing -Framework -Guide -2021.ashx .  
245 Telecommunications Regulatory A uthority Resolution No.  6 of 23  July 2008 Regarding the Licensing 
Framework; and Resolution No.  7 of 23  July 2008 Regarding the Licensing Regulations.  
246 Strategic sectors are exempted from the amended requirements of foreign ownership shares in the 
Commer cial Companies Law.  
247 In 2021, Article  7 of the Federal Law No.  1 of 24  March  1991 Concerning the Emirates 
Telecommunications Corporation was amended to allow for up to 49% foreign ownership in Etisalat.  
248 Voice over Internet Protocol Regulatory Policy – Version 2.0, 30  December  2009.  
249 According to the authorities, these applications include Microsoft Teams, Zoom, Blackboard, Cisco 
Webex, Avaya Spaces, BlueJeans, Slack, Matrx, and Google Hangout to support distance learning and remote 
working, as well as a number of applications to support hospitals and clinics and enable them to provide 
remote healthcare services.  
250 Issued by the TRDA on 19  September  2019.  
251 TRA Determination No.  4 of 28  November  2013 on Remedies for Ex Ante Regulation of the UAE 
Telecomm unications Sector.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.128.   During the review period, the TRDA updated and consolidated regulations aiming to protect 
consumers of telecommunications services, issuing new consumer protection regulations.252 
Applicable to al l telecommunications licensees, they prescribe, inter alia , transparency for prices and 
price changes, other fees, and billing. They also prescribe transparency regarding the usage of 
services by consumers (and associated costs) and prohibit misleading adv ertising. Further, they 
provide for the monitoring of performance standards, requirements for restoration of service, a 
mechanism for consumer complaints, and rights for the privacy of user information.  
4.129.   In 2017, the TDRA also updated its price control regu lation.253 Telecommunications 
operators are still required to submit Price Control Requests covering new prices they want to offer, 
including promotions, for review and approval by the TDRA. Operators also need to communicate 
the implementation of approved prices to the regulator. The regulations specify that the TDRA retains 
the authority to reject such requests when they could be considered anti -competitive, negatively 
affect the development of the telecommunications sector, or be harmful to consumer welfa re. The 
TDRA regulates roaming charges within the GCC, reflecting a GCC Decision taken in 2015. In line 
with the TDRA's Directive No.  4 of 2015, such price caps were introduced, and maximum prices were 
reduced in 2016.254 
4.3.3.3   Introduction of 5G technology  
4.130.   5G se rvices in the UAE were launched in 2018, following the initial frequency allocation to 
the two telecom operators in the 3.3  GHz-3.8 GHZ range. The TDRA issued a Strategy for 5G and 
Beyond (2020 -25), focusing on 5G deployment and coverage, as well as the de velopment of 
interconnected services, including encouraging the collaboration between telecom service providers 
with downstream and upstream economic sectors that can benefit from 5G services. According to 
the authorities, complete 5G coverage of the terri tory is envisaged by 2025.  
4.131.   In late 2020, the TDRA decided to allocate additional bands in the 24.25  GHz-27.5 GHz range 
to the development of 5G networks.255 To encourage a faster transition to the use of 5G networks, 
the TDRA announced the shutdown of 2G ne tworks by the end of 2022256, allowing operators to 
reallocate resources to the development of 5G networks.  
4.3.3.4   Other policies affecting telecommunications and postal services  
4.132.   The UAE's Cybersecurity Strategy (updated in 2019) aims to achieve a safe and resilie nt 
cyber infrastructure through designing and implementing regulations, developing capabilities of 
stakeholders, identifying and managing risks, and being able to respond to incidents. In this context, 
UAE entities identified as critical257 have to implemen t the Information Assurance Regulations issued 
in 2020 by the TDRA, while they are voluntary for other entities.  
4.133.   The Regulation on Internet Access Management regulates how prohibited content on the 
Internet is blocked by Internet service providers in a man ner that minimizes non -prohibited content 
from being affected.258 The TDRA publishes Prohibited Content Categories on its website. Federal 
 
252 Version 1.4 was issued on 20  March  2019 and version 1.5 on 4  October  2020.  
253 TRDA Regulatory Policy and Procedure of 28  June 2017 on "Price Control – Version 1.0".  
254 TDRA, "UAE TRA Directs Mobile Operators in the UAE to Reduce GCC Roam ing Rates by an Average 
of 42%", 3  April 2016. Viewed at: https://tdra.gov.ae/en/media/press -release/2016/uae -tra-directs -mobile -
operators -in-the-uae-to-reduces -gcc-roaming -rates-by-an-a. 
255 TDRA, "TRA Allocates New Frequencies for 5G Networks", 14  September  2020. Viewed at: 
https://tdra.gov.ae/en/media/press -release/2020/tra -allocates -new-frequencies -for-5g-networks . 
256 TDRA, "TRA Announces Shutdown of 2G Network (GSM) i n the UAE by the End of 2022", 
28 June 2020. Viewed at: https://tdra.gov.ae/en/media/press -release/2020/tra -announces -shutdown -of-2g-
network -gsm-in-the-uae-by-the-end-of-2022. 
257 Such entities will be identified in line with the UAE's Critical Information Infrastructure Protection 
(CIIP) Policy.  
258 TRA Regulatory Policy on Internet Access Management [v1.0] of 19  April 2017. I ts Annex spells out 
the 19 Prohibited Content Categories that include technologies to access blocked content, content supporting 
criminal and illegal activities or terrorism, insult or defamation, offences against the UAE and public order, 
infringements of  IP rights, discrimination, racism and contempt of religion, illegal communication activities, or 
content that is blocked by order from the judicial authority (local or federal) or public prosecution in the UAE.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Law No.  5 of 2012 on Combatting Cybercrimes (as amended) also foresees penalties for publishing 
or disseminating certa in information electronically.  
4.134.   IoT service providers, which require certification, have to store individuals' data primarily in 
the UAE but can also store them abroad, provided that user protection policies there exceed those 
followed in the UAE.259 
4.135.   Emirate s Post Company, a state -owned company, is the postal service provider in the UAE. 
Federal Law No.  21 of 4  September  2019 on Emirates Post Group Company converted Emirates Post 
to a public joint stock company fully owned by the Emirates Investment Authority , and abrogated 
Federal Law No.  03 of 3  April 2013 on the Establishment of the Emirates Post Group. It foresees the 
establishment of a Post Sector Regulatory Committee, but according to the website of Emirates Post, 
the company continues to license other c ourier services to provide services for the transport of 
documents, letters, and packages of all types according to Emirates Post Group Board Resolution 
No. 5 on Granting Licenses for Transfer of Documents and Sending Post of Messages and 
Packages.260 
4.3.3.5   E-commerce  
4.136.   E-commerce in the UAE increased from USD  7.5 billion in 2016 to a projected 
USD 19.8 billion in 2020.261 
4.137.   E-commerce is regulated by Federal Law No.  1 of 30  January  2006 on Electronic Commerce 
and Transactions, with Federal Law No.  15 of 10  November  2020 on Consumer Protection as well as 
other laws and regulations covering other issues important for the functioning of electronic 
commerce.262 Federal Law No.  1 of 2006 allows for the conclusion of contracts by electronic means 
and regulates for the use of electronic signatures, giving them equivalence with regular signatures 
for most contracts (including for email order confirmations).263 An electronic signature can be issued 
using a device coupled with a digital certificate to identify the holder, while bas ic electronic signature 
does not require any devices or digital certificates.264 
4.138.   The Consumer Protection Law outlines consumer rights and requires sellers to provide 
accurate product information to buyers, including an invoice detailing product specifics an d prices. 
Sellers have to guarantee that products conform to relevant standards and would be liable for 
damage resulting from using or consuming the good. Consumers have the right to return or replace 
goods when discovering a defect within a certain time. The Law also prohibits sellers from publishing 
misleading prices or charging more than advertised. The revision of the Law in 2020 extended, 
inter alia, consumer protection provisions to electronic commerce for suppliers registered in the UAE.  
4.139.   The Penal Code prohibits the use or disclosure of "secret" information without the consent 
of the person to whom the secret relates, while the Cyber Security Law regulates data security (with 
personal information considered "secret"). Federal Law No.  45 of Sep tember 2021 on Personal Data 
Protection regulates data privacy and use, but executive regulations (secondary legislation) still have 
to be drafted before the Law is expected to be applied towards the end of 2022.265 However, some 
 
259 IoT Regulatory Policy [version 1] of 22  March 2018.  
260 Resolution No.  5 of 2017 indicates that licence applicants shall be citizens of the State. Viewed at: 
https://www.epg.ae/cdn_epg/resources/docs/Resolution_N o5_Of_2017_EN.pdf . This responsibility for Emirates 
Post was outlined in Federal Law No.  3. See also Emirates Post Group, Issue Courier License . Viewed at: 
https://epg.ae/portal/_en /service.xhtml?service=service115 .   
261 Fitch Solutions data presented in Dubai Economy and Visa (2020), The United Arab Emirates (UAE) 
eCommerce Landscape 2020 , p. 12. Viewed at: 
https://ae.visamiddleeast.com/dam/VCOM/regional/cemea/unitedarabemirates/media -
kits/documents /visa_uae_ecommerce_landscape_2020_ppinion_paper_vf.pdf .  
262 Federal Law No.  15 on Consumer Protection replaced Federal Law No.  24 of 2006 on Consumer 
Protection.  
263 Electronic signatures cannot be used for administrative acts involving personal affairs and public 
documents requiring notarization.  
264 Abu Dhabi Judicial Department, E-signatures and Digital Certificates . Viewed at: 
https://www.adjd.gov.ae/en/pages/legal%20guida nce/tec -esignature.aspx . 
265 The law will be published in early 2022.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  of the Free Zones already h ave specific legislation governing data protection in place, and Federal 
Law No.  2 of 2019 on Health Data contains some provisions regarding health data.  
4.140.   Package delivery within the UAE remained relatively costly (three times the global best 
practice for s imilar delivery times) in the UAE as of 2019, while return rates of shipments were 
five times higher than the global average, according to industry observers.266 Nearly half of 
e-commerce orders were still paid using cash -on-delivery in 2018267, limiting las t-mile-delivery 
options as large international service providers frequently do not offer cash -on-delivery services. 
However, the use of electronic (pre -)payments increased during the pandemic.268 The de minimis  
threshold for small cross -border shipments to enter duty -free stands at AED 1,000 (USD  272), but 
according to the authorities is expected to change to AED 300 in the near future following the 
approval of amendments to the GCC Unified Customs Law. To support the development of 
e-commerce in line with D ubai's e -Commerce Strategy, Dubai Customs issued Customs Notice 
No. 13/2021 on 5  August  2021, exempting the trade among companies of goods via e -commerce 
channels that are valued under AED 30,000 from customs service charges.269 
4.141.   The UAE participates in the Joint Statement Initiative on e -commerce.  
4.3.4   Transport  
4.142.   During the review period, the share of the transportation and storage sector in the UAE GDP 
first increased marginally from 5.3% in 2016 to 5.8% in 2019, before it contracted to 5.1% in 2020 
as the sector  was particularly affected by the COVID -19 pandemic.270 In 2019, total compensation 
of transportation and storage workers represented 8.9% of the total wages volume271, while the 
number of workers amounted to 5.3% of the total workforce.272 
4.143.   The transportation  sector is a key component of the Government's strategy to make the UAE 
a major trading hub. The National Agenda of the Vision 2021, published in 2014, aimed for the UAE 
to be among the top countries in the world for the quality of its airports, ports, and  road 
infrastructure. In 2021, the Industrial Strategy (Operation 300bn) listed transportation as one of the 
priority industrial sectors that will be supported by the Emirates Development Bank.273 At the emirate 
level, the Dubai Silk Road Development announ ced in 2019 is meant to boost trade and enhance 
logistics connections within the UAE and between the UAE and the rest of the world274 using domestic 
companies and global transport key players DP World and Emirates Airlines.275 Transportation is 
especially im portant in Dubai, where the economy is highly reliant on services (75% of GDP in 2020), 
and where air transport exports represented 54% of the value of commercial services exports in 
2018.276 
4.144.   The maritime and land transportation sector is regulated by the M inistry of Energy and 
Infrastructure (MOEI). Under the MOEI, the Undersecretary for Infrastructure and Transportation 
Affairs is divided among Assistant Undersecretaries: one each for Regulation of Infrastructure and 
Transport, Federal Infrastructure Proje cts, and Federal Infrastructure Assets.277 The Federal 
 
266 Bain and Company (2019), E-commerce in MENA: Opportunity Beyond the Hype . 
267 Bain and Company (2019), E-commerce in MENA: Opportunity Beyond the Hype . 
268 Dubai Economy and Visa (2020), The United Arab Emirates (UAE) eCommerce Landscape 2020 . 
269 Prior registration is required.  
270 See Chart 1.1 for the distribution of the GDP per sectors.  
271 UAE Ministry of Economy, The Annual Economic Report 2020 , p. 79. Viewed at: 
https://www.moec.gov.ae/documents/20121/302471/English+Version+_MOE_Annual+Report.pdf/e89802b5 -
b321-126f-ccae-62c2103cac5b?t=16297 12516757 .  
272 Federal Competitiveness and Statistics Centre, Statistics by Subject: Labor Force . Viewed at: 
https://bit.ly/3CxN6zX .  
273 UAE Government Portal, Operation 300bn, the UAE's Industrial Strategy . Viewed at: 
https://u.ae/en/about -the-uae/strategies -initiatives -and-awards/federal -governments -strategies -and-
plans/the -uae-industrial -strategy . 
274 Oxford Business Group, Dubai Silk Road Strategy to Capitalise on Logistics Infrastructure and Global 
Connections . 
275 Emirates News Agency  (2020) , "Dubai Customs launches transit trade guide to keep up with 
progress of Dubai Silk Road Strategy", 16  July 2020.  
276 Government of Dubai, Economic Bulletin , June 2020, p.  6. Viewed at: 
https://ded.ae/DubaiEconomicBulletin /june_2020/documents/Economic_bulletin_2020_03_en.pdf . 
277 MOEI, Organizational Chart . Viewed at: https://www.moei.gov.ae/en/about -ministry/organizational -
chart.aspx . WT/TPR/S/ 423 • United Arab Emirates  
 
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  Transport Authority was merged into the MOEI in 2020. The Ministry coordinates Emirates' policies 
and regulates transportation between the Emirates and from/to the rest of the world. In parallel, 
each E mirate has an independent infrastructure and a transport services authority that governs 
transportation within its own borders.278 The federal General Civil Aviation Authority and the local 
emirate authorities regulate aviation. In Abu Dhabi, the Department  of Municipalities and Transport 
was established by Law No.  30 of 2019 and is responsible for the management of urban planning 
and transportation networks in land, air, and sea in the Emirate, to fulfil the vision of the 
Government.279 In Dubai, land and ma ritime services and air services are under the supervision of 
different authorities. The Dubai Roads and Transport Authority and the Port, Customs and Free Zone 
Corporation regulate land and maritime transport, while the Dubai Civil Aviation Authority (DCA A) 
and Dubai Airports regulate air transport in the Emirate.  
4.145.   The UAE has not included any transport sector in its 1994 Schedule of GATS Commitments, 
notified in 1996.280 
4.3.4.1   Air transport  
4.146.   As during the last Review, all activities related to civil aviation at th e federal level in the UAE 
are managed by the General Civil Aviation Authority (GCAA), which is an autonomous body.281 The 
General Civil Aviation Authority Law (Federal Cabinet Decree Law No.  4 of 1996) was issued on 
1 January 1996. Under the Law, the GCAA was established and mandated as the authority for the 
execution of the Civil Aviation Law of 1991 in the UAE. The GCAA is responsible for ensuring safety 
and security of the aviation sector through the development and enforcement of regulations, and 
for pr oviding navigation services, registration, and licensing services for the UAE air transport 
industry. Additionally, the GCAA proposes general air transport policy guidelines and relevant 
legislation to the Council of Ministers, negotiates and administers b ilateral and multilateral air 
services agreements (ASAs), and enforces international agreements and conventions. Carriers 
wishing to conduct commercial air transport in the UAE must obtain an Air Operator Certificate from 
the GCAA.  
4.147.   At the emirate level, civil aviation authorities (CAAs) are involved in the ASA process, 
representing the interests of their stakeholders in each Emirate through participation in preparatory 
meetings, work committees, and exchanges of views with the GCAA, and securing tr affic rights for 
all UAE national airlines. These CAAs are also directly responsible for operational matters at their 
respective airports. At the emirate level, authorities apply the policies and directions of the GCAA. 
In Dubai, the DCAA is responsible fo r, inter alia , defining the general policy for civil aviation in the 
Emirate in line with federal legislation, carrying out activities related to the management of civil 
aviation operations in line with federal legislation, following up the implementation of bilateral and 
multilateral agreements regulating air transport services in the Emirate, and applying environmental 
protection policies in line with federal and local environmental policies.282 
4.148.   The UAE has concluded 183 bilateral ASAs283, compared with 158  at the time of its last 
Review. They include 115 open skies agreements, compared to 88 during the last Review, which are 
totally unrestricted with all traffic rights fully available to designated airlines (3rd, 4th, and 
5th freedoms) and 6 7 other ASAs  (70% are restricted and mostly open 3rd and 4th freedoms284) 
(Table  A4.1). Based on the traffic rights specified in the respective ASAs, airlines decide their own 
capacity (frequency and aircraft type), subject to approval by the authorities. Provisions on  landing 
rights are negotiated by the Federal Government and contained in the relevant ASA. Based on the 
ASA provisions, the local emirate authorities will distribute the slots available to airlines in 
collaboration with the airports. The slots are attribu ted on a yearly basis.285 
 
278 Information provided by the authorities.  
279 Department of Municipalities and Transport, Who We Are . Viewed at: 
https://www.dmt.gov.ae/About -Us/About -DMT. 
280 WTO document GATS/SC/121, 2  April 1996.  
281 Inform ation provided by the authorities.  
282 Dubai Civil Aviation Authority, Our Roles & Responsibilities . Viewed at: 
https://www.dcaa.gov.ae/about/our -roles-responsibilities . 
283 According to the authorities, more than 150 among them have already come into force as of 2021.  
284 Definitions of the different air freedom can be viewed on the International Civil Aviation 
Organiz ation's (ICAO) website: https://www.icao.int/pages/freedomsair.aspx .  
285 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.149.   As during the previous Review, cabotage operations of cargo and passengers are restricted 
to national airlines. Foreign companies may provide certain services, including freighter and charter 
passenger services; maintenance, repair , and overhaul (MRO); aircraft leasing; and parts 
manufacturing.  
4.150.   Six airlines are established in the UAE. To establish an airline, companies must obtain an 
approval from the Cabinet and from the relevant emirate authority. Emirates Airlines and Etihad 
Airways are both among the top 25 airlines worldwide in numbers of passengers carried 
internationally in 2020 (4th and 21st worldwide, respectively) and top 25 for the tonnes of freight 
carried internationally (3rd and 25th).286 Emirates Airlines is thus a majo r international player in air 
transportation. It was established by Law No.  2 of 1985 of the Emirate of Dubai and is a wholly 
owned subsidiary of the Government of Dubai through the Investment Corporation of Dubai. While 
observers of the aviation sector ha ve considered the efficiency of a merger between the two airlines 
to avoid competition, in 2020 Emirates denied claims that such a merger would occur. In addition 
to these large airlines, the UAE has several low -cost airlines: Air Arabia (based in Sharjah)  and 
flydubai. During the period under review, two other low -cost airlines were inaugurated in late 2019 
and 2020: Wizz Air Abu Dhabi (joint venture between Emirati SWF ADQ and Hungarian Wizz Air 
Holdings) and Air Arabia Abu Dhabi (joint venture between Ai r Arabia and Etihad Airways). The 
authorities indicate that the four low -cost airlines were not competing against each other. Four UAE 
airlines (flydubai, Emirates, Air Arabia, and Etihad Airways) are members of the International Air 
Transport Association (IATA).287 
4.151.   The air transportation sector was heavily affected by the COVID -19 pandemic. Emirates 
Airlines reported a loss of USD  5.5 billion during FY  March 2020 -March 2021, compared with a profit 
of AED 288 million the previous year.288 Emirates benefited f rom a capital injection of USD  3.1 billion 
by the Government of Dubai to maintain its operations despite the COVID -19 pandemic. The 
authorities indicate that none of the airlines benefited from loan guarantees from the Government 
to mitigate the COVID -19 crisis. Etihad Airways, which is wholly owned by the Government of 
Abu Dhabi, indicated in its mid -2021 statement that it witnessed a progressive recovery across its 
businesses despite a slower than expected return to global air travel. It still recorded a loss of 
USD 0.4 billion in the first half of 2021; however, it was half of the loss of the same period in 2020.289 
Prior to the pandemic, the company had already been facing some difficulties with four consecutive 
years of losses. Finally, Air Arabia genera ted USD  12 million in profits during the first six months of 
2021, compared to a loss of USD  46 million during the same period in 2020290, and flydubai recorded 
a loss of USD  194 million in 2020.291 
4.152.   In June 2015, Emirates Airlines published a detailed docume nt responding to claims that it 
benefited from undue subsidies, non -market fuel price, and government support distorting 
competition.292 In 2018, the United  States and the UAE resolved a dispute over aviation subsidies 
and Emirates and Etihad agreed to use internationally recognized accounting standards and to open 
their books to outside examination.293 
4.153.   The two main UAE airlines use travel services from US -based technology company Sabre. 
The company has long been Etihad Airways' provider of travel services (r eservations, planning, 
departure control services, etc.). The original deal signed in 2011 was agreed at USD  1 billion. Under 
the renewed agreement in 2021, Sabre services will focus on a fare optimizer, network planning, 
 
286 IATA, World Air Transport Statistics 2021 , pp. 23 and 25.  
287 IATA, Current Airlin e Members . Viewed at: https://www.iata.org/en/about/members/airline -
list/?search=united%20arab&ordering=Alphabetical . 
288 Emirates, Emirates Group Announces 2020 -21 Results . Viewed at: 
https://www.emirates.com/media -centre/emirates -group -announces -2020-21-results/ . 
289 Etihad, "Etihad Airways on Path to Recovery as Operations Grow", 10  August  2021. Viewed at: 
https://www.etihad.com/en/news/etihad -airways -on-path-to-recov ery-as-operations -grow. 
290 Air Arabia (2021), Condensed Consolidated Interim Financial Information for the Period Ended 
30 June 2021, p. 3. Viewed at: https://w ww.airarabia.com/sites/airarabia/files/gallery/AIR -ARABIA -JUNE-
2021.pdf . 
291 Flydubai, "Flydubai Announces Annual Results Amid One of the Toughest Years in Aviation History",  
2 May 2021. Viewed at: https://news.flydubai.com/flydubai -announces -annual -results -amid-one-of-the-
toughest -years -in-aviation -history . 
292 The document can be found at: https://c.ekstatic.net/ecl/documents/financial -transparency/subsidy -
myth/emirates -us-subsidy -rebuttal -ddocument.pdf . 
293 United  States Congressional Research Service, Repo rt RS21852, 28  October  2021.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  and the in -flight guest experience .294 In October 2021, Sabre reached an agreement with Emirates 
to renew the airline's distribution agreement with Sabre's linked travel agencies.295 Sabre has also 
been EmQuest's (travel technology provider division of the Emirates Group) partner for various  travel 
services, such as automated ticket refund and exchange, or analysis of customers' travel data.296 
4.154.   Dnata, which belongs to the Emirates Group and is wholly state -owned, is one of the largest 
suppliers of combined air services in the world, offering a ircraft ground handling, cargo, travel, and 
flight catering services across six continents. Established in 1959 in Dubai, the company operates in 
airports around the globe including two UAE airports (Dubai International Airport and Dubai 
Al Maktoum Interna tional Airport).297 Dnata's total revenues decreased by 62% between March  2020 
and March 2021.298 Etihad Engineering, from the Etihad Group, was in 2019 the largest commercial 
aircraft MRO services provider in the Middle East, servicing more than 350 aircraf ts.299 
4.155.   The Air Navigation Service Provider (ANSP) based in Abu Dhabi is responsible for the airspace 
traffic management and the provision of safe and efficient air navigation services to UAE airspace 
users.300 Air navigation services are provided in Dubai's Jebel Ali airport, as well as in other UAE 
airports, by Dubai Navigation Services, which offers air traffic management services, air traffic 
engineering services (e.g. preventive and corrective maintenance of critical communication, 
navigation, and surveil lance systems), and a coordination unit for civil and military users.301 In 
August 2021, UAE private company Global Air Navigation Services (GANS) signed a partnership with 
Abu Dhabi Airports to provide air navigation services, including take -off, landing, taxiing of aircrafts, 
and aerodrome control services in the Emirate's five airports.302 At the time of writing, air navigations 
services were not opened to foreign ownership.303 
4.156.   The UAE launched the Air Traffic Management (ATM) Strategic Plan for 2015 -2030 with the 
aim of articulating air navigation strategies that are aligned with the ICAO M iddle East Region 
priorities. The plan should ensure that the country maintains an ATM system that is safe, can 
accommodate demand, is globally interoperable, is environmentally sustainable, and satisfies 
national interests. To this end, the National Airsp ace Advisory Committee will recommend initiatives 
to provide a high -quality service to airspace users and air navigation service providers.304 
4.157.   Scheduled international passenger services are operated out of four Emirates – Abu Dhabi, 
Dubai, Sharjah, and Ras Al Khaimah – each of which has local government authorities regulating 
applicable civil aviation matters. Airports in Abu Dhabi, Dubai, and Sharjah are all run by their own 
local emirate -owned airport authority companies, while Ras Al Khaimah International  Airport is run 
by the Department of Civil Aviation under the Government of Ras Al Khaimah.305 
 
294 Sabre, "Etihad Airways Signs Revolutionary Billion Dollar Technology Deal with Sabre Airline 
Solutions". Viewed at: https://www.sabre.com/insights/releases/etihad -airways -signs-revolutionary -billion -
dollar -technology -deal-with-sabre -airline -solutions/ ; and "Etihad and Sabre Announce Long -Term Partnership 
with Key Technology Ren ewals", 16  September  2021. Viewed at: 
https://www.sabre.com/insights/releases/etihad -and-sabre -announce -long-term-partners hip-with-key-
technology -renewals/ .  
295 Emirates, "Emirates and Sabre Reach New Distribution Agreement", 5  October  2021. Viewed at: 
https://www.emirates.com/media -centre/emirates -and-sabre -reach -new-distribution -agreement/ . 
296 EmQuest, Sabre Solutions . Viewed at: https://www.emquest.ae/solutions/sabre -solutions/ . 
297 Dnata, Ground Handling in the UAE . Viewed at: https://www.dnata.com/en/global -network/united -
arab-emirates . 
298 Emirates, Emirates Group Announces 2020 -21. 
299 Etihad, "Etihad Engineering Records Robust Growth as It Welcomes 2020", 23  February  2020. 
Viewed at: https://www.etihadengineering.com/media/news/2020/etihad -engineering -aviation -MRO-growth -
2019-2020.html . 
300 GCAA, Air Navigation Services . Viewed at: 
https://www.gcaa.gov.ae/en/departments/ans/pages/airnavigationservices.aspx . 
301 Dans, What We Do . Viewed at: http://dans.gov.ae/What -We-Do/Why -Choose -Dans. 
302 Emirates Ne ws Agency  (2021) , "Abu Dhabi Airports Partners with GANS to Provide Air Navigation 
Services", 9  August  2021.  
303 Information provided by the authorities.  
304 ICAO document AN -Conf/13 -WP/261, 27  September  2018.  
305 Information provided by the authorities.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.158.   Nine civil airports are located in the UAE, five of which are in the Emirate of Abu Dhabi.306 
All airports are government -owned and not open to foreign ownership.307 In 2019, Dubai 
International Airport (DXB) was the 4th busiest airport in the world in terms of total passenger traffic, 
and it was the only UAE airport in the top 20. It topped the ranking for international passenger 
traffic, and ranked 7th in total air  cargo traffic.308 The impact of the pandemic drastically remodelled 
the rankings, and while DXB maintained its 1st position for international traffic in 2020, it exited the 
top 10 for total passengers and cargo traffic.309 The Dubai Al Maktoum International  Airport (DWC) 
opened in 2010 and its construction phase is still underway, with the authorities' ultimate goal being 
to build the world's largest airport. The airport should be five times the size of Dubai International 
Airport.310 It is, however, still la rgely behind Dubai International Airport in terms of passenger 
movements (1.5 million in 2019 and 0.43 million in 2020 at DWC compared to 86 million in 2019 
and 25.8 million in 2020 for DXB).311 
4.159.   Abu Dhabi International Airport, established in 1982, is the s econd -largest airport in the 
UAE, with 28% passenger growth between 2013 and 2019. Prior to the pandemic, top country 
destinations for its flights were India, the Kingdom of Saudi Arabia, and the United Kingdom 
(August  2018-July 2019).312 The new Midfield T erminal Complex, which was launched in 2021, is 
designed to handle more than 8,500 passengers per hour and tens of millions a year.313 
4.160.   The Sharjah International Airport, the UAE's oldest airport, handled 13.6 million passengers 
in 2019 (up 13% from 2018) an d has a cargo handling capacity of 500,000 tonnes annually.314 
Despite the pandemic, the Sharjah Airport Authority increased its workforce, emphasizing the 
recruitment of locals in the context of the Government's Emiratisation strategy.315 In 2020, the 
airport became the first airport in the GCC to obtain the global accreditation certificate in the 
management of carbon emissions for airports by the Airports Council International.316 
4.161.   The 2019 agenda of the Emirate of Dubai included the Plan for Reducing the Env ironmental 
Impacts of the Aviation Sector agreed upon by all relevant stakeholders such as Dubai airports, air 
carriers, aviation infrastructure developers, ground handlers, and navigation services providers. The 
Plan developed a smart platform to collect data on aviation environmental impact, such as carbon 
emissions, noise, and air quality.317 Since 2016, the UAE has been a member of the ICAO's 
Committee on Aviation Environmental Protection, which assists the ICAO Council in formulating 
policies and adopti ng standards and recommended practices related to aviation's environmental 
impact.318 
 
306 UAE Government Portal, Civil Airports . Viewed at: https://u.ae/en/information -and-
services/infrastructure/civic -facilities/civil -airports . 
307 Information p rovided by the authorities.  
308 Airports Council International, "ACI Reveals Top 20 Airports for Passenger Traffic, Cargo, and Aircraft 
Movements", 19  May 2020. Viewed at: https://aci.aero/news/2020/05/19/aci -reveals -top-20-airports -for-
passenger -traffic -cargo -and-aircraft -movements/ . 
309 Airports Council International, "ACI World Data Reveals COVID -19's Impact on World's Busiest 
Airports", 22  April 2021. Viewed at: https://aci.aero/news/2021/04/22/aci -world -data-reveals -covid-19s-
impact -on-worlds -busiest -airports/ . 
310 Government of Dubai, Al Maktoum International  (DWC) . Viewed at: https://daep.gov.ae/our -
airports/al -maktoum -international -dwc/. 
311 Government of Dubai, Passengers' Movements at Dubai Airports (2020 -18). Viewed at: 
https://www.dsc.gov.ae/Report/DSC_SYB_2020_11%20_%2003.pdf . 
312 JCDecaux, Abu Dhabi International Airport . Viewed at: https://www.jcdecauxme.com/abu -
dhabi/abu -dhabi -international -airport . 
313 Emirates News Agency  (2019) , "Full -Scale Operational Trials Conducted at Midfield Terminal 
Complex", 21  July 2019.  
314 U.S. International Trade Administration, United Arab Emi rates – Country Commercial Guide: 
Aviation , 9 December  2020. Viewed at: https://www.trade.gov/country -commercial -guides/united -arab-
emirates -aviation . 
315 Emirates News Agency  (2021) , "Sharjah Airport Authority Reviews 2020 Achievements, Future 
Plans", 8  March  2021.  
316 Sharjah Airport, "During the Annual Management Meeting Sharjah Airport Authority Reviews the 
Achievements of 2020 and Its Future Plans", 8  March  2021.  Viewed at: https://bit.ly/2Y5YSmA . 
317 Dubai Civil Aviation Authority, Services . Viewed at: https://www.dcaa.gov.ae/ . 
318 ICAO, Committee on Aviation Environmental Protection (CAEP) . Viewed at: 
https://www.icao.int/environmental -protection/pages/caep.aspx .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.3.4.2   Maritime transport  
4.162.   The UAE has more than 1,300  km of coastline, and thus the maritime transport sector is a 
key component of the country's economy and trade. Maritime tran sport is governed by Federal Law 
No. 26 of 1981 as amended in 1988 (UAE Maritime Code). The Code governs and regulates all 
maritime practices in the UAE. The Maritime Transport Affairs Department, represented by the MOEI, 
is the regulatory authority. As su ch, the MOEI is responsible for, inter alia , registration, licensing, 
and regulation of all national and foreign marine units operating in the UAE's waters; crew issues 
and maritime insurance; safe operation of vessels; pilotage and towage; and marine acci dents 
salvage. The Law is applicable to all of the Emirates and is based on maritime principles set out in 
international conventions. The MOEI also manages the ship registry and seafarers licensing, issues 
navigational licences, monitors compliance with in ternational standards, and levies fees. 
Furthermore, the MOEI is in charge of all security, seaworthiness, and communications aspects of 
marine navigation. Additionally, several relevant ministerial decrees or local laws regulate crewing, 
classification of  vessels, restrictions with regards to activities undertaken by foreign flag vessels, 
and other port activities.  
4.163.   In addition to the MOEI, each Emirate possesses a port and maritime services regulation 
authority. The overarching authority for Abu Dhabi is t he Department of Transport; in Dubai, the 
Port, Customs and Free Zone Corporation; in Ajman, the Department of Ports and Customs; and in 
Sharjah, the Sharjah Free Zone Ecosystem. The Dubai Maritime City Authority, under the Port, 
Customs and Free Zone Corp oration, was established in 2007 to monitor, develop, and promote 
maritime activities and establish world -class regulations for maritime industry. Its services include, 
inter alia , the issuance and renewing of marine driving licences, marine craft registra tion and 
licensing, vessel anchorage permits, and ship -to-ship hydrocarbon cargo permits.319 Dubai and 
Abu Dhabi are to date the sole Emirates to have a special arbitration mechanism to resolve shipping 
disputes, the Emirates Maritime Arbitration Centre, wh ich started to operate in 2017.320 
4.164.   During the review period, the Government launched the National Strategy for Regulating the 
Maritime Sector. The objective of the Strategy is to increase the cooperation amongst federal and 
local entities and develop a long-term plan (2021 -41) for the growth of the maritime sector. The 
Strategy will identify organizational and financing gaps, as well as priorities for the development of 
maritime clusters, in order to improve the maritime sector's competitiveness.321 The G overnment 
also launched the National Maritime Navigation System based on geographical information systems 
and maritime data provided by the UAE and international partners to improve security, 
environmental, and customs information.322 At the emirate level, Dubai unveiled in 2014 its Dubai 
Maritime Vision 2030 to consolidate its potential as a maritime hub, thanks to modern infrastructure 
and services, and integrate the highest standards of sustainability.  
4.165.   Following the 2020 amendment of the Commercial Companies Law (Section  2.4), maritime  
transport services became open to 100% foreign ownership. However, permitted activities may differ 
depending on the Emirates, which set their own local ownership requireme nts.323 The authorities 
indicate that registering a vessel in the UAE under a UAE flag still requires that the vessel be at least 
51% owned by a UAE national or a company with its management based in the UAE. Foreign flag 
vessels must have a contract with o ne of the federal or local governments to operate in UAE waters 
and may not carry out cabotage on their own account. Crews working on ships servicing the 
territorial waters must have residency visas. Foreign companies must obtain approval from the MOEI 
in the form of a licence. The UAE has the world's 21st largest fleet dead -weight tonnage capacity on 
a total of 970 vessels, among which 88% are foreign flagged.324 Since 2018, the MOEI has required 
 
319 DMCA, Service Catalog . Viewed at: https://eservices.dmca.ae/en/service -
list?Page=4&PageSize=6&IsIndividual=False&IsCorporate=False&IsOnline=False&IsOffline=False&sort=1&sort i
ngType=0 .  
320 Information provided by the authorities.  
321 Information provided by the authorities.  
322 Ministry of Cabinet Affairs, "UAE Government Launches 5 Initiatives to Develop the Transport 
Sector", 26  November  2018. Viewed at: https://www.moca.gov.ae/en/media/news/uae -government -launches -
5-initiatives -to-develop -the-transport -sector . 
323 The respective lists for Abu Dhabi and Dubai can be downloaded at: https://u.ae/en/information -
and-services/business/full -foreign -ownership -of-commercial -companies .  
324 UNCTAD (2020), Revie w of Maritime Transport 2020 , p. 41.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  that all ships operating in UAE waters or under the UAE flag carrying more than 200 gross tonnes 
have a financial security system to protect seafarers from injury, abandonment, or death.  
4.166.   The UAE has several commercial trading ports as well as oil ports. Over 60% of cargo 
destined for the GCC countries arrives in a U AE seaport.325 In 2019, 7,082 container ships arrived 
in the UAE, spending a median time of 0.94 day (world median of 0.69). Its maximum cargo -carrying 
capacity of vessels was of 21,200 TEU326, close to Belgium's world highest of 23,756 TEU.327 
4.167.   According to Q 3 2021 UNCTAD's Liner Shipping Connectivity Index (LSCI), which aims to 
capture countries' levels of integration into the existing liner shipping by measuring liner shipping 
connectivity, the UAE ranks 16th worldwide (almost unchanged from its ranking in Q 1 2016 (14th) at 
the time of the previous Review). The LSCI is generated from six components: (i)  number of 
scheduled ship calls per week in the country; (ii)  deployed annual capacity in TEU offered at the 
country; (iii)  number of regular liner shipping se rvices from and to the country; (iv) number of liner 
shipping companies that provide services from and to the country; (v)  average size in TEU of the 
ships deployed by the scheduled service with the largest average vessel size; and (vi) number of 
other cou ntries that are connected to the country through direct liner shipping services.328 
4.168.   All UAE ports are owned by local emirate governments or government -owned companies. 
DP World, wholly government -owned, is responsible for the management and operations of Du bai's 
ports. Created in 1972 as a local port operator in Port Rashid (Dubai), DP World expanded to 
operating ports and terminals, maritime services, and other logistics services around the world. In 
2020, its revenues totalled USD  8.5 billion (maritime and  logistics revenues up by 33%).329 
Abu Dhabi Ports company operates the Khalifa Port in Abu Dhabi. Launched as a port operator in 
2006, it is now the owner and operator of 11 ports and terminals both in the UAE and in Guinea.330 
Its portfolio contains ports,  industrial zones, and logistics supply chains wholly owned by Abu Dhabi's 
ADQ; it is expected to be listed on the Abu Dhabi Securities Exchange in 2021, with AQD remaining 
the majority shareholder. Despite the COVID -19 pandemic, Abu Dhabi Ports' revenues grew by 24% 
to AED 3.4 billion.331 Several terminals of Sharjah ports are operated by the UAE -based private 
company Gulftainer. Foreign -owned operators can operate ports or terminals in the UAE under a 
concession agreement.332 
4.169.   The Jebel Ali Port in Dubai, th e largest in terms of trade volume in the UAE, is the sole 
Middle  East and North Africa (MENA) country port to reach the top 30 busiest ports. However, its 
trade volume decreased every year during the review period, from 15.36 million TEU in 2016 to 
13.48  million  TEU in 2020. It is operated by DP  World. More than 80% of Dubai's exports volume 
exit from the Jebel Ali Port, and it receives 71% of the Emirate's imports volume.333 The Port is a 
key feature of the Emirate's economy, as the maritime trade sector a ccounts for 7% of Dubai's GDP 
(AED 27 billion in 2019). Dubai's seaborne trade amounted to AED  421 billion in 2020, down from 
AED 502 billion pre -pandemic (2019).334 
4.170.   The first semi -automated port in the MENA region, the Khalifa Port owed by Abu Dhabi Ports 
is located in Abu Dhabi and started its commercial activities in 2012. It now offers a direct link to 
70 international destinations and is planned to be the first UAE port to be connected to the new 
 
325 UAE Government Portal, Seaports . Viewed at: https://u.ae/en/information -and-
services/infrastructure/civic -facilities/se aports . 
326 Twenty -foot Equivalent Unit, unit of measurement used to determine the capacity of container ships 
and terminals.  
327 UNCTAD (2020), Review of Maritime Transport 2020 , p. 71.Viewed at: 
https://unctad.org/system/files/official -document/rmt2020_en.pdf .  
328 UNCTAD STAT, Line Shipping Connectivity Index, Quarterly . Viewed at: 
https://unc tadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=92 .  
329 DP World, "DP World Announces Resilient Financial Revenues for 2020", 18  March  2021. Viewed at: 
https://www.dpworld.com/news/releases/dp -world -announces -resilient -financial -results -for-2020/ . 
330 Emirates News Agency  (2021) , "Fujairah CP Opens AED 1 Bn Fujairah Terminals Transformation", 
6 June 2021.  
331 Emirates News Agency  (2021) , "ADQ Intends to List Abu Dhabi Ports on Abu Dhabi Securities 
Exchange", 7  September  2021.  
332 Information provided by the authorities.  
333 Information provided by the authorities.  
334 Dubai Customs, Trade Statistics 2019 . Viewed at: 
https://www.dubaicustoms.gov.ae/en/TradeStatistics/Pages/TradeStatistics2019.aspx .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Etihad Rail network.335 An expansion plan announced in 201 9 was still underway as of late 2021, 
with the objective of increasing FDI and non -oil growth for the Emirate.336 Two concessions were 
awarded to construct and operate new terminals by foreign companies, namely China Ocean 
Shipping Company (COSCO) and the M editerranean Shipping Company (MSC). According to 
UNCTAD's 2020 Review of Maritime Transport, major shipping companies such as COSCO and MSC 
are moving some of their activities from Jebel Ali towards Khalifa Port.337 In 2019, Khalifa Port 
received the first  fully-laden Capesize vessel (largest class of bulk ship) to ever call at a GCC port, 
which was importing bauxite from Guinea. The Port is the first in the Gulf to handle such large and 
fully loaded ships. These recent expansions to manage some of the larg est ships in the world aim to 
open new trade opportunities.338 
4.171.   Fujairah Port is among the top three largest bunkering hubs in the world. Total crude oil and 
products handled at the Port exceeded 120 million tonnes in 2020, compared to around 
110 million  tonnes the previous year.339 Fujairah Terminals, wholly owned by Abu Dhabi Ports, 
launched an extension programme during the review period to increase its general cargo throughput 
to 1.3  million  tonnes over a total of 110,000 m2 of container terminal area. Fuj airah Port is a key 
component of the Fujairah Strategic Plan 2040, which intends to make the Emirate a hub for trade 
between the GCC and neighbouring regions.340 It is with Sharjah's port Khorfakkan  the only major 
port located on the UAE's eastern coast, which does not require boats to cross the Strait of Hormuz, 
and is close to the Indian Ocean shipping routes. Traffic at these two eastern ports should benefit 
from Package D of the UAE national rail way construction's second phase, which will connect Fujairah 
Port and Khorfakkan Port to the rest of the network. The tender for this project was awarded in late 
2019 to a joint venture of the UAE firm National Projects and Construction and Chinese Railway  
Construction Corporation.341 
4.172.   The main ports in Sharjah are Port Khalid, Hamriyah Port, and Khorfakkan  Port. Together, 
they contribute to 20% of the Emirate's GDP, supporting more than 3,000 jobs.342 Port Khalid hosts 
the Sharjah container terminal, and Khorfakkan Port also has its own container terminal. The latter 
is by far the most significant of the Emi rate of Sharjah with a total capacity of 5 million TEU.343 
4.173.   Table 4.10  presents the different handling capacities of selected UAE ports and their plans 
to increase such capacity.  
Table 4.10 Selected UAE ports TE U capacity  
Ports  Annual throughput in TEU million  TEU total 
capacity  Plans to increase TEU 
capacity  
Jebel Ali Port  13.5 22.4 [none]  
Khalifa Port  2.8 5 9 by 2025  
Khorfakkan Port  2  5 [none]  
Fujairah Port  0.52 0.72 1 by 2030  
Source:  Emirates News Agency  (2019) , "Abu Dhabi Ports Announces AED4 Billion Expansion Projects at 
Khalifa Port", 11  December  2019; Lloyd's List Intelligence, Throughput 2018 and 2019 for Khalifa 
Port and Khorfakkan Port. Abu Dhabi Ports, Fujairah Terminals . Viewed at: 
https://www.adports.ae/core -business/ports -terminals/ports/fujairah -terminals/ ; and information 
(Jebel Ali and Fujairah Ports' capacities) provided by the authorities.  
 
335 UAE Government Portal, Seaports . Viewed at: https://u.ae/en/information -and-
services/infrastructure/civic -facilities/seaports   
336 Emirates News Agency  (2020) , "Abu Dhabi Ports Announces Expansion of Khalifa Port Is on Track", 
12 September  2020.  
337 UNCTAD (2020 ), Review of Maritime Transport 2020 , p. 18. 
338 Emirates News Agency  (2019) , "EGA, Abu Dhabi Ports Welcome Largest Bulk Cargo Ship to Ever Call 
at Khalifa Port", 24  June 2019.  
339 Saadi, D. and Carpenter C. (2021), "Port of Fujairah Expecting Record Throughp ut for Liquid Bulk", 
S&P Global , 28 September. Viewed at: https://cutt.ly/UETonU0 . 
340 Emirates News Agency  (2021) , "Fujairah CP Opens AED 1 Bn Fujairah Terminals Transformation, 
6 June 2021.  
341 Etihad Rail, "Etihad Ra il Awards AED 4.6 Billion Contract for Package D Linking Fujairah and 
Khorfakkan Ports to the National Railway Network", 18  December  2019. Viewed at: 
https://www.etihadrail.ae/etihad -rail-awards -aed-4-6-billion -contract -for-package -d-linking -fujairah -and-
khorfakkan -ports-to-the-national -railway -network/ . 
342 Sharjah Ports, Who We Are . Viewed  at: https://sharjahports.gov.ae/who -we-are/. 
343 Gulftainer, Khorfakkan Container Terminal . Viewed at: 
https://www.gulftainer.com/terminals/uae/khorfakkan -container -terminal/ . WT/TPR/S/ 423 • United Arab Emirates  
 
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  4.3.4.3   Land transport  
4.174.   Land transport is regulated at the federal and emirate levels. Federal railways (i.e. railways 
crossing emirate/international boundaries) are regulated under Federal Law No.  8 of 2020.344 The 
provisions of the Law apply to entities working on the development and maintenance of federal 
railways, federal railway operators, and users.  
4.175.   At the federal level, Federal Law No.  9 of 2011 regulates inter -emirate and international road 
freight and passenger transport. The MOEI grants licences for operator s transporting goods or 
passengers between Emirates or internationally. Licensing is available only to UAE nationals. 
Foreigners can operate transport with the country in which they are registered, but cannot provide 
cabotage operations or pick up loads th at will go to a third country unless by virtue of a special 
permit.345 At the emirate level, operators for goods or passenger transport are licensed at the local 
level by the emirate authority.346 Local transport authorities in each Emirate may define permis sible 
routes, timing, and other restrictions related to vehicle type or to the nature of the goods. Passenger 
road transport is subject to set fare regimes for both taxi and transit services regulated at the 
emirate level.347 Some Emirates have localized he avy goods vehicle (HGV) tolls in place, and the 
authorities indicate that a unified approach to HGV tolling is being considered by the Federal 
Government.  
4.176.   Etihad Rail is for now the sole developer and operator of federal railways within the UAE, as 
per Federal Law No.  2 of 2009, and the authorities indicate that they did not envision a change. The 
authorities plan to establish mutual recognition of operators licences among the GCC countries, but 
this is yet to be approved by the Cabinet.348 Etihad Rail's mission is to provide a safe and efficient 
network to connect the seven Emirates to the neighbouring GCC countries. The second stage of the 
Etihad national rail network construction, which is ongoing, should lead to an annual capacity of over 
50 million to nnes of goods at completion compared to a capacity of 7 million tonnes after the 
completion of the first stage.349 It is divided into four projects (A, B, C, and D) that cover different 
areas of the territory, extending over 1,200  km.350 The projects are est imated to cost a total of 
USD 11 billion.351 
4.3.5   Medical services  
4.177.   One of the National Agenda 2021's six targets is to establish a world -class healthcare 
system352 and, in their efforts to develop the medical services sector, the authorities encourage 
innovation in the sector353 and have undertaken a number of reforms over the review period. These 
aim in part at attracting foreign investment, establishing the UAE as a medical hub in the region, 
and supporting medical tourism. While the total amount of federal budget allocated to the healthcare 
sector increased from AED  3.8 billion in 2016 to AED 4.8 billion in 2020, the allocation declined as a 
share of the total fede ral budget.354 
4.178.   Human health and social work activities accounted for 1.7% of GDP in 2020, nearly tripling 
its share since 2010. The majority of hospitals and healthcare facilities are private, but there are 
major public providers, and these operate the larg est hospitals. In Abu Dhabi, government -run 
Abu Dhabi Health Services Company (SEHA) and Mubadala Healthcare (owned by a state -owned 
 
344 An English version of the Federal Law No.  8 of 2020 is available at: 
https://lexmena.com/law/en_fed~2020 -05-28_00008_2020 -08-22/. 
345 Federal Law No.  9 of 2011, Article  17. 
346 Information provided by the authorities.  
347 Information provided by the authorities.  
348 Information provided by the authorities.  
349 Etihad Rail, Project Update . Viewed at: https://www.etihadrail.ae/project -update/ . 
350 Emirates News Agency  (2021 ), "Etihad Rail Completes Construction Works of 'Package A of Stage 
Two of UAE National Railway Network'", 29  September  2021.  
351 Carvalho, S. (2018), "UAE's Rail Project Back on Track with Financing Sealed", Reuters , 
27 November  2018.  
352 UAE Vision 2021, National Agenda 2021 . Viewed at: https://www.vision2021.ae/en/national -agenda -
2021.  
353 MOHAP, Innovation Health Strategy . Viewed at: https://mohap.gov.ae/en/about -us/innovation -
health -strategy .   
354 UAE Government Portal, Healthcare Budget . Viewed at: https://u.ae/en/information -and-
services/health -and-fitness/healthcare -budget .  WT/TPR/S/ 423 • United Arab Emirates  
 
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  investment company) jointly accounted for 53% of hospital beds in 2017355, while in Dubai, 
healthcare facilities operated by  the Dubai Health Authority and the Ministry of Health accounted for 
37% of available beds in 2019.356 Many private healthcare service providers are part of international 
firms and often collaborate with state -owned providers.357 
4.179.   Both Abu Dhabi and Dubai hav e established medical tourism online portals.358 Medical 
tourism proceeds in the UAE were estimated at AED 12.1 billion in 2018, according to a study by the 
Dubai Chamber of Commerce and Industry.359 According to data provided by the authorities, the 
number of medical tourists increased from nearly 300,000 in 2015 to around 350,000 in 2019. The 
UAE has not undertaken any specific GATS commitments in the area of health and social services.  
4.180.   The Federal Ministry of Health and Prevention (MOHAP) determines policy  and regulates the 
sector jointly with relevant health authorities.360 Where they exist, such emirate -level authorities 
accredit and license medical professionals in line with emirate -level procedures that broadly follow 
unified qualification requirements a t the federal level.361 They also accredit and license medical 
facilities according to Law No.  4 of 2015 on Private Health Facilities. MOHAP, other health authorities, 
and private companies owned by SWFs also own and operate public hospitals.  
4.181.   Free Zones foc using on healthcare services have been established in Dubai and Sharjah, and 
they fall under federal laws and regulations. In the Dubai Healthcare City, day -to-day regulation was 
undertaken by the Dubai Healthcare City Authority – Regulatory during most of  the review period, 
but shifted to the Dubai Health Authority in late 2021362, while activity in the Sharjah Healthcare 
City is regulated by the Sharjah Health Authority.  
4.182.   Most emirate citizens are covered by health insurance schemes funded by the Federal 
Government but implemented at the emirate level. While all citizens are covered free of charge in 
Abu Dhabi, Dubai, and Sharjah (since January 2020), only government employees are covered in 
Ajman.363 According to the authorities, a federal law for health ins urance is being prepared. Medical 
insurance for citizens covers a broad range of services accessible in a defined set of healthcare 
establishments.364 Health insurance is mandatory for expatriates in the Emirates of Abu Dhabi and 
Dubai, with minimum mandato ry coverage under policies for expats somewhat more limited 
compared to the plans for citizens.  
4.183.   During the review period, the authorities adopted Cabinet Resolution No.  29 of 15  April 2020 
on the Executive Resolution of Federal Law No.  4 of 2015 on Private  Health Facilities. The Resolution 
establishes the terms for operating a private health facility and outlines types of activities, 
requirements, and validities for licences. Owners of private health facilities in the mainland economy 
must be UAE nationals except where such facilities are large (more than 50 beds), centres of rare 
specialization, or where facilities are attached to other foreign establishments such as schools or 
construction sites (Article  6). Licenses cannot be transferred without explicit approval by the 
regulator. Existing facilities are required to regularize their status within 12 months. Following the 
revisions to the Commercial Companies Law, emirate authorities are determining lists of activities 
where full foreign ownership is permit ted, and there are differences, for example, between Abu 
 
355 Abu Dhabi Department of Health (2018), Abu Dhabi Health Statistics 2017 . Viewed at: 
https://www.doh.gov.ae/ -/media/Feature/Resources/AbuDhabiHealthStatistics.ashx .  
356 Dubai Health Authority, Annual Health Statistics Book 2019 . Viewed at: 
https://www.dha.gov.ae/DHAOpenData/Annual%20Statistical%20Books/DHADoc404326583 -05-11-2020.pdf .  
357 For a more detailed overview, see US -UAE Business Counc il, Sector Updates – The UAE Healthcare 
Sector , June 2021. Viewed at: http://usuaebusiness.org/wp -content/uploads/2019/01/2021 -U.A.E. -
Healthcare -Report.pd f.  
358 See Abu Dhabi Department of Health and Department of Culture and Tourism, Medical Tourism . 
Viewed at: https://www.health.abudhabi.ae/en/ ; and Government of Dubai, Dubai Health Experience . Viewed 
at: https://dxh.ae/en -US/about .  
359 Emirates News Agency  (2021) , "UAE, A Global Destination for Medical Tourism", 30  January  2021.  
360 Abu Dhabi, Dubai (including specific regulatory authority for the Dubai Healthcare Ci ty), and Sharjah 
have established specific health authorities.  
361 These are spelled out in Ministry of Health (UAE), Department of Health (Abu Dhabi), Dubai Health 
Authority (2017), Unified Healthcare Professional Qualification Requirements , Second Version.  
362 Dubai Law No.  14 of 12  July 2021 Amending Law No.  6 of 2018 Concerning the Dubai Health 
Authority.  
363 UAE Government Portal, Health Insurance for UAE Nationals . Viewed at: https://u.ae/en/information -
and-services/health -and-fitness/health -insurance#health -insurance -for-uae-nationals .  
364 Eligible service providers vary for each of the insurance programs available in various E mirates.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Dhabi and Dubai in terms of how healthcare -related activities are classified in these lists. The use of 
healthcare data is regulated in Federal Law No.  2 of 2019 on Health Data ( Section 4.3.3.4).  
4.184.   The authorities also adopted Federal Law No.  5 of 30  April 2019 on the Regulation of the 
Practice of the Human Medicine Profession to increase the quality of health services provided and 
reduce illegal and malpractice. It replaces Federal Law No.  7 of 1975 an d requires all health 
professionals to be licensed but also permits foreign practitioners that are licensed abroad to practice 
under certain conditions (Article  11). The authorities also adopted Federal Law No . 8 of 
19 December  2019 on Medical Products, th e Profession of Pharmacy, and Pharmaceutical Facilities, 
regulating, inter alia , the marketing, production, and circulation of medical products, as well as the 
pharmacy profession and pharmaceutical facilities. It replaced Federal Law No.  4 of 1983 and Fed eral 
Law No.  20 of 1995. Federal Law No.  13 of 10  November  2020 on Public Health aims to establish a 
comprehensive system to ensure public health.  
4.185.   In response to the COVID -19 pandemic, MOHAP launched an international telemedicine 
service, allowing patients  and doctors to access a second opinion, initially planned to be undertaken 
via the Visiting Consultants Program. Likewise, authorities in Dubai also extended access to the 
Doctor for Every Citizen programme, allowing for free consultation via voice and vi deo calls around 
the clock, to COVID -positive expatriate patients in early 2020, broadening access to expatriates 
further in 2020 and 2021.365 According to the authorities, laws regarding medical liability also 
regulate and permit the use of telehealth in t he UAE. Telemedicine constituted 10% of the total 
outpatient consultations of the Abu Dhabi Health Services Company, the largest healthcare network 
in the UAE during the pandemic.366 
 
 
365 UAE Government Portal, Telemedicine . Viewed at: https://u.ae/en/information -and-services/health -
and-fitness/telemedicine . 
366 Emirates News Agency  (2021) , "SEHA's Virtual Outpatient Consultations Exceed 500,000", 
6 September  2021.  WT/TPR/S/ 423 • United Arab Emirates  
 
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  5  APPENDIX TABLES  
Table A1. 1 Non-oil merchandise exports including re -exports by HS section and major 
HS chapter and subheading, 2016 -20 
HS section/chapter/subheading  2016  2017  2018  2019  2020  
Total non -oil exports (USD billion)  151.7  158.3  173.6  187.5  168.3  
(% of total exports)  
01 Live animals and products  0.5 0.5 0.9 1.0 0.8 
02 Vegetable products  1.4 1.2 1.5 1.5 1.8 
03 Fats and oils  0.2 0.2 0.2 0.2 0.4 
04 Prepared food, beverages and tobacco  5.0 5.3 4.6 4.4 5.1 
 HS 24 Tobacco  2.8 3.2 2.6 2.5 2.6 
05 Mineral products  3.5 3.8 3.3 6.8 4.7 
06 Chemicals and products thereof  4.0 3.6 4.6 4.6 5.2 
07 Plastics and rubber  5.0 4.1 4.0 4.1 5.0 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.2 0.2 0.2 0.3 0.2 
09 Wood, cork, straw  0.2 0.1 0.2 0.2 0.1 
10 Pulp of wood; paper and paperboard  1.2 0.9 1.0 0.9 1.4 
11 Textiles and textile articles  3.2 2.9 2.6 2.5 2.2 
12 Footwear, headgear, etc.  0.6 0.6 0.6 0.6 0.5 
13 Articles of stone, plaster, cement  0.9 0.8 0.9 0.7 0.7 
14 Precious stones and metals, pearls  30.6 29.4 26.4 25.5 26.7 
 HS 71 Natural or cultured pearls, precious or semi - 
 precious stones, precious metals  30.6 29.4 26.4 25.5 26.7 
 HS 7108 Gold unwrought or in semi -manufactured 
 forms, or in powder form  12.7 10.5 9.1 10.2 .. 
15 Base metals and articles thereof  7.8 7.9 9.5 8.9 8.3 
16 Machinery, electrical equipment  24.1 25.1 25.9 26.2 26.8 
 HS 85 Electrical machineries and parts thereof  13.4 14.9 15.7 16.3 17.0 
 HS 84 Machinery and mechanical appliances; parts 
 thereof  10.7 10.2 10.1 9.9 9.8 
17 Transport equipment  8.5 10.3 10.4 8.3 7.4 
 HS 87 Vehicles and parts and accessories thereof  6.8 7.8 7.4 6.5 6.0 
 HS 88 Aircraft, spacecraft, and parts thereof  1.4 2.0 2.4 1.6 1.1 
18 Precision instruments  1.8 1.9 1.8 1.8 1.6 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  1.1 1.0 1.0 0.9 1.0 
21 Works of art, collectors' pieces and antiques  0.1 0.1 0.4 0.5 0.1 
Other  0.1 0.1 0.0 0.0 0.0 
.. Not available.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Table A1. 2 Non-oil merchandise domestic exports by HS section and major HS chapter 
and subheading, 2016 -20 
HS section/chapter/subheading  2016  2017  2018  2019  2020  
Total non -oil domestic exports (USD billion)  51.7 49.3 56.1 63.0 69.3  
(% of total exports)  
01 Live animals and products  0.9 0.8 1.6 1.3 1.0 
02 Vegetable products  0.8 0.8 1.2 1.2 1.3 
03 Fats and oils  0.5 0.4 0.6 0.7 0.9 
04 Prepared food, beverages and tobacco  8.4 10.3 9.6 9.4 8.9 
 HS 24 Tobacco  4.5 5.8 5.6 5.8 4.8 
05 Mineral products  4.6 4.5 5.2 9.3 5.1 
06 Chemicals and products thereof  3.2 3.1 4.8 4.8 4.2 
07 Plastics and rubber  10.4 8.4 7.7 7.5 8.2 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.0 0.0 0.0 0.0 0.0 
09 Wood, cork, straw  0.1 0.1 0.1 0.2 0.1 
10 Pulp of wood; paper and paperboard  3.0 2.3 2.3 1.9 2.0 
11 Textiles and textile articles  1.2 1.1 1.3 1.1 0.9 
12 Footwear, headgear, etc.  0.0 0.0 0.0 0.0 0.0 
13 Articles of stone, plaster, cement  1.6 1.5 1.8 1.5 1.1 
14 Precious stones and metals, pearls  39.3 38.0 31.0 32.9 43.9 
 HS 71 Natural or cultured pearls, precious or semi - 
 precious stones, precious metals  39.3 38.0 31.0 32.9 43.9 
 HS 7108 Gold unwrought or in semi -
 manufactured forms, or in powder form  28.9 28.4 25.7 29.0 .. 
15 Base metals and articles thereof  17.9 21.1 24.0 21.0 16.6 
 HS 76 Aluminium and articles thereof  9.8 12.4 11.1 8.6 6.2 
 HS 73 Articles of iron or steel  2.3 2.7 3.6 3.7 3.3 
 HS 74 Copper and articles thereof  2.9 3.5 5.3 4.2 2.9 
16 Machinery, electrical equipment  5.2 4.3 5.4 5.3 4.2 
 HS 84 Machinery and mechanical appliances; parts 
 thereof  3.3 2.2 3.0 3.2 2.5 
 HS 85 Electrical machineries and parts thereof  1.9 2.1 2.4 2.1 1.7 
17 Transport equipment  2.0 2.4 2.5 1.1 0.9 
18 Precision instruments  0.2 0.2 0.2 0.2 0.2 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  0.4 0.5 0.6 0.5 0.5 
21 Works of art, collectors' pieces and antiques  0.0 0.1 0.1 0.0 0.0 
Other  0.1 0.2 0.0 0.0 0.0 
.. Not available.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
  WT/TPR/S/ 423 • United Arab Emirates  
 
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  Table A1. 3 Merchandise imports by HS section and major HS chapter and subheading, 
2016 -20 
HS Section/chapter/subheading  2016  2017  2018  2019  2020  
Total imports (USD billion)  260.4  257.7  244.7  249.1  213.8   
(% of total)  
01 Live animals and products  1.5 1.7 1.8 1.9 2.0 
02 Vegetable products  3.2 2.6 2.5 2.5 3.0 
03 Fats and oils  0.2 0.2 0.2 0.2 0.2 
04 Prepared food, beverages and tobacco  3.1 3.2 2.8 2.6 2.9 
05 Mineral products  4.1 4.1 6.9 7.2 5.6 
06 Chemicals and products thereof  5.9 5.6 6.0 6.3 6.3 
07 Plastics and rubber  2.5 2.6 2.7 2.6 2.7 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.5 0.5 0.6 0.5 0.4 
09 Wood, cork, straw  0.5 0.5 0.5 0.4 0.4 
10 Pulp of wood; paper and paperboard  0.7 0.7 0.8 0.8 0.8 
11 Textiles and textile articles  3.3 3.1 2.9 2.8 2.8 
12 Footwear, headgear, etc.  0.9 0.8 0.8 0.9 0.7 
13 Articles of stone, plaster, cement  0.9 0.9 0.8 0.8 0.8 
14 Precious stones and metals, pearls  22.1 21.2 22.1 23.5 24.5 
 HS 71 Natural or cultured pearls, precious or semi - 
 precious stones, precious metals  22.1 21.2 22.1 23.5 24.5 
 HS 7108 Gold unwrought or in semi -manufactured 
 forms, or in powder form  12.9 12.8 11.3 12.9 .. 
15 Base metals and articles thereof  6.0 5.8 7.0 6.0 6.1 
16 Machinery, electrical equipment  27.3 30.0 25.7 26.0 28.2 
 HS 85 Electrical machinery and equipment and parts 
 thereof  15.1 17.9 14.0 14.7 15.5 
 HS 84 Machinery and mechanical appliances, parts 
 thereof  12.2 12.1 11.7 11.3 12.7 
17 Transport equipment  13.2 12.1 11.5 9.9 8.2 
 HS 87 Vehicles and parts and accessories  7.8 8.5 8.4 7.7 7.1 
18 Precision instruments  2.2 2.1 2.2 2.4 2.4 
19 Arms and ammunition  0.0 0.1 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  1.7 1.7 1.6 1.6 1.6 
21 Works of art, collectors' pieces and antiques  0.1 0.2 0.5 0.8 0.2 
Other  0.0 0.0 0.0 0.0 0.0 
.. Not available.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
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  Table A1. 4 Non-oil merchandise exports (incl. re -exports) by destination, 2016 -20 
  2016  2017  2018  2019  2020  
Total non -oil exports (USD billion)  151.7  158.3  173.6  187.5  168.3   
(% of total)  
Americas  4.0 5.4 4.2 4.1 3.9 
 United  States  3.4 4.7 3.6 3.4 3.2 
 Other America  0.6 0.7 0.6 0.7 0.7 
Europe  17.5 15.3 17.5 16.9 18.6 
 EU-27 7.5 6.9 7.3 5.9 7.7 
 Italy 0.9 0.7 0.5 0.6 3.2 
 Belgium  3.1 2.5 2.6 1.6 1.4 
 Netherlands  1.1 1.1 1.2 1.0 1.0 
 EFTA 5.5 2.4 5.4 7.3 5.9 
 Switzerland  5.5 2.3 5.4 7.3 5.9 
 Other Europe  4.4 6.0 4.7 3.7 5.0 
 Turkey  2.3 3.6 2.5 2.0 3.5 
 United Kingdom  2.0 2.2 2.1 1.4 1.3 
CISa 1.4 1.6 2.2 1.9 1.8 
Africa  10.1 10.3 11.4 11.3 11.7 
 Egypt  1.8 1.7 2.1 2.0 2.3 
 Kenya  0.8 1.2 0.9 1.2 0.9 
Middle East  38.5 40.1 41.8 39.3 38.2 
 Saudi Arabia, Kingdom of  8.7 9.3 12.5 12.8 13.0 
 Iraq 6.1 7.7 6.5 7.3 7.8 
 Oman  4.1 4.8 5.9 5.8 5.8 
 Kuwait, State of  3.3 3.2 4.8 4.6 4.2 
 Iran, Islamic Republic of  8.6 9.6 5.9 3.8 2.7 
 Bahrain, Kingdom of  1.6 1.5 2.5 1.9 1.8 
 Jordan  0.9 0.9 1.3 1.3 1.0 
Asia 25.4 26.9 22.9 26.6 25.8 
 China  2.8 3.2 2.9 5.0 4.8 
 Japan  0.8 1.1 0.6 1.1 0.8 
 Other Asia  21.8 22.6 19.4 20.5 20.2 
 India 8.8 9.2 7.4 7.8 6.8 
 Hong Kong, China  3.3 3.4 3.6 3.0 4.6 
 Pakistan  1.6 1.6 1.4 1.9 2.1 
 Singapore  1.9 1.5 1.2 1.4 1.1 
 Afghanistan  1.4 1.6 1.1 0.9 1.0 
Other  3.2 0.3 0.0 0.0 0.1 
Memo:       
EU-28 9.5 9.2 9.4 7.3 9.0 
GCC 20.8 20.0 25.8 25.0 24.7 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.g ov.ae/en . 
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  Table A1. 5 Non-oil domestic merchandise exports by destination, 2016 -20 
  2016  2017  2018  2019  2020  
Total non -oil exports (USD billion)  51.7 49.3 56.1 63.0 69.3  
(% of total)  
Americas  4.1 5.2 4.8 4.0 3.3 
 United  States  3.5 4.4 3.9 3.2 2.5 
 Other America  0.7 0.8 0.9 0.9 0.9 
Europe  22.9 18.3 16.7 18.2 29.7 
 EU-27 6.0 5.8 6.3 4.2 9.7 
 Italy 1.3 1.2 0.9 0.7 7.2 
 EFTA 11.4 2.2 3.9 9.1 11.5 
 Switzerland  11.3 2.0 3.9 9.0 11.5 
 Other Europe  5.4 10.3 6.5 4.9 8.5 
 Turkey  4.5 9.1 5.2 3.8 7.2 
 United Kingdom  0.9 1.0 1.1 0.9 1.1 
CISa 0.8 1.1 1.3 1.2 0.7 
Africa  9.6 10.2 10.2 10.7 9.9 
 Egypt  1.7 1.5 1.9 1.6 1.6 
 Somalia  0.6 0.6 0.8 1.1 1.2 
 Kenya  0.8 0.9 0.7 1.3 0.9 
 Libya 0.7 0.7 0.7 0.7 0.9 
Middle East  29.5 32.4 41.1 34.6 25.5 
 Saudi Arabia, Kingdom of  6.4 8.3 15.3 13.4 10.0 
 Oman  5.6 7.5 8.4 7.0 4.8 
 Iraq 5.0 4.7 4.4 4.0 3.0 
 Kuwait, State of  3.0 3.5 5.1 4.3 2.9 
 Bahrain, Kingdom of  1.7 2.2 3.2 2.2 1.4 
 Jordan  1.0 1.2 1.3 1.0 0.8 
Asia 31.0 32.7 25.9 31.2 30.9 
 China  3.2 3.1 2.5 3.6 3.8 
 Japan  1.3 1.6 1.4 1.9 1.3 
 Other Asia  26.5 28.0 22.0 25.8 25.7 
 India 9.5 10.6 8.7 10.4 7.8 
 Hong Kong, China  1.5 1.2 1.0 1.4 6.7 
 Pakistan  1.9 1.7 1.4 1.5 2.2 
 Malaysia  0.9 1.0 1.0 1.1 1.5 
 Singapore  4.0 3.0 1.8 2.3 1.2 
 Bangladesh  1.0 1.1 1.3 1.4 1.1 
Other  2.1 0.1 0.0 0.0 0.0 
Memo:       
EU-28 6.9 6.9 7.5 5.1 10.8 
GCC 19.8 22.8 32.0 26.8 19.2 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
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  Table A1. 6 Merchandise imports by origin, 2016 -20 
  2016  2017  2018  2019  2020  
Total imports (USD billion)  260.4  257.7  244.7  249.1  213.8  
  (% of total)  
Americas  13.2 12.5 12.4 12.2 12.1 
 United  States  9.7 9 8.6 8 7.7 
 Other America  3.5 3.5 3.8 4.1 4.4 
 Brazil  1 1.1 1 1.1 1.1 
Europe  23.9 23.9 23.3 21.6 20.3 
 EU-27 17.1 15.9 16 15.2 14.3 
 Germany  5.7 4.6 4.5 4 3.4 
 Italy 2.6 2.6 2.7 2.6 2.6 
 France  2.5 2.4 2.7 2.7 2.2 
 Belgium  1.5 1.5 1.3 1.1 1.1 
 EFTA 2 2.2 2.5 1.8 1.5 
 Switzerland  1.9 2 2.4 1.7 1.4 
 Other Europe  4.8 5.8 4.8 4.6 4.4 
 United Kingdom  2.6 2.6 3.1 2.9 2.7 
 Turkey  2 3 1.4 1.4 1.4 
CISa 0.6 0.8 1 1.4 1.2 
 Russian Federation  0.6 0.7 0.9 1.1 0.9 
Africa  8.8 8.9 9.8 11.6 16.9 
 Guinea  0.4 1.1 0.9 1 3.2 
 South  Africa  0.6 0.9 1.2 1.1 1.7 
 Egypt  0.8 0.8 0.8 0.9 1.5 
 Mali 0.6 0.2 0.5 1.3 1.4 
Middle East  7.1 6.9 8.9 7.7 6.9 
 Saudi Arabia, Kingdom of  2.4 2.7 3.1 2.7 3 
 Bahrain, Kingdom of  0.7 0.9 1.3 1.7 1.2 
Asia 44.7 47 44.5 45.5 42.6 
 China  16.2 18.7 15.5 16.4 18.4 
 Japan  5.1 5.4 5.6 5.1 4.4 
 Other Asia  23.4 22.8 23.3 24.1 19.8 
 India 8.7 7.9 9.4 10.7 7.7 
 Viet Nam 3.1 3.8 3.1 2.9 2.7 
 Korea, Republic of  3 3.1 2.3 1.5 1.9 
 Thailand  1.5 1.5 1.4 1.4 1.4 
 Malaysia  1.4 0.9 1.2 1.1 1 
Other  1.7 0 0 0 0 
Memo:            
EU-28 19.7 18.5 19.1 18.1 17 
GCC 5.3 5.3 6.3 6.2 5.6 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities; and Federal 
Competitiveness and Statistics Centre, UAE Stat. Viewed at: https://uaestat.fcsc.gov.ae/en . 
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  Table A3. 1 Tariff line s where applied rate exceeds bound tariff rate  
HS code  Description  2021 applied 
tariffa Bound tariff  
17049080  White chocolate containing alcohol  50 15 
18063110  Chocolate and other preparations containing cocoa, 
in blocks, slabs or bars in filled, containing alcohol  50 15 
18063210  Chocolate and other preparations containing cocoa, 
in blocks, slabs or bars in not filled, containing 
alcohol  50 15 
20082010  Pineapples, prepared or preserved, containing added 
alcohol  50 15 
20083010  Citrus fruit, prepared or preserved, containing added 
alcohol  50 15 
20084010  Pears, prepared or preserved, containing added 
alcohol  50 15 
20085010  Apricots, prepared or preserved, containing added 
alcohol  50 15 
20086010  Cherries, prepared or preserved, containing added 
alcohol  50 15 
20087010  Peaches, including nectarines, prepared or 
preserved, containing added alcohol  50 15 
20088010  Strawberries, including nectarines, prepared or 
preserved, containing added alcohol  50 15 
20089310  Cranberries "Vaccinium macrocarpon, Vaccinium 
oxycoccos, Vaccinium vitis -idaea", prepared or 
preserved, containing added spirit  50 15 
20089710  Mixtures, prepared or preserved, containing added 
spirit 50 15 
20089910  Other fruit and other edible parts of plants, prepared 
or preserved, containing added spirit  50 15 
23070010  Wine lees  50 15  
Electronic smoking devices and tools (e.g. cigar ettes, 
"shisha", pipe and the like):    
85437031   Electronic cigarettes  100 15 
85437032   Electronic water pipe "shisha"  100 15 
85437033   Electrically heated devices for cigarettes  100 15 
85437039   Other  100 15  
Parts of electrical machines and apparatus:    
85439091   For electronic cigarettes other than accumulators 
 of heading 85.07  100 15 
85439092   For electronic water pipe "shisha" other than 
 accumulators of heading 85.07  100 15 
85439093   For electrically heated devices for cigarettes other 
 than accumulators of heading 85.07  100 15 
85439098   For other smoking electronic devices  100 15 
a "Special goods". Duties are indicated by the authorities.  
Source:  WTO calculations, based on data provided by the authorities and CTS database.  
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  Table A4. 1 List of open skies and other ASA arrangements  
 
Open skies agreements  Other agreements  
1 Afghanistan  Algeria  
2 Albania  Argentina  
3 Antigua and Barbuda  Armenia  
4 Aruba  Australia  
5 Azerbaijan  Austria  
6 Bahamas  Bahrain, Kingdom of  
7 Barbados  Bangladesh  
8 Belize  Belarus  
9 Benin  Belgium  
10 Bhutan  Brazil  
11 Bosnia and Herzegovina  Bulgaria  
12 Botswana  Canada  
13 Brunei  China  
14 Burkina Faso  Colombia  
15 Burundi  Congo, Democratic Republic of  
16 Cambodia  Cote D'Ivoire  
17 Cameroon  Croatia  
18 Cape Verde  Cuba 
19 Central African Republic  Egypt  
20 Chad France  
21 Chile Hong Kong, China  
22 Comoros  Hungary  
23 Congo -Rep. of the Congo  India 
24 Costa Rica Indonesia  
25 Curacao  Iraq 
26 Cyprus  Ireland  
27 Czech  Republic  Italy  
28 Denmark  Japan  
29 Djibouti  Jordan  
30 Dominican  Republic  Kazakhstan  
31 Ecuador  Kenya  
32 El Salvador  Korea, Republic of  
33 Eritrea  Kuwait, State of  
34 Estonia  Libya 
35 Finland  Macao, China  
36 Gabon  Madagascar  
37 Ghana  Malta  
38 Gambia  Mexico  
39 Georgia  Moldova, Republic of  
40 Germany  Mongolia  
41 Greece  Montenegro  
42 Grenada  Morocco  
43 Guatemala  Mozambique  
44 Guinea -Rep. of Guinea -Bissau  Nepal  
45 Guinea -Rep. of Guinea -Conakry  Netherlands  
46 Guinea -Equatorial Guinea  Nigeria  
47 Guyana  Pakistan  
48 Haiti Philippines  
49 Honduras  Poland  
50 Iceland  Portugal  
51 Jamaica  Qatar  
52 Kiribati  Romania  
53 Kosovoa Russian  Federation  
54 Kyrgyz  Republic  Saudi Arabia, Kingdom of  WT/TPR/S/ 423 • United Arab Emirates  
 
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Open skies agreements  Other agreements  
55 Lao, People's Democratic Republic  Seychelles  
56 Latvia  South  Africa  
57 Lebanon  Spain  
58 Lesotho  Sri Lanka  
59 Liberia  Switzerland  
60 Lithuania  Syrian Arab Republic  
61 Luxembourg  Tanzania  
62 Macedonia  Tunisia  
63 Micronesia  Turkey  
64 Malawi  United Kingdom  
65 Malaysia  Ukraine  
66 Maldives  Venezuela, Bolivarian Republic of  
67 Mali Viet Nam  
68 Mauritania   
69 Marshall Islands    
70 Myanmar    
71 Namibia    
72 New Zealand    
73 Nicaragua    
74 Niger    
75 North Korea    
76 Norway    
77 Oman    
78 Panama    
79 Paraguay    
80 Peru   
81 Rwanda    
82 Saint Lucia    
83 Saint Kitts and Nevis    
84 Saint Vincent and the Grenadines    
85 Samoa    
86 Sao Tome and Principe    
87 Sint Maarten    
88 Senegal    
89 Serbia    
90 Sierra  Leone    
91 Singapore    
92 Slovak  Republic    
93 Slovenia    
94 Solomon Islands    
95 Somalia    
96 South Sudan    
97 Sudan    
98 Suriname    
99 Swaziland    
100 Sweden    
101 Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu (Chinese Taipei)    
102 Thailand    
103 Timor -Leste    
104 Togo   
105 Tonga   
106 Turkmenistan    
107 Tuvalu    
108 Uganda    
109 United States    WT/TPR/S/ 423 • United Arab Emirates  
 
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Open skies agreements  Other agreements  
110 Uruguay    
111 Uzbekistan    
112 Vanuatu    
113 Yemen    
114 Zambia    
115 Zimbabwe    
  115 67 
a All references to Kosovo in this report should be understood to be in the context of United Nations 
Security Council Resolution 1244 (1999).  
Source:  Information provided by the authorities.  
 
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