RESTRICTED  
  
WT/TPR/S/338  
27 April 2016  
(16-2331)  Page: 1/108  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
UNITED ARAB EMIRATES  
This report, prepared for the third Trade Policy Review of the United Arab Emirates, has been 
drawn up by the WTO Secretariat on its own responsi bility. 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 practices.  Any technical questions arising from this report may be addressed to Mr. John Finn 
(tel: 022 739 5081), Mr. Usman Ali Khilji (tel.: 022 739 6936), and Mr. Samer Seif El Yazal 
(tel.: 022 739 5459).  
Document WT/TPR/G/338 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/338 • United Arab Emirates 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Fisca l Policy ........................................................................................................... .. 12 
1.2   Monetary and Exchange Policy .................................................................................... 12 
1.3   Balance of Payments ................................................................................................. 13 
1.4   Developments in Trade .............................................................................................. 14 
1.4.1   Composit ion of trade .............................................................................................. 14 
1.4.2   Direction of trade ................................................................................................... 17 
1.5   Foreign Dire ct Invest ment ......................................................................................... 17 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 20  
2.1   Genera l Framework .................................................................................................. 20 
2.2   Trade Poli cy Objectives ............................................................................................. 21 
2.3   Trade Agreements and Arrangements .......................................................................... 23 
2.3.1   WTO ................................................................................................................... . 23 
2.3.2   Regional and pr eferential agreements ....................................................................... 25 
2.3.2.1   Cooperation Council for the Arab States of the Gulf .................................................. 25 
2.3.2.2   Pan-Arab Free Trad e Area Agreem ent (PAFTA) ........................................................ 26 
2.3.3   Other agreements and arrangements ........................................................................ 26 
2.3.3.1   EFTA-GCC Fr ee Trade Agreement .......................................................................... 26 
2.3.3.2   GCC-Singapore Free Trade Agreement (GSFTA) ....................................................... 27 
2.3.3.3   Ne gotiations ....................................................................................................... 27 
2.3.3.4   Other prefer ential arra ngements ........................................................................... 28 
2.4   Investme nt Regime .................................................................................................. 28 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 32  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 32 
3.1.1   Customs procedur es and requirements ..................................................................... 32 
3.1.2   Custom s valuation ................................................................................................. 34 
3.1.3   Rules of origin .......................................................................................................  35 
3.1.4   Tariffs ............................................................................................................... ... 35 
3.1.4.1   Applied MFN tariff ............................................................................................... 35 
3.1.4.2   Bo und tariffs ...................................................................................................... 38 
3.1.4.3   Preferential tariffs ............................................................................................... 38 
3.1.5   Other charge s affecting imports ............................................................................... 39 
3.1.6   Import prohibitions, restrictions, an d licensing ........................................................... 39 
3.1.7   Anti-dumping, countervai ling, and safegu ard measures ............................................... 41 
3.2   Measures Directly Affecting Exports ............................................................................. 43 
3.2.1   Export procedur es and requirements ........................................................................ 43 
3.2.2   Export taxes, charges, an d levies ............................................................................. 43 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 43 WT/TPR/S/338 • United Arab Emirates 
 
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  3.2.4   Export suppo rt and pr omotion ................................................................................. 43 
3.2.5   Export finance, insurance, gu arantees ...................................................................... 44 
3.3   Measures Affectin g Production and Trade ..................................................................... 44 
3.3.1   Standards and othe r technical requirements .............................................................. 44 
3.3.2   Sanitary and phyt osanitary requ irements .................................................................. 46 
3.3.3   State-owned enterp rises and priv atization ................................................................. 47 
3.3.4   Taxation and incentives .......................................................................................... 48 
3.3.5   Competition policy and price controls ........................................................................ 50 
3.3.5.1   Competition policy .............................................................................................. 50 
3.3.5.2   Pric e contro ls ..................................................................................................... 51 
3.3.6   Governme nt procurement ....................................................................................... 52 
3.3.7   Intellectual property rights ...................................................................................... 54 
3.3.7.1   Overview ........................................................................................................... 54 
3.3.7.2   Patents .............................................................................................................. 55 
3.3.7.3   Copyrights and related rights ................................................................................ 56 
3.3.7.4   Trademarks ........................................................................................................ 56 
3.3.7.5   Enforcement ....................................................................................................... 57 
4   TRADE POLICIES BY SECTOR ..................................................................................... 59  
4.1   Agriculture and Fisheries ........................................................................................... 59 
4.1.1   Overview ..............................................................................................................  59 
4.1.2   Trade ................................................................................................................. .. 60 
4.1.3   Policies ................................................................................................................. 62 
4.1.4   Fisheries ............................................................................................................... 63 
4.2   Industry .................................................................................................................. 66 
4.2.1   Hydroc arbon sector ................................................................................................ 66 
4.2.1.1   Regulation of the oil sector ................................................................................... 66 
4.2.1.2   Regulation of the gas sector ................................................................................. 67 
4.2.2   Non-hydrocarbon manufacturing sector ..................................................................... 67 
4.3   Services ................................................................................................................ .. 69 
4.3.1   Financial services ................................................................................................... 69 
4.3.1.1   Banking .............................................................................................................  70 
4.3.1.1.1   Struct ure ........................................................................................................ 70 
4.3.1.1.2   Regulation ....................................................................................................... 72 
4.3.1.2   Insura nce .......................................................................................................... 73 
4.3.1.2.1   Regulation ....................................................................................................... 74 
4.3.1.3   Capi tal mark ets .................................................................................................. 75 
4.3.1.3.1   Struct ure ........................................................................................................ 75 
4.3.1.3.2   Regulation ....................................................................................................... 76 
4.3.2   Cons truction ......................................................................................................... 77 
4.3.2.1   Overview ........................................................................................................... 77 WT/TPR/S/338 • United Arab Emirates 
 
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  4.3.2.2   WTO commitments .............................................................................................. 79 
4.3.2.3   Policies ............................................................................................................ .. 80 
4.3.3   Telecommunications ............................................................................................... 81 
4.3.4   Transport .............................................................................................................  83 
4.3.4.1   Air transport ....................................................................................................... 83 
4.3.4.2   Mariti me tran sport .............................................................................................. 86 
4.3.5   Tourism ................................................................................................................ 87 
REFERENCES .................................................................................................................. 9 0 
5   APPENDIX  TABLES .................................................................................................... 92  
 
CHARTS 
 
Chart 1.1 Non-oil direct trade by main HS sections , 2011 and 2014 ........................................ 15 
Chart 1.2 Non-oil free zones trade by  main HS sectio ns, 2011 and 2014. ................................. 16 
Chart 1.3 Non-oil direct trade by main origin and destination, 2011 and 2014 ........................... 18 
Chart 1.4 Non-oil free zones trade by main  origin and destin ation, 2011 and 2014  .................... 19 
Chart 3.1 Frequency distribution  of MFN tariff  rates,  2015...................................................... 36 
Chart 4.1 Domestic support  to agricult ure, 2014 .................................................................. 63 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2010-15  .......................................................... 9  
Table 1.2 GDP and em ployment, 2010-1 5 ........................................................................... 10 
Table 1.3 Balance of payments, 2010-14 ............................................................................. 14 
Table 2.1 Main trade-related laws  and regulation s in the UAE ................................................. 22 
Table 2.2 Notifications to the WTO, March 2013-August 2015 ................................................. 25 
Table 3.1 Tariff structur e in the UA E, 2011- 15 ..................................................................... 36 
Table 3.2 Summary analysis of 2015 applied and bound  MFN ta riffs ........................................ 37 
Table 3.3 Tariff lines wi th mixed MFN tariff, 2015 ................................................................. 38 
Table 3.4 Prohibited goods ................................................................................................ 39 
Table 3.5 Restri cted goods ................................................................................................ 40 
Table 3.6 Selected procurem ent methods an d criteria ........................................................... 53 
Table 3.7 Public procurement thresholds for approval ............................................................ 54 
Table 3.8 Public procurement by the UAE Fede ral Government thresholds under regional 
trade agreements ............................................................................................................ 54 
Table 3.9 Patents applications and patent grants in the UAE (2011-14) .................................... 56 
Table 3.10 Copyright works: registration reques ts and approvals, and registration requests 
from distribu tors, 2012- 15 ................................................................................................ 56 
Table 3.11 Trademark applications and trad emark registrations in  the UAE (2012-14 ) ............... 57 
Table 4.1 Crop production  in the UA E, 2006- 13 .................................................................... 59 
Table 4.2 Livestock numbers  in the UA E, 2006- 13 ................................................................ 60 
Table 4.3 Livestock and animal products on commercial farms in the UA E, 2010- 13 .................. 60 WT/TPR/S/338 • United Arab Emirates 
 
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  Table 4.4 Imports of fish and agricultural pr oducts, 2011-1 4 .................................................. 60 
Table 4.5 Exports (excluding re-exports) of  fish and agricultural products, 2010-14 ................... 61 
Table 4.6 Fisheries catch in the UAE, 2007-13 ...................................................................... 64 
Table 4.7 Top five manufacturing sectors for investment and employment, 2013-14 .................. 68 
Table 4.8 UAE WTO financia l services commitments .............................................................. 69 
Table 4.9 Construction in the UAE, 2010-14 ......................................................................... 77 
Table 4.10 Selected large construction projects under construction in the UAE in 2015 ............... 78 
Table 4.11 UAE WTO construction-r elated services  commitments ............................................ 79 
Table 4.12 Licences i ssued by the TRA ................................................................................ 82 
Table 4.13 UAE WTO tourism and travel -related services  commitments ................................... 87 
Table 4.14 Regulatory  reforms,  2014  .................................................................................. 89 
 
BOX 
 
Box 4.1 Islamic banking .................................................................................................... 71 
 
APPENDIX TABLES 
 
Table A1.1 Non-oil direct exports and re-exports by HS sections and main chapters, 2011-1 4 ....................................................................................................................... .. 92
 
Table A1.2 Merchandise direct imports by HS sections and main chapters, 2011-14 ................... 94 
Table A1.3 Non-oil free zones exports and re-exports by HS sections and main chapters, 
2011-1 4 ....................................................................................................................... .. 96 
Table A1.4 Merchandise free zones imports by  HS sections and ma in chapters , 2011-14 ............ 98 
Table A1.5 Non-oil direct exports and re -exports by trading partner, 2011-14 ........................ 100  
Table A1.6 Non-oil direct imports by trading partner, 2011-14 .............................................. 102  
Table A1.7 Non-oil free zones exports and re -exports by trading partner, 2011-14 .................. 104  
Table A1.8 Non-oil free zones import s by trading part ner, 2011- 14 ....................................... 106  
 
Table A4.1 Status of ASAs  with other countries .................................................................. 107  
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  SUMMARY 
1. The United Arab Emirates is a federation of seven emirates: Abu Dhabi; Dubai; Sharjah; 
Fujairah; Umm al-Quwatin; Ajman; and Ras al-Khaimah. As a federation, responsibility for policy, laws, and administration is shared among the federal authorities and the individual emirates. 
Furthermore, as a member of the Cooperation Council for the Arab States of the Gulf (GCC), laws 
and policies in some areas, including customs proc edures and tariffs, are developed and applied at 
the GCC level. 
2. Between 2010 and 2014, real GDP growth averaged 4.5% annually. The growth rate 
declined to 3.1% in 2015. Since 2012 growth has been led by the non-hydrocarbon sectors 
reflecting the successful diversification of the economy. GDP per capita also increased in real terms reaching US$43,400 in 2015. Although the UAE has diversified the economy, the hydrocarbon 
sector remains very important: crude oil and ga s contributed 34% to GDP, manufacturing 9%, and 
services 57%. Within services, financial services (13.8% of GDP, including imputed bank services), wholesale and retail trade (11.3% of GDP), and re al estate and business services (10.3%) are the 
main contributors. 
3. After years of fiscal surpluses, the fall in oil prices that started in 2014 has affected 
Government revenues which declined considerably in 2015, as such, the UAE as a whole expected 
a fiscal deficit of 3% of GDP in 2015. Consequently, a fiscal consolidation programme was 
introduced to control public spending. Neverthe less, the UAE has some room for manoeuvre as 
total public debt was about 14% of GDP in 2015, and the UAE has foreign exchange reserves equivalent to over 7 months of imports. Furtherm ore, individual emirates have sovereign wealth 
funds of varying magnitude. 
4. Trade is critically important to the UAE with total trade in goods and services equivalent to 
nearly 176% of GDP in 2015. The surplus in trade-in-goods is partly offset by a large deficit in 
trade-in-services. Balance of payments data indicates that the total value of goods exports fell in 
2014 to US$371 billion as oil and natural gas expo rts fell to US$112 billion and are expected to 
have fallen further to US$75 billion in 2015. Ne vertheless, the UAE continues to run a current 
account surplus. 
5. Trade, investment and development policy in the UAE is focused on diversification of the 
economy, with a particular emphasis on improving competiveness and high technology sectors. Free zones and economic specialized zones are important facets of the UAE economy and the 
Government's growth strategy. The main advantages for investment are no corporate or personal 
income taxes, exemptions from customs duties, and exemptions from several domestic regulations that apply within the customs territory, including Emiratization. In addition, foreign ownership is 
not limited to 49%, as it is within the customs territory. Currently, about two-thirds of exports of 
non-oil products are from free zones. 
6. At the Federal level, the Ministry of Economy is responsible for trade policy and development 
of the national economy. As a member of th e GCC, the UAE applies the Common Customs Law, 
the common external tariff, the Unified Guide for Customs Procedures at First Points of Entry, the Common Law on Anti-dumping and Countervailing Measures, and other common rules relating to trade. Also through the GCC, the UAE is a party to  free trade agreements with the EFTA states and 
Singapore and negotiations on trade agreements with several other countries. 
7. Under the GCC common external tariff, the tariff on most products is either duty free or 5%. 
A tariff of 100% or a minimum specific duty is applied to tobacco products. Although nearly all 
tariffs are below their bound rate, there are 19 tariff lines with a minimum specific duty and, 
therefore, the  ad valorem  equivalent could be greater than the 200% bound duty. Prohibited 
products include live swine and other products prohibited on security, health and safety grounds. 
Restricted products include pig meat products and alcoholic beverages which require import 
licences and, in most cases, the tariff on these products is 200%. WT/TPR/S/338 • United Arab Emirates 
 
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  8. The customs authorities of each emirate are responsible for applying the GCC Common 
Customs Law, and the Unified Guide for Customs Procedures. Dubai Customs and the General Administration of Customs in Abu Dhabi have electronic systems for customs declarations. The UAE intends to begin implementing an authorized economic operator (AEO) programme by 
launching a pilot programme with Dubai Customs. 
9. Trading (importing and/or exporting), in the UAE requires a trading licence and a trader 
code which is available from the customs departme nt of each emirate and is valid throughout the 
UAE. To qualify for a licence the applicant must be a UAE national or a company established in the 
UAE that is 51% owned by UAE nati onals. Distribution of imported goods may only be undertaken 
by trade agencies which must be owned by UAE nationals or by companies wholly owned by UAE 
nationals. Free zones are exempt from these licensing requirements. 
10. In September 2015, the UAE notified the WTO that the GCC Common Law on Anti-dumping 
and Countervailing Measures of 2003 had been ratified and that a Federal law was being prepared which would incorporate the 2010 amended GCC Common Law. 
11. As a member of the GCC, the UAE is a member of the Gulf Standardization Organization 
(GSO) and most of the standards published by the Emirates Authority for Standardization and 
Metrology (ESMA) are based on GCC standards. According to the authorities, about 77% of 
standards conform to international standards and, in the absence of an international standard, the 
national standards of another countries may be used as a basis for a UAE standard. In 2014, an automated system for conformity assessment was in troduced by the ESMA with plans to introduce 
online systems for certification and accreditation of conformity assessment bodies. 
12. Imports of all live animals and animal products (except food products of animal origin) and 
fodder need an import permit issued by the MOEW. Additionally, all live animals and animal 
products as well as all plants and plant products  are subject to quarantine requirements and need 
to be accompanied by health certificates. The dr aft GCC Guide for Control on Imported Foods was 
issued in 2015. The Guide describes principles and regulatory requirements to be applied by the 
importing countries. Application of the Guide is to be on a trial basis until 1 June 2016. 
13. Implementing regulations for the Competition Law were issued in October 2014 which 
provided details on the processes and procedures for the Law's implementation. However, the UAE Cabinet has yet to determine thresholds for the de minimis exemption and market share 
thresholds to define dominant position and economic concentration. In general, prices are decided 
by market forces and price monitoring is largely to improve consumer awareness. However, the 
Ministry of Health publishes prices for about 8, 000 pharmaceutical products. Price controls also 
apply to telecommunications services, and to electricity and water. 
14. The UAE is not a party to the Agreement on Government Procurement. Federal laws apply to 
procurement by most federal agencies while at the emirate level, local laws apply. However, a new government procurement law is expected to come into force in 2016. Under the current federal 
law, price preferences of 10% are given to companies with up to Dh 10 million in capital and 51% 
owned by UAE or GCC nationals. 
15. State involvement continues to be prevalent in many sectors such as oil and gas production, 
air and maritime transport and facilities, telecommunications, and financial services. Ownership 
structures also tend to be complicated, with government owned holding companies, individual 
emirates and sovereign wealth funds all having stakes. The authorities contend that the Government owned entities are run on purely commercial grounds and are provided no 
preferential treatment. Some of these companies (Emirates Airlines, Etihad Airways, DP World and 
Dnata) are market leaders in their field. Furthe rmore, state investment, both domestically and 
internationally, through sovereign wealth funds is sizeable. According to the authorities, the 
reasons for such widespread state ownership range from revenue and strategic reasons to pushing 
the government agenda on diversification and development. WT/TPR/S/338 • United Arab Emirates 
 
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  16. The decline in oil prices since 2014 affected the UAE, with revenues and export receipts 
falling. However, due to its successful diversificat ion strategy, the UAE is managing to weather the 
storm while maintaining growth and investment. The UAE continues to pursue a strategy of diversification concentrating of high technology sector and high growth sectors such as the Islamic 
economy. To be able to benefit fully from its e fforts the UAE may need to speed up reforms such 
as the full implementation of the Competition Policy Law, easing of restrictions on foreign investment including the requirement of majority ownership by UAE nationals and further 
improving the business environment. 
 WT/TPR/S/338 • United Arab Emirates 
 
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  1  ECONOMIC ENVIRONMENT 
1.1.  In the aftermath of the global financial cris is, the UAE economy has proved to be resilient. As 
a result of prudent macroeconomic management, the economy has been able to post positive economic growth. Between 2010 and 2014, real GDP grew at an average annual growth rate of 
4.52%, and is expected to be around 3% in 2015 (Table 1.1).
1 Growth was initially driven by the 
hydrocarbon sector, which grew by an average annual rate of 6% between 2010 and 2012. However, since 2012, growth has been led by the non-hydrocarbon sector, which grew at an 
average annual rate of 5.6% between 2012 and 20 14. Within the non-hydrocarbon sector, growth 
was driven by construction, retail and wholesale trade, tourism, and manufacturing. Construction growth was due to housing and infrastructure projects as well as landmark tourism projects. Manufacturing growth came about due to investments in free trade zones and further development 
of industry clusters, particularly in the construction materials sector, in food processing, and in the 
manufacturing of aluminium and petrochemicals (Table 1.2). As a result of the growth, GDP per capita rose from US$34,600 in 2010 to US$43,400 in 2015. Trade continues to play a very 
important role in the UAE economy; trade in goods and services as a proportion of GDP rose from 
151% in 2010 to over 176% in 2014. 
Table 1.1 Selected macroeconomic indicators, 2010-15 
 2010 2011  2012  2013a 2014a 2015a 
National accounts       
Real GDP, annual 
percentage change 1.6 5.2 6.9 4.3 4.6 3.1 
   Real hydrocarbon GDP 3.8 6.6  7.6 2.9 4.0 3.2  
   Real non-hydrocarbon 
   GDP 0.7 4.1 7.1 5.0 4.8 3.7 
GDP by type of expenditure, constant 2007 prices (% change)  
Final consumption 
expenditure 8.8 1.9 -11.5  5.3 0.3 .. 
   Government 
   expenditure -9.5 2.5  1.2 1.4 3.7 ..  
   Private expenditure 12.2 1.8 -13.4  6.0 -0.3 .. 
Gross fixed capital 
formation -9.6 1.8  13.2 8.3 3.6 ..  
   Government -36.5 4.9 7.4 7.2 3.4 .. 
   Public secto r -2.6 0.9  12.4 10.7 3.8 ..  
   Private secto r -2.2 1.4 15.1 7.5 3.6 .. 
Change in stocks -8.1 -1.9  -30.8  1.2 8.9 ..  
Export of goods and 
services  0.5 20.7 17.0 4.5 8.2 .. 
   less: imports of goods 
   and services 2.1 18.8  5.2 6.5 6.1 ..  
   less: indirect taxes 
   (net) 4.1 147.6  3.6 5.1 0.7 .. 
Monetary indicators       
Exchange rate (Dh per 
US$, period average) 3.67 3.67 3.67 3.67 3.67 3.67 
Nominal effective 
exchange rate (2010=100) 100.0 96.8
 101.3  103.2  105.1 114.9  
Real effective exchange 
rate (2010=100) 100.0 99.6 94.9 94.5 96.1 107.5  
Consumer price index 
(index, 2007=100) 115.0 116.0  116.8  117.99  120.84 125.8  
Broad money (annual 
percent change)b 6.2 5.0 4.4 22.5 8.0 5.5 
Money and quasi money 
M3 (Dh billion) 985.2 1,001.4  1,083.1  1,219.9  1,332.0 1,363.6  
Consolidated general government finances (Dh billion)  
Total revenue .. ..  379.2  412.1  380.7 286.9  
   Taxes .. .. 302.3  319.1  279.9 188.4  
   Social contributions .. ..  2.7 5.1 5.3 5.5  
       
Expenditures .. .. 327.9  373.8  414.6 411.1  
   Expenses .. ..  356.6  401.0  446.1 ..  
      Compensation of 
employees .. .. 41.0 42.1 47.5 48.6 
      Use of goods and 
services .. ..  40.4 43.2 49.5 55.3 
      Consumption of fixed 
capital .. .. 3.5 3.3 3.8 3.8 
                                               
1 IMF Country Report No. 15/219. WT/TPR/S/338 • United Arab Emirates 
 
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   2010 2011  2012  2013a 2014a 2015a 
      Interest .. ..  4.3 5.9 4.1 3.1  
      Subsidies .. .. 8.5 10.1 12.1 13.0 
      Grants .. ..  2.6 21.6 21.9 11.3  
      Social benefits .. .. 50.0 52.4 61.4 56.7 
      Othe r expenses .. ..  146.4  161.6  174.4 184.5  
   Net acquisition of non-
financial assets .. .. 31.2 33.5 39.9 34.8 
Memorandum items  
External debt (% of GDP)c 48.2 39.6 38.7 44.4 49.1 .. 
Gross official reserves 
(US$ billion)d 32.8 37.2  47.1 68.2 78.5 94.0  
Population (thousands) 8,264 8,152  8,768  9,031  9,302 9,581  
.. Not available. 
 a Preliminary data. GDP growth for 2015 is estima ted based on the “Economic Composite Indicator" 
designed by the Research and St atistics Department of the Cent ral Bank. Missing data are not 
available. 
b Due to changes in economic sector classifications in bank report forms during 2013, the annual 
percentage change for broad money for the year 2013 is exaggerated on account of the inclusion of 
government-related entities deposits in M2, starting in 2013. 
c Foreign liabilities of the banking system are only due to incomplete coverage of debt raised by non-
banks in the intern ational markets. 
d Excludes foreign assets of  sovereign wealth funds. 
 Source: Federal Competitiveness and Statistics Authority for GDP, Bank for International Settlements (BIS) 
for nominal and real effective exch ange rates, and Central Bank of the UAE for balance of payments 
and monetary data. Consolidated government revenues do not include ADNOC transfers and 
government income. 
Table 1.2 GDP and employment, 2010-15 
 2010  2011  2012  2013a 2014a 2015a 
Gross domestic product 
Gross domestic product (Dh billion) 1,051  1,280  1,371  1,422 1,467 1,529  
Gross domestic product (US$ billion) 286  349 373 387 399 416  
Real GDP (Dh billion) 941 990 1,059  1,104 1,155 1,191  
GDP per capita (thousands US$) 34.6  .. .. .. .. 43.4  
GDP by economic activity, constant 2007 prices (% change)     
Non-financial corporations sector 1.8 5.7 6.4 3.3 3.8 ..  
   Agriculture, livestock and fishing -10.5  0.2 -5.5 -0.3 0.3 .. 
   Mining and quarrying 3.8  6.6 7.2 3.1 4.0 ..  
      Crude oil and natural gas  3.8 6.6 7.6 2.9 4.0 .. 
      Quarrying 5.1  -2.1 -26.6  37.5 5.8 ..  
   Manufacturing industries 2.6 9.7 5.6 1.2 3.2 .. 
   Electricity, gas and wate r 3.0  11.8 15.2 2.1 4.8 ..  
   Construction -0.7 -1.8 5.5 3.4 7.3 .. 
   Wholesale retail trade and repairing services 1.8  0.6 0.3 4.9 5.6 ..  
   Restaurants and hotels  -0.2 8.0 5.4 8.9 5.6 .. 
   Transport, storage and communication 0.7  4.6 5.0 2.6 4.7 ..  
      Transport, storage and other communication 0.6 4.1 5.4 2.3 5.2 .. 
      Telecommunication 1.0  5.9 4.1 3.2 3.6 ..  
   Real estate and business services -0.2 11.1 12.1 3.7 -1.4 .. 
   Social and personal services  2.0 17.8 6.4 4.6 0.2 ..  
Financial corporations sector -6.4 2.7 3.0 19.5 12.5 .. 
   Financial service activities and auxiliary activities  .. .. .. 21.4 13.9 ..  
   Insurance, reinsurance and auxiliary activities  .. .. .. 14.6 8.6 .. 
Government services sector  12.7 3.9 13.5 11.3 10.9 ..  
   Domestic services of households 6.2 -1.7 16.4 20.0 9.8 .. 
     less: imputed bank services  3.4 9.3 -0.8 15.6 10.6 .. 
Share of main sectors in current GDP (%)      
Non-financial corporations sector 91.8 93.1 92.7 91.7 90.7 ..  
   Agriculture, livestock and fishing 0.9 0.7 0.7 0.7 0.7 .. 
   Mining and quarrying 31.8  39.5 39.5 37.6 34.6 ..  
      Crude oil and natural gas  31.6 39.3 39.3 37.3 34.3 .. 
      Quarrying 0.2  0.2 0.2 0.2 0.2 ..  
   Manufacturing industries 9.0 8.7 8.9 8.8 9.0 .. 
   Electricity, gas and wate r 2.4  2.3 2.5 2.4 2.5 ..  WT/TPR/S/338 • United Arab Emirates 
 
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   2010  2011  2012  2013a 2014a 2015a 
   Construction 11.6 9.5 8.8 8.8 9.0 .. 
   Wholesale retail trade and repairing services 12.6  10.6 10.5 10.8 11.3 ..  
   Restaurants and hotels 2.1 2.0 2.0 2.1 2.2 .. 
   Transport, storage and communication 8.5  7.9 7.8 8.1 8.7 ..  
      Transport, storage and other communication 6.0 5.8 5.8 6.0 6.4 .. 
      Telecommunication 2.5  2.1 2.0 2.1 2.2 ..  
   Real estate and business services 10.7 9.5 9.7 9.9 10.3 .. 
   Social and personal services  2.2 2.3 2.4 2.5 2.5 ..  
Financial corporations sector 7.0 6.2 6.4 7.5 8.3 .. 
   Financial service activities and auxiliary activities  .. .. 4.8 5.8 6.6 ..  
   Insurance, reinsurance and auxiliary activities .. .. 1.5 1.6 1.7 .. 
Government services sector  5.4 4.7 5.0 5.4 6.0 ..  
   Domestic services of households 0.4 0.4 0.4 0.5 0.5 .. 
     less: imputed bank services  4.8 4.4 4.4 5.0 5.5 ..  
GDP by type of expenditure (% of current GDP)       
Final consumption expenditure  67.3 59.3 51.5 52.3 55.6 ..  
   Government expenditure 8.6 7.3 6.9 6.8 7.5 .. 
   Private expenditure 58.8  52.0 44.7 45.4 48.1 ..  
Gross fixed capital formation 25.0 21.7 22.5 22.6 23.7 .. 
   Government 3.7  3.6 3.6 3.6 3.7 ..  
   Public secto r 6.3 5.4 5.4 5.7 6.3 .. 
   Private secto r 14.9  12.8 13.5 13.4 13.8 ..  
Change in stocks 1.2 1.0 0.6 0.6 0.6 .. 
Export of goods and services 78.8  90.3 100.6  101.3 98.0 ..  
   less: imports of goods and services 72.2 72.3 75.3 76.8 77.9 .. 
   less: indirect taxes (net) 1.0  2.1 2.1 2.1 2.0 ..  
Employment  
Unemployment rate ..  .. .. .. .. ..  
Distribution of workforce by economic sectors       
Non-financial corporations sector 79.7 .. .. .. .. ..  
   Agriculture, livestock and fishing  4.7 .. .. .. .. .. 
   Mining and quarrying 1.3  .. .. .. .. ..  
      Crude oil and natural gas  1.1 .. .. .. .. .. 
      Quarrying 0.2  .. .. .. .. ..  
   Manufacturing industries 11.3 .. .. .. .. .. 
   Electricity, gas and wate r 1.2  .. .. .. .. ..  
   Construction 23.2 .. .. .. .. .. 
   Wholesale retail trade and repairing services 19.5  .. .. .. .. ..  
   Restaurants and hotels 4.3 .. .. .. .. .. 
   Transport, storage and communication 6.3  .. .. .. .. ..  
      Transport, storage and other communication 6.0 .. .. .. .. .. 
      Telecommunication 0.3  .. .. .. .. ..  
   Real estate and business services 4.0 .. .. .. .. .. 
   Social and personal services  3.9 .. .. .. .. ..  
Financial corporations sector 1.5 .. .. .. .. .. 
Government services sector  10.8 .. .. .. .. ..  
Domestic services of households 8.1 .. .. .. .. .. 
.. Not available. 
 a Preliminary data.  Source: Federal Competitiveness and Statistics Authority. 
1.2.  Future risks to growth arise from persistent lower oil prices, which will result in lower export 
revenues and fiscal pressures. Furthermore, the appr eciation in the real effective exchange rate 
would in all likelihood negatively impact the current account and competitiveness of the UAE. 
However, the authorities maintain that there is no evidence of this being the case. 
1.3.  The authorities are cognizant of the above challenges. In this regard, a fiscal consolidation 
plan has been put in place (Section 1.2). Additional ly, the authorities are in the process of drafting 
a new Foreign Investment Law, which would allow 100% foreign ownership in specific sectors 
outside the free zones. However, efforts to strengthen and improve the business environment need to continue, particularly in the area of enforcing contracts and resolving insolvencies. WT/TPR/S/338 • United Arab Emirates 
 
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  Furthermore, as envisaged by the Government, transitioning towards a knowledge-driven economy 
through better quality of education, promotion of innovation and use of new technologies, would contribute to raising productivity and diversifying the economy; thus sustaining growth. In this respect, the Government has started to implement initiatives in alternative energy, Islamic 
economy, and space and aerospace. 
1.4.  Improving SME access to financing is import ant for inclusive growth. In this regard, progress 
has been made in SME finance through the issuance of a new SME Law and the establishment of 
financial infrastructure, such as a credit bureau and credit registry. Other initiatives which have 
been put in place over the past few years include using public funds to facilitate access to credit, fostering financial literacy, and helping business incubation. 
1.1  Fiscal Policy 
1.5.   In 2014, consolidated government revenues (i.e. the Federal Government, and the 
Governments of the seven emirates) declined by 5% . The decline came about due to a fall in local 
government tax revenues, which are comprised of fees paid by hotels and restaurants, fees on 
profits of foreign banks, and royalties on oil and natural gas. Furthermore, with oil prices 
continuing to slide, government revenues decreased by 21% during the first nine months of 2015, compared to the same period of 2014, due mainly to a decline in taxes of 30.3%. These revenues, 
however, do not include important transfers from Abu Dhabi National Oil Company (ADNOC) and 
government investment income. 
1.6.  The authorities continued to pursue an ex pansionary fiscal policy, with total expenditures 
rising by nearly 11% in 2014. Expenditure growth was fuelled by local government public spending 
with a view to continue funding planned spending programmes and refrain from reducing capital 
spending which would have had a detrimental impact on non-hydrocarbon real growth. Consequently, the fiscal surplus declined from nearly 11% of GDP in 2012 to 5% of GDP in 2014. 
However, during the first nine months of 2015 expenditures decreased by 13.9% reflecting the 
start of a fiscal consolidation plan by the Government. With weakening oil prices the fiscal balance is expected to have been a deficit of 3% of GDP in 2015. 
1.7.  As a result of the fiscal surpluses up to 2014, gross general government debt declined from 
nearly 22% of GDP in 2012 to approximately 14% of GDP in 2014. 
1.8.  To mitigate the impact of the decline in international oil prices, the authorities have 
embarked on a fiscal consolidation programme. Under the plan, the authorities envisage a 
consolidation of 2.8% of non-oil GDP in 2015 and of a total of 13.5% of non-oil GDP by 2020. The 
authorities plan to achieve their target through expenditure cuts by: 
 controlling public wage bill growth (stabilizing the size per capita and limiting wage 
increases to correspond to productivity gains);  
 continuing reductions in energy and water subsidies and other transfers, while 
protecting those in need
2; 
 lowering capital transfers to Abu Dhabi government related entities; and  
 stabilizing other expenses in real terms. 
1.9.  Further gains can be realized if the authorities choose to implement revenue enhancing 
measures such as the broadening of the corporat e income and excise taxes and introducing a VAT.  
1.2  Monetary and Exchange Policy 
1.10.  Monetary policy is formulated and conducte d by the Central Bank of the UAE (CBUAE). The 
Central Bank is also responsible for the formulation and implementation of banking and credit 
policies, so as to ensure the stability of the currency and the growth of the national economy of 
the UAE in a balanced manner. The CBUAE has auth ority over the banking and financial sectors, 
                                               
2 Abu Dhabi increased water and electricity tariffs by 170% and 40%, respectively, in January 2015. 
With lower oil prices, implicit subsidies on petroleum products are estimated to have almost disappeared. Implicit subsidies on natural gas are still high. WT/TPR/S/338 • United Arab Emirates 
 
- 13 - 
 
  except for the financial institutions operating in the Dubai International Financial Centre (DIFC). 
The UAE has a fixed exchange rate regime, whereb y the domestic currency, the UAE dirham (Dh) 
is pegged (since November 1997) to the U.S. dollar at an exchange rate of Dh 3.6725/US$1. The UAE's exchange system is free of restrictions  on payments and transfers for international 
transactions, except for certain restrictions under terrorist financing provisions, taken in 
accordance with UN resolutions. Hence, the CBUA E has to keep enough reserves to maintain the 
currency's peg to the U.S. dollar. As a result, monetary policy is focused on maintaining the peg. 
As per Union Law No. 10 of 1980 concerning the Central Bank, the Monetary System and 
Organization of Banking, the CBUAE also acts as banker of last resort to the Government and the financial sector, and as the Government's financial advisor. 
1.11.  Under the provisions of Union Law No. 10 of 1980, the CBUAE may use a number of 
instruments to attain its monetary objectives. The fixed peg of the dirham to the U.S. dollar, 
however, means that local interest rates must be aligned to those of the dollar across the maturity 
curve. The main instruments used by the CBUAE to regulate domestic liquidity are: 
 the minimum reserve requirement; 
 US$/Dh swaps for dirham liquidity; 
 advances and overdraft facility for banks; 
 prudential regulations; 
 issuance by the CBUAE of certificates of deposit and repo facilities on certificates of 
deposit (CDs); and  
 liquidity support facilities made available to commercial banks since the advent of the 
international crisis. 
1.12.  During the review period, the CBUAE main tained an accommodative monetary policy, while 
customer deposits at banks continued to grow th anks to available liquidity and growth in non- 
resident deposits. Following the fall in oil prices which started in June 2014 and continued into the 
second half of 2015, however, domestic deposits slowed down leading to an increase in total 
customer deposits in the order of 3.5% in 2015, while domestic credit remained resilient, 
increasing by 8.1%. 
1.13.  On the exchange front, U.S. dollar apprecia tion resulted in the REER appreciating by 3.3% 
in 2014, and by 9% in Q1 2015 compared to the average 2014 level. 
1.14.  Inflation, as measured by the consumer price index, rose from 0.7% in 2012 to 4.1% in 
2015. The increase has come on the back of rising  rents (housing represents nearly 40% of the 
consumer price basket) and, to a lesser extent, on the removal of subsides on fuel. 
1.3  Balance of Payments 
1.15.  The balance of UAE merchandise trade declined in 2014, falling to US$131 billion, from 
US$144 billion in 2013 (Table 1.3). Explaining part of the decline was a 13.8% decrease in the value of hydrocarbon exports. This was partly offset by a sizeable increase in the value of non-
hydrocarbon exports, resulting in a milder 0.9% contraction in the value of total exports. The 
weakening merchandise trade balance was also attributed to a 4.3% increase in the value of imports. 
1.16.  The services trade deficit, consisting of travel, transport, freight, insurance and government 
services, widened in 2014. The deficit increased from US$49.3 billion in 2013 to US$50.8 billion in 
2014. The softening trade balance, in conjunction with a widening balance of transfers deficit, 
resulted in a decline of the current account surplus. In 2014, the current account surplus fell to 
13.7% of GDP. 
1.17.  With regard to the financial account,  the deficit widened in 2014 to US$52.4 billion. 
Accounting for this widening was an increase in th e net outflow of private capital. Public sector 
capital outflows increased. Consequently, the surplus of the overall balance of payments reached 
2.3% of GDP in 2014, a decline from 5.1% in 2013. As a result, net foreign assets of the Central WT/TPR/S/338 • United Arab Emirates 
 
- 14 - 
 
  Bank increased during the same period. Foreign assets of the Central Bank provided cover for 
7.1 months of imports (net of re-exports) in 2014, up from 6.6 months in 2013. 
Table 1.3 Balance of payments, 2010-14 
(US$ billion) 
 2010  2011  2012  2013 2014a 
Current account balance 7.2 50.9 79.6 71.4 54.6 
Trade balance 49 106.6 141.7 144.2 130.9 
   Exports 213.5 302 359.7 374.2 370.7 
      Oil and oil products 66.8 107.5 112.7 116.4 98.9 
      Natural gas 7.9 12 13.6 13 12.7 
      Non-hydrocarbon 51 70.9 100 104.1 112.4 
      Re-exportsb 87.9 119.6 133.4 140.7 146.7 
   Imports (f.o.b.) -164.6 -195.4 -218 -230 -239.8 
      Imports by emirates -114 -137.9 -143.3 -146 -147.3 
      Free zones -54.8 -60.3 -68.7 -77.9 -86.6 
      Natural gas .. .. -6 -6.1 -5.9 
Income, net -0.1 0.1 0.3 0.2 0.3 
   Banking system (net) -1.3 -1.4 -1.4 -1.6 -1.6 
   Private non-banks (net) -1.6 -1.7 -1.5 -1.8 -1.9 
   Government 6 6.8 7.4 8.1 8.2 
   Official debt service (interest) -0.9 -1.1 -1.1 -1.3 -1.4 
   Foreign partners – oil -2.3 -2.6 -3 -3.3 -3.1 
   Foreign partners – gas 0 0 0 0 0 
Services, net -30.4 -43.7 -47.2 -49.3 -50.8 
   Credits 11.7 12.8 16.1 18.2 20.6 
   Debits -42.1 -56.5 -63.2 -67.4 -71.4 
Transfers, net -11.3 -12 -15.2 -23.7 -25.7 
   Private (incl. remittances) -10.6 -11.2 -14.4 -17.9 -19.3 
   Official -0.7 -0.8 -0.8 -5.8 -6.4 
Capital account balance 0 0 0 0 0 
Financial account balance 5 -29.7 -45.9 -49.5 -52.4 
   Private capital 7.7 0.8 -14.6 -17.1 -19.8 
      Direct investment, net 3.5 5.5 1.4 1.7 3.9 
      Portfolio flows, net 1 0.7 1 1.1 1.2 
      Commercial banks -1.3 0.7 -8.7 -12.4 -17.4 
      Private non-banks and otherc 4.6 -6.2 -8.3 -7.5 -7.6 
   Official capitald -2.7 -30.5 -31.3 -32.4 -32.6 
Errors and omissions -4.9 -16.7 -23.6 -2 7.1 
Overall balance 7.3 4.5 10 19.9 9.3 
Change in Central Bank reserves -7.3 -4.5 -10 -19.9 -9.3 
Memorandum items:      
Current account (% of GDP) 2.5 14.7 21.3 18.4 13.7 
Gross reserves of th e Central Bank (US$ 
billion) 32.8 37.2 47.1 68.2 78.5 
.. Not available. 
 a Preliminary data. b Not separately compiled for the years 2010-11; estimated at 40 to 70% of emirates imports. c Estimate based on UNCTAD  World Investment Report. 
d Including estimated changes in SWF net external assets. 
 Source: IMF, Article IV Consultations 2013, 2014 and 2015. 
1.4  Developments in Trade 
1.4.1  Composition of trade 
1.18.  Since trade data from UN Comtrade was not available, the Secretariat used data provided 
by the authorities at the HS 4-digit level and th e IMF. There are certain discrepancies with the 
balance of payments data due to different meth odologies used. Furthermore, comprehensive trade 
data was not available, hence free zone trade, non-oil trade and trade in oil, oil products and gas are discussed separately. 
1.19.  Total non-oil exports and re-exports increased from US$88.4 billion in 2011 to 
US$102.3 billion in 2014 (Chart 1.1 and Table A1.1). Within non-oil exports, the share of WT/TPR/S/338 • United Arab Emirates 
 
- 15 - 
 
  aluminium, vehicles and machinery has increased substantially. In contrast, the share of precious 
stones and metals has decreased. 
Chart 1.1 Non-oil direct trade by main HS sections, 2011 and 2014 
2011 2014
(a)    Exports and re-exports
Total: US$ 88,433 million
(b)    Imports
Total: US$ 164,071 million Total: US$ 189,567 millionTotal: US$ 102,334 millionChemical 
products
2.6% Other
10.0%
Transport 
equipment
12.8%Plastics
3.9%
Precious 
stones & 
metals
47.2%
Textiles
3.4%Chemical 
products
5.5%
Base metals
9.3%Machinery
17.6%Other
17.0%Textiles
3.8%Chemical 
products
6.2%
Base metals
7.7%Machinery
19.8%Other
17.7%Precious 
stones & 
metals
36.3%Other
10.8%
Transport 
equipment
12.0%Transport 
equipment
14.9%Base 
metals
5.6%
Vegetable 
products
3.7%Vegetable 
products
4.0%
Precious 
stones & 
metals
31.3%Precious 
stones & 
metals
26.1%Chemical 
products
2.4%
Plastics
4.6%
Base 
metals
10.1%Machinery
16.4%Prepared 
foodstuffs; 
beverages
3.3%Prepared 
foodstuffs; 
beverages
3.3%
Textiles
3.3%
Machinery
14.1%Transport 
equipment
10.0%Textiles
3.2%
 
 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. 
1.20.  Non-oil free zone exports and re-exports rose from US$39.8 billion in 2011 to 
US$64.7 billion in 2014. Within this category, the share of machinery, particularly electrical 
machinery, rose considerably as did the share of vehicles. On the other hand, the shares of 
mineral products and precious stones and metals have decreased (Chart 1.2 and Table A1.3). WT/TPR/S/338 • United Arab Emirates 
 
- 16 - 
 
  Chart 1.2 Non-oil free zones trade by main HS sections, 2011 and 2014. 
2011 2014
(a)    Exports and re-exports
Total: US$ 39,800 million
(b)    Imports
Total: US$ 60,284 million Total: US$ 80,436 millionTotal: US$ 64,703 millionChemical 
products
5.6%Other
10.4%
Precious 
stones & 
metals
13.9%Transport 
equipment
5.4%
Machinery
46.5%
Chemical 
products
5.7%
Base metals
7.1%
Machinery
45.5%Other
17.1% Chemical 
products
6.4%
Base 
metals
6.2%
Machinery
49.3%Other
18.6%Mineral 
products
7.2%Other
10.9%
Transport 
equipment
6.1%Transport 
equipment
6.0%Base 
metals
3.9%
Mineral 
products
7.7%Mineral 
products
6.3%
Precious 
stones & 
metals
12.2%Precious 
stones & 
metals
5.8%Chemical 
products
5.9%
Machinery
53.9%Base 
metals
3.8%Transport 
equipment
9.2%Mineral 
products
10.2%Prepared 
foodstuff; 
beverages
4.2%Prepared 
foodstuff; 
beverages
5.0%
Precious 
stones & 
metals
4.2%
 
 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. 
1.21.  Exports of oil, oil products and gas we re approximately US$112 billion in 2014 after being 
nearly US$130 billion a year earlier. They were expected to decrease further to US$70 billion in 
2015. The decline has come about due to the fall in the international price of oil. 
1.22.  Non-oil imports rose from US$164.1 billion in 2011 to approximately US$190 billion in 2014 
(Chart 1.1 and Table A1.2). The shares of machin ery, transport equipment and chemical products 
rose, while those of precious stones and metals and base metals declined. WT/TPR/S/338 • United Arab Emirates 
 
- 17 - 
 
  1.23.  Over the same period free zone imports rose from US$60.3 billion to over US$80 billion 
(Chart 1.2 and Table A1.4). The shares of machin ery and chemicals rose, while those of precious 
stones and metals and base metals declined. 
1.4.2   Direction of trade 
1.24.  Hong Kong, China was the largest export destination for non-oil goods from the UAE, 
followed by India and the EU-28. The shares of both Hong Kong, China and India declined 
markedly, especially India (Chart 1.3 and Table A1 .5). On the other hand, the share of the EU-28 
and the Middle East as a whole increased significantly. 
1.25.  Exports from the free zones were concentrated in the Middle East, with Saudi Arabia, Iraq 
and Iran being the three largest destinations (Cha rt 1.4 and Table A1.7). During the period under 
review, the shares of Saudi Arabia and Iraq declined, while that of Iran rose many fold.  
1.26.  In 2014, the UAE's largest source of imports was the EU-28 followed by China and the U.S. 
The shares of all three increased during the period under review. However the share of imports from India declined considerably (Chart 1.3 and Table A1.6). 
1.27.  China was the largest importer into free zones followed by the EU-28 and Viet Nam. The 
shares of China and Viet Nam rose. In contra st, the shares of the EU-28, U.S. and India 
experienced a decline (Chart 1.4 and Table A1.8). 
1.5  Foreign Direct Investment 
1.28.  Between 2010 and 2013, FDI inflows into the UAE grew at a steady pace, reaching 
US$10.5 billion in 2013. In 2014, FDI in flows declined slightly to US$10.1 billion. As a result of the 
steady increase in investment, the stock of FDI stood at US$115.6 billion in 2014. 
1.29.  In 2013 (latest available data), the largest investor in the UAE was the United Kingdom, 
followed by India and France. Real estate, renting and business activities attracted the most investment followed by wholesale and retail trade,  repair of motor vehicles and motorcycles, and 
financial intermediation. It is expected that inward FDI will increase with the promulgation of the 
new Investment Law. WT/TPR/S/338 • United Arab Emirates 
 
- 18 - 
 
  Chart 1.3 Non-oil direct trade by main origin and destination, 2011 and 2014 
2011 2014
(a)    Ex ports and re-ex ports
Total: US$88,433 million
(b)    Im ports
Total: US$164,071 million Total: US$189,567 millionOman
1.3%
Total: US$102,334 millionOman
5.2%Others
12.8%Americas
3.0%
Iraq
6.5%
Other Middle 
East
7.4%Asia
55.5%Middle East
26.2%Americas
2.5%
Saudi Arabia
5.5%EU(28)
10.2%
Other Europe
7.6%
India
17.4%Others
16.8%
Middle 
East
16.0%
United 
States
8.9%
Other America
3.0%
EU(28)
18.3%
Other Europe
4.2%
Japan
5.0%China
9.1%Other Asia
18.2%Others
9.9%United States
10.2%
Other 
America
3.3%
EU(28)
20.2%
Other Europe
5.4%
Japan
5.6%China
11.7%Other Asia
17.3%Others
11.9%
Americas
11.9%Americas
13.4%EU(28)
5.9%
Other 
Middle East
7.4%
Middle 
East
5.3%Europe
17.8%Europe
12.8%
Europe
22.4%Asia
49.8% Asia
43.7%Europe
25.6%Hong Kong, 
China
18.8%Iraq
3.7%
Asia
36.7%
Middle East
6.0%India
9.2%Other Europe
6.9%
Other Asia
9.3%
India
27.4%
Hong Kong, 
China
14.6%Other Asia
11.2%Saudi Arabia
3.6%
India
10.9%
 
 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
- 19 - 
 
  Chart 1.4 Non-oil free zones trade by ma in origin and destination, 2011 and 2014 
2011 2014
(a)    Ex ports and re-ex ports
Total: US$39,800 million
(b)    Im ports
Total: US$60,284 million Total: US$80,436 millionIran, Islamic 
Rep.
0.8%
Total: US$64,703 millionIran, Islamic 
Rep.
8.6%Others
8.9%Americas
3.1%
Iraq
10.1%
Other Middle 
East
14.3%Asia
22.7%
Middle East
48.0%Americas
2.2%
Saudi Arabia
15.6%EU(28)
5.1%Other Europe
2.2%
Viet Nam
1.4%Others
17.1%
Middle 
East
47.6%
United 
States
7.8% Other 
America
3.7%
EU(28)
19.3%
Other Europe
3.0%
Japan
6.4%
China
23.6%Other Asia
14.1%Others
7.1%United 
States
5.9%Other 
America
3.1%
EU(28)
15.7%
Other 
Europe
2.6%
Japan
4.3%
China
28.4%Other Asia
13.4%Others
9.1%
Americas
11.5%Americas
9.0%EU(28)
3.7%
Other 
Middle East
13.7%
Middle 
East
4.1%Europe
7.3%Europe
6.5%
Europe
22.3%
Asia
54.9% Asia
59.5%Europe
18.4%Hong Kong, 
China
3.6%
Iraq
15.3%Asia
12.3%
Middle East
4.2%India
5.8%Other Europe
2.8%Other Asia
6.9%
India
12.2%Hong Kong, 
China
2.4%Other Asia
7.1%Saudi Arabia
17.1%
India
2.8%
Africa
11.1%Africa
13.1%
Viet Nam
7.6%India
9.4%
 
 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
- 20 - 
 
  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  The United Arab Emirates (UAE) is a federation of seven emirates: Abu Dhabi; Dubai; 
Sharjah; Fujairah; Umm al-Quwain; Ajman; and Ras al-Khaimah. There have been no changes in 
the political system of the country since the last TPR.
1 The Federal Constitution2 states that the 
UAE has exclusive legislative and executive jurisdiction for foreign affairs, security and defence, nationality and immigration issues, education, public health, currency, postal, telephone and other 
communication services, air traffic control and licen sing of aircraft, labour relations, banking, 
delimitation of territorial waters and extradition of criminals. Responsibilities that are not under the exclusive jurisdiction of the Federation are the responsibility of each emirate.
3 
2.2.  The executive, legislative and judiciary func tions in the UAE are executed by the five federal 
authorities: the Federal Supreme Council; the Pres ident; the Council of Ministers; the Federal 
National Council; and the Federal Judiciary. 
2.3.  The Federal Supreme Council (FSC) is the highest constitutional authority in the UAE and is 
composed of the rulers of each of the seven emirates. It is also the highest legislative and 
executive body. The FSC is responsible for formulating government policies at federal level, endorsing federal laws and sanctioning decrees, and ratifying treaties and international 
agreements. The FSC selects the President and the Vice President for terms of five years from 
among its members. The FSC is responsible for appr oving the appointment of the Prime Minister of 
the Federation, accepting his resignation, and requesting his resignation upon suggestion of the President of the Federation. Furthermore, the FS C approves the appointment of the President and 
the judges of the Federal Supreme Court, accepts their resignations, and dismisses them in the 
cases specified by the Constitution. 
2.4.  The President is the chief executive of th e State, who has the right to convene and preside 
over meetings of the FSC. The President sign s and promulgates laws, decrees and decisions 
sanctioned by the FSC. The President appoints th e Prime Minister upon approval by the FSC, the 
Deputies of the Prime Minister and the ministers. Currently Sheikh Khalifa bin Zayed Al Nahyan, 
the ruler of Emirate of Abu Dhabi, is the President of the Federation.
4 
2.5.  The Council of Ministers of the Federation is  composed of the Prime Minister, the Deputies of 
the Prime Minister and the ministers. The Prime Mi nister and the ministers constitute the executive 
branch of the Federation. The Council of Mini sters, among other tasks, is responsible for 
implementing the general policies of the Federati on (both domestic and foreign), drawing up the 
annual budget and the final accounts, preparing draft decrees, issuing regulations necessary for the implementation of the federal laws, and supe rvising the implementation of laws, decrees, 
decisions and regulations. One of the key functions of the Council of Ministers is to initiate the 
drafting of federal laws and submit them to the Federal National Council (FNC) before submitting 
them to the President for presentation to the FS C. Sheikh Mohammed bin Ra shid Al Maktoum, the 
Ruler of Emirate of Dubai, has been the Vice President and Prime Minister of the UAE since 2006. 
2.6.  The Federal National Council is a consultative council to the FSC. The Council is made up of 
40 members. Half of the members are elected
5, while the other half are appointed by the rulers of 
the emirates for a four-year term with the possibility of renewal. The number of seats for each 
emirate depends on the population. The FNC review s legislation and proposes amendments to it, 
but it does not have the authority to veto laws or to initiate new laws. The FNC has the power to summon and question any federal ministers. The last FNC election was held in October 2015. 
                                               
1 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Section II(2). 
2 Articles 120 and 121 of the Federal Constitution. 
3 Articles 116 and 122 of the Federal Constitution. 
4 Sheikh Khalifa bin Zayed Al Nahyan was elected as  the President by members of the Supreme Council 
on 3 November 2004. The first President of the country was his father, Sheikh Zayed bin Sultan Al Nahyan 
(Ruler of Abu Dhabi), until his death in November 2004. 
5 The election process was established in 2006. 
 WT/TPR/S/338 • United Arab Emirates 
 
- 21 - 
 
  2.7.  The Federal Judiciary is an independent bo dy (under Article 94 of the Constitution). It 
includes the Courts of First Instance, Courts of Appeal, the Federal Supreme Court and the UAE 
Public Prosecutors. 
2.8.  The Constitution allows each of the seven em irates the right to choose either to participate in 
the federal judicial system or maintain its inde pendent system. Four emirates (Sharjah, Ajman, 
Fujairah, and Umm Al-Quwain) follow the federal judicial system, while Abu Dhabi, Dubai and Ras al-Khaimah maintained their own independent system. Similar to the federal judicial system, Dubai 
also has Courts of First Instance, Courts of Appeal and a Court of Cassation – which is the 
supreme judicial body. Abu Dhabi, established a Commercial Court in May 2008  (the only one in 
the UAE) to respond to the needs of the expanding business sector in the emirate.
6 
2.9.  The Federal Supreme Court is the highest fede ral judicial authority. Th e rulings of the Federal 
Supreme Court are final and binding on all. It is governed by a president and five judges, who are 
appointed by a decree issued by the President of th e UAE after the approval of  the FSC. It acts as 
an appellate court with respect to the decisions of the lower courts and at the same time ensures 
that the lower courts apply and interpret the law consistently. The judges are responsible for 
deciding if federal laws are constitutional; mediating between inter-emirate disputes; and trying cases involving cabinet and senior federal officials. 
2.10.  The Court of First Instance has general juri sdiction and includes the Civil Court, Criminal 
Court, and Shariah Court. The Shariah Courts handle cases related to divorce, inheritances, child custody, child abuse, and guardianship of mino rs. Following judgement by the Court of First 
Instance, parties have the right to appeal to the Court of Appeal on factual and/or legal grounds. 
Following judgement by the Court of Appeal, aggrieved parties have the right to appeal to the 
Court of Cassation. 
2.11.  Each emirate has a local executive council f unctioning in parallel and in coordination with 
the Federal Government. The emirates Abu Dhabi,  Dubai, Ras al-Khaimah, Sharjah, Ajman and 
Umm al-Quwain have Executive Councils with different departments working like ministries. In addition, Abu Dhabi and Sharjah have a National Consultative Council which functions like the FNC. 
Other emirates use the diwan – the ruler's office, through which the concerns of citizens are 
submitted to their governments. 
2.2  Trade Policy Objectives 2.12.  As stated in the last review, the most important goal of the Government is to attain 
balanced and sustainable economic growth by cr eating a business-friendly environment through 
economic reforms, a sound foreign trade policy regime, development of national industries, 
innovation and R&D, promotion of  exports, promotion of investment, regulation of competition, 
promotion of small and medium enterprises, prot ection of consumers and intellectual property 
rights, and diversification of the economy.
7 
2.13.  The Government of the UAE seeks to attain sustainable development through the 
implementation of UAE Vision 2021.8 Trade is one of the essential elements of the strategy. In line 
with the strategy, the following initiatives are pursued: 
 diversification of the economy (including the diversification of income sources, 
investments in the non-oil sector, and expansion in trade infrastructure); 
 creation of an enabling environment for trade and investment, in particular in the new 
economic sectors such as aerospace and technology; 
 enhancement of competitiveness in foreign markets; and 
 development and promotion of commercial diplomacy with other countries.  
                                               
6 For more information see emir ate of Abu Dhabi – Judicial De partment online  information: 
www.adjd.ae . 
7 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Section II(3) and (4). 
8 See UAE online information, "UAE Vision 2021". Viewed at: http://www.vision2021.ae/en/our-vision  
[November 2015]. WT/TPR/S/338 • United Arab Emirates 
 
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  2.14.  Between 2012 and 2014, the non-hydrocarbo n sector grew at an average annual rate of 
5.6%, with the growth rates for: the manufacturing  sector growth of 3.3%; electricity, gas and 
water of 7.2%; and transport, storage and communications of 4.1%. 
2.15.  Individual emirates create their own stra tegy within the framework of the overall federal 
plan, for example, Abu Dhabi developed its long-term plan – Economic Vision 2030.9 Strategies at 
the emirates level are expected to work towards guaranteeing and enhancing the position of the UAE; for example, extensive investment in air and sea transport infrastructure (for both 
passengers and freight) at the emirates level would contribute to achieving the sustainable 
development goal of the UAE as a whole.  
2.16.  The main trade-related laws and regulations of the UAE are presented in Table 2.1. Table 2.1 Main trade-related laws and regulations in the UAE 
Area Legislation 
Tariff - Common Customs Law for GCC States of 2002 
- Federal Law No. 8 of 2015 on the Federal Customs 
Authority 
Customs regulations; import and export 
procedures; rules of origin - Common Customs Law for GCC States of 2002 
- Unified Guide for Customs Procedures at First Points of 
Entry of 2015 
- Decision of the Supreme Council of the GCC regulating 
the customs procedures for the establishment of the 
customs union, 21-22 December 2002 
Commercial companies law -Federal Company Law No. 2 of 2015 
Regulation of commercial agencies (exclusive 
distribution rights) - Federal Law No. 18 of 1981 concerning the organization 
of commercial agencies, as  amended by Federal Acts 
No. 14 of 1988, No. 13 of 2006 and No. 2 of 2010 
Commercial register  -Federal Law No. 5 of 1975 
Trade  - Federal Law No. 13 of 2007 on Commodities Subject to 
Import and Export Control Procedures 
Civil transactions (Civil Code)  -Federal Law No. 5 of 1985 
Commercial transactions  -Federal Law No. 18 of 1993 
Contingency trade measures  - Federal Decree No. 7 of 2005 promulgating the GCC 
Common Law on Anti-Dumping, Countervailing Measures and Safeguards 
Government procurement  - UAE Federal Order No. 16 of 1975 (the public tenders 
law) 
- Ministerial Decision No. 20 of 2000 on Administration of 
Contracts System 
- Federal Law No. 7 of 1976 establishing the State Audit 
Institution 
- The Cabinet Resolution No. 32 of 2014 on procurement 
and warehouse management re gulations at the Federal 
Government 
- The Resolution of the Ministerial Council for Services 
No. 85/4m/2 of 2015 adopting the GCC Common Rules 
giving preference in governme nt procurements to national 
products of GCC Countries  
Regulation of industrial affairs  -Federal Law No. 1 of 1979 organizing industrial affairs 
Intellectual property rights - Federal Law No. 7 of 2002 concerning copyrights and 
neighbouring rights as amended by Law No. 32 of 2006 
- Federal Law No. 37 of 1992 on trademarks as amended 
by Law No. 8 of 2002 
- Federal Law No. 17 of 2002 on the industrial regulation 
and protection of patents, in dustrial drawings and designs 
as amended by Law No. 31 of 2006 
Pharmaceutical professi on and pharmaceutical 
companies - Federal Law No. 4 of 1983 on the Pharmaceutical 
Profession and Pharma ceutical companies 
                                               
9 See The Government of Abu Dhabi, The Abu Dhabi Economic Vision 2030 . Viewed at: 
https://www.ecouncil.ae/Publ icationsEn/economic-vision-2030-full-versionEn.pdf  [November 2015]. WT/TPR/S/338 • United Arab Emirates 
 
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  Area Legislation 
Financial services  - Federal Law No. 8 of 2004 regarding Financial Free Zones 
- Federal Law No. 10 of 1980 concerning the Central Bank, 
the monetary system and organization of banking 
- Federal Law No. 4 of 2000 (Stocks and Commodities 
Authority) 
-Federal Law No. 6 of 2010 regarding Credit Information 
Insurance services -Federal Insurance Law No. 6 of 2007 
Telecommunications 
 - Federal Law by Decree No. 3 of 2003 regarding the 
organization of the telecommunication sector, the 
amended Federal Law of 1991, and the Executive Order 
of the Supreme Committee No. 3 of 2004 
Postal services -Federal Law No. 4 of 1985 and Federal Law No. 8 of 2001 
Legal services - Federal Law No. 23 of 1991 concerning the practice of the 
advocate profession and am ending laws, respectively, 
No. 20 of 1997, and No. 5 of 2002 
Information technology  - Federal Law No. 1 of 2006 concerning Electronic 
Transactions and E-Commerce 
Consumer protection  - Federal Law No. 24 of 2006 concerning Consumer 
Protection 
Source: Information provided by the UAE authorities. 
2.17.  In March 2013, the Ministry of Foreign Tr ade was dissolved through a presidential decree 
and its tasks, rights and obligations were transfer red to the Ministry of Economy. The Ministry of 
Economy is now able to propose to the Government policies to enhance trade and promote exports 
to foreign markets. It builds contacts and negotiates treaties and agreements on trade with foreign countries, and monitors their implementation. The Mi nistry also represents the UAE in exhibitions 
and regional and international conferences relate d to foreign direct investment, and works to 
create an attractive investment environment. The ministry is also responsible for the development of  the national economy, the creation of a pro- business environment that contributes to achieving 
balanced and sustainable development of the country, the enactment and modernization of 
economic legislation, the development of nation al industries and exports, the promotion of 
investment, the regulation of competition and the small and medium enterprises (SMEs) sector, the protection of consumer and intellectual property rights, and the implementation of policies to 
diversify the economy. H.E. Sultan bin Saeed Al Mansouri is the Minister of Economy. 
2.18.  The Federation of UAE Chambers of Commerce and Industry, which is the umbrella 
organization for all the Chambers of Commerce and Industry, represents the private sector in the 
trade policy formulation process. Each emirate has its individual Chamber of Commerce and 
Industry. The individual ch ambers of the emirates are important ports of call for those wishing to 
do business in the country. The mission of the cham bers is to represent, support, and protect the 
interests of the business community in the emirat es. The chambers act as a liaison between the 
business community and the Government, and provide services like company and trade 
registration, training, information sharing, and liaison with businesses from abroad. Furthermore, the chambers are assigned various activities such as conducting research, disseminating 
information related to commerce and industry, providing information on investment opportunities 
in the country, issuing and authenticating certificates of origin and other commercial documents, and overseeing qualities and standards of goods.  
2.3  Trade Agreements and Arrangements 
2.3.1  WTO 2.19.  The UAE had been a contracting party to the GATT since 1994 and became a member of the 
World Trade Organization (WTO) in April 1996. The UAE is a party to the Information Technology 
Agreement. The UAE is neither a party nor an observer to the Government Procurement 
Agreement and (as at end-February 2016). The UA E ratified the Trade Facilitation Agreement 
under Decree No. 39 of 8 March 2016 and, at that date, was in the process of preparing the WT/TPR/S/338 • United Arab Emirates 
 
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  deposition of its instrument of acceptance to th e WTO. The UAE has been involved in one dispute 
under the WTO Dispute Settlement Mechanism as a third party.10 
2.20.  In September 2015, the UAE notified11 Federal Decree No. 7 of 2005, adopting the GCC 
Common law on anti-dumping, countervailing measures and safeguards, under Articles 32.6, 18.5 
and 12.6 of the WTO Agreement on Subsidies and Countervailing Measures, the Agreement on the 
Implementation of Article VI of GATT 1994 (a nti-dumping), and the Agreement on Safeguards 
respectively. The institution responsible for contin gency trade remedies in the territory of the UAE 
is the Directorate of Anti-Dumping under the Mini stry of Economy. At the end of February 2016, 
the UAE had never initiated or imposed any anti-dumping, countervailing or safeguards measures.
12 The GCC Common Law of 2003, as well as its amended version of 2010 and the Rules 
of Implementation, currently empowers the GCC technical secretariat to conduct trade remedy 
investigations and to apply trade remedy measures through the relevant committees, inter alia , 
the GCC Permanent Committee and the GCC Indu strial Committee in all GCC members.  
2.21.  The UAE Ministry of Economy is currently preparing a Federal Law on anti-dumping, 
countervailing measures and safeguards in line with the 2010 amendments to the GCC Common 
Law. This law will be implemented and administered at the national level by the Directorate of Anti-Dumping in the Ministry of Economy. The Federal Law empowers the Directorate of Anti-
dumping to operate both: (1) independently to conduct trade remedy investigations; and (2) in 
support of GCC investigations when the GCC Common Law and Rules of Implementation are applied. 
2.22.  UAE applies MFN treatment to all WTO Members except Israel. There is no discrimination 
between WTO Members and non-members in relation to GCC customs tariffs. 
2.23.  As reported in the last TPR, the WTO National Committee (NC) supports the UAE negotiating 
team at the current WTO negotiations as an advi sory body. The NC represents various dominant 
players in the economic and trade sector of the country. The NC has five sub-committees (national 
technical teams), namely, market access for agriculture and non-agricultural products, intellectual property rights, protection of domestic production, trade in services, and trade facilitation and 
government procurement. The Committee is headed by the Minister of Economy. The NC presents 
the UAE's views and proposals on various issues under negotiations at the WTO with a view to maximizing trade gains and preserving its rights. The national technical team on trade facilitation presented to the NC the commitments of the UA E under category A of the trade facilitation 
agreement which was approved by the NC and th e ministerial council. Category A commitments 
were notified to the WTO and issued in document WT/PCTF/N/ARE/1 dated 2 June 2015. After the ministerial conference in Bali the UAE Ministerial Council approved the Trade Facilitation 
Agreement which was ratified on 8 March 2016 under Decree No. 39. 
2.24.  In the current multilateral negotiations, NA MA and services liberalization are priority areas 
for the UAE. The UAE submitted a proposal to eliminate tariffs and non-tariff barriers on raw 
materials from earth (such as primary aluminium) and from plant extraction, which are used and 
processed by manufacturing industries.
13 In the area of services, the UAE submitted its initial 
offer.14 
2.25.  Notifications to the WTO by the UAE between March 2012 and November 2015 are listed in 
Table 2.2. 
                                               
10 Canada – Anti-Dumping Measures on Imports of Ce rtain Carbon Steel Welded Pipe from the Separate 
Customs Territory of Taiwan, Penghu , Kinmen and Matsu, Dispute DS482. 
11 Notification contained in document G/ADP/N/1/ARE/2, G/SCM/N/1/ARE/2, and G/SG/N/1/ARE/2, 
dated 28 September 2015. 
12 The UAE regularly notified the WTO relevant Committees under Article 25.11 of the Agreement on 
Subsidies and Countervailing Measures and 16.4 of the Anti-dumping Agreement that no countervailing or anti-
dumping measures had been taken during the period under review. 
 
13 WTO documents TN/MA/W/37, 20 May 2003; TN/MA/W/37/Add.1, 28 May 2004; TN/MA/W/37/Add.2, 
21 April 2005; TN/MA/W/37/Add.3, 16 May 2006; TN/MA/W/37/Add.4, 26 May 2006; 
TN/MA/W/37/Add.4/Rev.1, 3 May 2007; and TN/MA/W/37/A dd.5, 25 July 2008. In addition, the UAE with 
Australia in TN/MA/W/37/Add.6, 23 March 2009, and TN/MA/W/37/Add.7, 7 January 2007. 
14 WTO document TN/S/O/ARE, 4 July 2005. WT/TPR/S/338 • United Arab Emirates 
 
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  Table 2.2 Notifications to th e WTO, March 2013-August 2015 
WTO Agreement Description of 
requirement Most recent notification Comment 
Agreement on Agriculture 
 Domestic support G/AG/N/ARE/7, 26.03.2015 Table DS:1 and 
supporting tables for 
2002-13 
  G/AG/N/ARE/8, 22.06.2015 Table DS:1 and 
supporting tables for 2014 
 Export competition G/AG/N/ARE/6, 23.01.2015 Table ES:1 for 2002-
13 
  G/AG/N/ARE/9, 22.06.2015 Table ES:1 for 2014 
Agreement on Implementation of GATT Article VI (Anti-dumping) 
    
Article 16.4 Anti-dumping G/ADP/N/252, 16.12.2013 
G/ADP/N/244, 13.06.2013  
G/ADP/N/265, 12.12.2014 No anti-dumping or 
countervailing 
measures have been 
taken during this 
period 
 
Article 18.5 Anti-dumping G/ADP/N/1/ARE/2, 28.09.2015 Legislation in 
preparation 
Agreement on Subsidies and Countervailing Measures 
Article 32.6 Subsidies and 
countervailing measures G/SCM/N/1/ARE/2, 28.09.2015 Legislation in 
preparation 
Agreement on Safeguards 
Article 12.6 Safeguards G/SG/N/1/ARE/2, 28.09.2015 Legislation in 
preparation 
Agreement on Sanitary and Phytosanitary Measures 
Article 7, Annex B Sanitary and 
Phytosanitary Measures   G/SPS/N/ARE/23-66 G/SPS/N/ARE/22/Add.1 
G/SPS/N/ARE/25/Add.1 G/SPS/N/ARE/32/Corr.1 Emergency and 
regular measures 
Agreement on Technical Barriers to Trade  
 Technical regulations, 
standards G/TBT/N/ARE/96-294 
G/TBT/N/ARE/198 and Corr.1 G/TBT/N/ARE/205 and Corr.1 G/TBT/N/ARE/209 and Corr.1  
Regional Trade Agreements  
Paragraph 4(a), 
Enabling Clause;  Article V:7(a), GATS   WT/COMTD/N/45/Rev.1 
S/C/N/807/Rev.1, 14.07.2015 GCC-Singapore RTA 
Source: WTO Secretariat. 
2.3.2  Regional and preferential agreements 
2.3.2.1  Cooperation Council for the Arab States of the Gulf 
2.26.  The UAE is a founding member of the Cooperation Council for the Arab States of the Gulf 
(GCC).15 The highest authority of the organization is the Supreme Council of the GCC, which is 
represented by the heads of the member States.16 
2.27.  GCC member States established a free trade area exempting from customs duties all goods 
originating from within the GCC. As indicated in the previous TPR, the UAE (as other GCC member 
States) applies the common external tariff of 5% on most products and operates common laws on 
                                               
15 The GCC was established as a political and economic union on 25 May 1981 in Abu Dhabi by the 
Kingdom of Bahrain, the State of Kuwait, Oman, Qatar,  the Kingdom of Saudi Arabia and the United Arab 
Emirates. The Unified Economic Agreement between the countries of the GCC was signed on 11 November 1981 in Abu Dhabi. For more information see Cooperation Council for the Arab States of the Gulf online information. Viewed at: http://www.gcc-sg.org/eng/  [November 2015]. 
16 For more information on the orga nizational structure of the GCC see the Cooperation Council for the 
Arab States of the Gulf online information,  "The Organizational Structure". Viewed at: http://www.gcc-
sg.org/eng/index2beb.html?action=Sec-Show&ID=2 . WT/TPR/S/338 • United Arab Emirates 
 
- 26 - 
 
  customs procedures and valuation. Each member State has the right to declare some products as 
prohibited and some as restricted (Section 3.1.6). 
2.28.  In January 2008 the common services market was created. The GCC also has common 
legislation in several other areas including contingency measures, as well as SPS issues (including 
veterinary quarantine and plant quarantine), and standards and technical requirements. 
2.3.2.2  Pan-Arab Free Trade Area Agreement (PAFTA) 2.29.  The UAE is a member of PAFTA; the PAFTA agreement entered into force at the beginning of 
1998.
17 The objective of the Agreement is to create an Arab Free Trade Area, also known as the 
Greater Arab Free Trade Area or the Pan-Arab Free Trade Area.18 The aim was to form the free 
trade area by 2008 through gradual elimination of trade barriers and an annual reduction of customs duties by 10%. 
2.30.  To speed up the liberalization process, the elimination of all tariffs among the PAFTA 
members was enforced in 1 January 2015 with the exception of some products for reasons such as public health, safety and morals, and protection of the environment. The work on elimination of 
numerous non-tariff barriers, such as standards, customs and administrative procedures at the 
borders, and transit fees are being pursued. Th e implementation of the Agreement is under the 
responsibility of the Economic and Social Council of the League of Arab States which coordinates 
its economic integration. 
2.3.3  Other agreements and arrangements 2.31.  At the GCC Leaders' Summit in December 2005, it was announced that all agreements after 
this date would be negotiated as a group.
19 Since then, the GCC has concluded negotiations of free 
trade agreements with the European Free Trade Association (EFTA) States and Singapore. 
Negotiations with a number of other countries are ongoing. 
2.3.3.1  EFTA-GCC Free Trade Agreement 
2.32.  The EFTA-GCC Free Trade Agreement entered into force on 1 July 2015. 
2.33.  The GCC-EFTA Free Trade Agreement covers a broad range of areas including trade in 
goods, trade in services, government procurement and competition. It was agreed that the GCC 
will eliminate most customs duties after the transitional period of five years. On services, the GCC 
members have taken commitments in 11 GATS sector s. Industrial goods, including fish and other 
marine products of GCC origin, benefit from duty -free access to the respective markets of the 
EFTA States as of the entry into force of the Agreement. The Agreement also provides for tariff 
concessions on processed agricultural products. Basi c agricultural products are covered by bilateral 
agricultural agreements which form part of the FTA. 
2.34.   According to the authorities, the rules of origin are based on the European model and allow 
for a value-added rule to be used alternatively for almost all of the items which are not wholly 
obtained (Section 3.1.3). 
2.35.  According to the authorities, the Chapter on  trade in services has a similar structure to the 
WTO General Agreement on Trade in Services (GATS). It covers all four modes of supply of a 
service, as defined under the GATS, and addresse s different services sectors. The Chapter deals 
with general disciplines, whereas more specific provisions for certain sectors or aspects are contained in Annexes (such as on Mutual Recognit ion, Movement of Persons, Financial Services 
and Telecom). 
                                               
17 WTO document WT/REG223/N/1 (Notification under Article XXIV of GATT), 20 November 2006. 
18 The 17 member States of PAFTA – Algeria, Kin gdom of Bahrain, Egypt, Iraq, State of Kuwait, 
Lebanon, Libya, Morocco, Oman , State of Palestine, Qatar, Kingdom of Saudi Arabia, Sudan, Syria, Tunisia, 
United Arab Emirates, and Yemen – signed the Pan-Arab Free Trade Area Agreement on 19 February, 1997. 
The Agreement came into force on 1 January 1998. 
19 Two GCC members (Bahrain and Oman) have FTAs on  an individual basis with the United States. WT/TPR/S/338 • United Arab Emirates 
 
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  2.36.   In the area of intellectual property ri ghts (IPRs) and investment, the Parties essentially 
confirm the WTO TRIPS Agreement. They commit to concluding negotiations on an Annex related to IPRs not later than two years after the entry into force of the Agreement. In the meantime, a special consultation mechanism is foreseen in case of problems in the area of IPRs affecting trade 
conditions between the Parties. On investment, there are no specific provisions contained in the 
Agreement on Investment, but a side letter, forming part of the Agreement, sets forth the Parties' 
obligation to conduct negotiations on business establishment in non-services sectors within two 
years of the entry into force of the Agreement. 
2.37.   On government procurement (GP), the Parties agreed to mutually open their government 
procurement markets. The government entities in cluded and the procurement thresholds are listed 
in annexes to the Agreement. The provisions of th e Chapter on GP deal with the procedures to be 
followed by a government entity which is procuring goods, services and construction services 
above certain thresholds. According to the authorities, the Chapter has a similar structure to the WTO Government Procurement Agreement. 
2.38.   The Chapter on Dispute Settlement allows for the settlement of disputes arising under the 
Agreement between one or more EFTA States and the GCC to be settled amicably or through arbitration. Furthermore, the Agreement includ es provisions on anti-dumping, state trading 
enterprises and subsidies, as well as sanitary and phytosanitary measures and technical 
regulations.
 20 
2.3.3.2  GCC-Singapore Free Trade Agreement (GSFTA) 2.39.  The GSFTA entered into force on 1 January 2015.
21 The Agreement covers trade in goods 
and services, customs procedures, technical regulations and standards, rules of origin, e-
commerce, and government procurement.22 
2.40.  The GSFTA's Trade in Goods Chapter provides for immediate comprehensive tariff 
eliminations by Singapore for 100% of imports originating in the GCC. Since it is a reciprocal 
agreement, the GCC will also eliminate tariffs for 99% of imports originating in Singapore. The tariffs on the remaining 1% of Singapore originating imports will be removed 5 years after the 
entry into force of the Agreement. Goods shall be deemed originating goods of a Party if they are 
(a) wholly obtained or produced in the territory of the exporting Party; or (b) have attained a qualifying value added of not less than 35% based on the ex-works price.
 23 
2.41.  On services, the GSFTA builds on th e commitments made by Singapore and the GCC 
countries at the multilateral level, in particular, the WTO General Agreement on Trade in Services 
(GATS). Specifically, Singapore and the GCC have committed to liberalize various services sectors beyond its WTO commitments. Broadly, the schedule of specific commitments include the following 
sectors: business services: professional services, computer and related services, rental and others; 
communication services; construction and relate d engineering services; distribution services; 
educational services; environmental services; financial services; health related and social services; 
tourism; recreational, cultural and sporting services; and transport services.
24 
2.3.3.3  Negotiations 2.42.  The GCC is currently negotiating free trade ag reements with Australia, China, the EU, India, 
Japan, the Republic of Korea, MERCOS UR, New Zealand, Pakistan, and Turkey. 
                                               
20 For more information see EFTA online information. Viewed at: http://www.efta.int/free-trade/free-
trade-agreements/gcc . 
21 For more information see Singapore Government online information at: 
http://www.fta.gov.sg/fta_C_gsfta.asp?hl=49 . 
22 WTO documents WT/COMTD/N/45/Rev.1 and S/C/N/807/Rev.1, 14 July 2015 – Notification under of 
the Enabling Clause, Paragraph 4(a) and GATS, Article V:7(a). 
23 For more information see Singapore Gove rnment online information. Viewed at: 
http://www.fta.gov.sg/fta_C_gsfta.asp?hl=49 . 
 
24 For more information see Singapore Government online information at: 
http://www.fta.gov.sg/fta_C_gsfta.asp?hl=49 . 
 WT/TPR/S/338 • United Arab Emirates 
 
- 28 - 
 
  2.43.  As at end-November 2015, the UAE has signed 92 agreements on avoidance of double 
taxation with different countries (35 with European countries; 26 with Asian countries; 11 with Arab countries; 12 with African countries; and 8 with North and Latin American countries). 
2.3.3.4  Other prefer ential arrangements 
2.44.  The UAE does not grant Generalized System of Preferences (GSP) treatment to any 
countries; while it is a beneficiary of GSP treatment provided by Australia and Turkey, as well as the Russian Federation, Belarus and Kazakhstan.
25 
2.4  Investment Regime 
2.45.  The Government of the UAE has developed an economic agenda that aims to enhance the 
role of the private sector, liberalize its econom y, and diversify its product and export base. The 
UAE Vision 2021 focuses on the UAE becoming the economic and commercial capital for more than 
two billion people by transitioning to a knowledge-based economy, promoting innovation and 
research and development, strengthening the regulatory framework for key sectors, and encouraging high value-adding sectors. The aim is to improve the country’s business environment 
and increase its attractiveness to foreign investment. 
2.46.  Vision 2021 also aims for the UAE to be among the best in the world in entrepreneurship as 
this plays a key role in unlocking the potential of nationals and enables them to be a driving force 
of the UAE’s economic development through small and medium enterprises in the private sector. 
Furthermore, Vision 2021 also aims to instil an en trepreneurial culture in schools and universities 
to foster generations endowed with leadersh ip, creativity, responsibility and ambition. 
2.47.  The Ministry of Economy works to unify and facilitate procedures for the registration and 
licensing of foreign investment projects. The Ministry established a comprehensive database on 
investment interests and submits periodic reports to the Federal Council of Ministers about the investment environment in the country. Officials monitor and assess the extent of foreign 
investment and the annual flow of investment. 
2.48.  There are four major federal laws affecting foreign investment in the UAE: the Companies 
Law, the Commercial Agencies Law, the Industry Law, and the Government Tenders Law. Although 
the legal framework in the UAE favours local over foreign investors, investment laws and 
regulations are being reconsidered and supplemented to make the investment regime more transparent and investor-friendly, including the introduction of a new Foreign Direct Investment Law. 
2.49.  On 1 July 2015, Federal Law No. 2 of 2015 concerning Commercial Companies entered into 
force. This Law replaced the Federal Companies Law No. 8 of 1984.
26 According to its Article 2, the 
objective of the Law is to contribute to the development of the working environment and capacities 
of the State and its integration into a global ma rket and business environment, specifically, to 
raise the levels of company governance, supporting foreign investment, protection of shareholders and promotion of social responsibility of companies. The new law introduced several specific 
amendments. The amendments include: 
 recognition of the concept of holding companies – all limited liability companies (LLCs) 
and joint-stock companies (JSCs) may now be established as holding companies in order to conduct their activities through relevant subsidiaries; 
 recognition of the Companies Registrar – the Ministry of Economy shall issue a 
regulation setting out the activities and functions of the Companies Registrar; 
                                               
25 See WTO Secretariat online inform ation, "Preferential Tr ade Arrangements – United Arab Emirates". 
Viewed at: http://ptadb.wto.org//Country.aspx?code=784 . 
26 For more information see PwC (2015), Legal Insights from PwC Legal Middle East , "New UAE 
Commercial Companies Law: Legal refo rms to strengthen the legal and regu latory landscape of doing business 
in the UAE", May 2015. Viewed at: https://www.pwc.com/m1/en/tax/docu ments/new-commercial-company-
law-in-uae.pdf . WT/TPR/S/338 • United Arab Emirates 
 
- 29 - 
 
   procedures for pledging shares – the new law allows shareholders in LLCs to pledge 
their shares, and such pledges must be made in accordance with the company's* memorandum; 
 removal of the limit on the number of directors appointed to an LLC; 
 expert valuation of shares in kind (i.e. non-cash);  
 corporate governance; 
 social responsibility; 
 strategic partners; 
 crimes resulting from violating the Companies Act and reconciliation; 
 the acquisition of companies; and 
 the requirement to rotate auditors nominate d by the board of directors/managers and 
approved by the general assembly of the relevant companies every three years. 
2.50.  The new law applies to commercial companies established in the UAE, as well as to branch 
offices of foreign companies operating in the UAE. According to the new law, companies 
established in the UAE are required to have a minimum of 51% UAE national ownership. 
Exceptions apply to free zones, where 100% foreign ownership is allowed. 
2.51.  Foreign companies may also open branches or representative offices, where 100% foreign 
ownership is allowed. These branches and representatives can carry out only those activities for 
which they were licensed by each emirate. Bran ch offices of foreign companies are required to 
have a national agent which must be a UAE nati onal or company with 100% national ownership. 
However, the UAE Government is considering relaxing the requirement of such restrictions in 
certain industry sectors under a new Foreign Investment Law. 
2.52.  The hydrocarbon sector is also excluded from the provisions of the Federal Companies Law. 
Furthermore, some companies are exempted from the provisions of the Law, including: 
 companies operating in certain oil, gas or power sectors in which the federal or local 
government directly or indirectly holds 25%;  
 companies excluded by resolution of the Federal Cabinet; and 
 companies wholly owned by federal or local government and companies held in full by 
such companies.
27 
2.53.  The provisions of the Commercial Agencies Law require that foreign principals distribute 
their products in the UAE only through exclusive commercial agents that can be UAE nationals or 
companies wholly owned by UAE nationals. The fore ign entity can appoint one agent for the entire 
UAE or for a particular emirate or group of emirates (Section 3.1.1). 
2.54.  The Federal Industry Law stipulates that industrial projects must have 51% UAE national 
ownership. The law also requires projects to be  managed by a UAE national or have a board of 
directors with a majority of UAE nationals. There are some exemptions from the law, and, as is the case with the Federal Companies Law, these exempt ions are provided for projects related to the 
extraction and refining of oil, natural gas, and other raw materials. 
2.55.  The Federal Law No. 1 of 1979 on organizing industrial affairs and governing investment in 
the industrial sector (excluding those for free zones) provides for incentives for industrial companies. However, the only incentive actually provided to industrial companies is the right to 
import all materials included in the industrial project's licence duty free. 
                                               
27 For more information see PwC (2015), Legal Insights from PwC Legal Middle East , "New UAE 
Commercial Companies Law: Legal refo rms to strengthen the legal and regu latory landscape of doing business 
in the UAE", May 2015. Viewed at: https://www.pwc.com/m1/en/tax/docu ments/new-commercial-company-
law-in-uae.pdf . WT/TPR/S/338 • United Arab Emirates 
 
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  2.56.  There have been no changes to the land ownership regime since the last TPR. Ownership of 
land is restricted to UAE nationals, although there are exceptions which vary from emirate to emirate. For example, in Abu Dhabi, under the relevant law
28 and its amendments, GCC nationals 
may only own land in special "investment areas" (of which there are currently 3 in Abu Dhabi) and 
non-UAE nationals may own floors of buildings in any investment zones. According to a special 
resolution29, non-UAE natural or juristic persons have the right to own, buy, sell, rent, mortgage 
and invest in investment areas. They may hold “mustaha” rights for up to 50 years (subject for 
renewal for a similar duration) and sign usufruct (similar to lease) contracts for up to 99 years in 
properties located inside investment areas. Both the right of usufruct and mustaha are essentially 
forms of long-term lease with the primary differen ce being that the right of mustaha includes the 
right to build or develop upon the property of an other, whereas the right of usufruct does not. 
2.57.  In Dubai, under the relevant law30, GCC and other non-UAE nationals have a right to own 
freehold or leasehold property. However, this policy does not give non-GCC property owners permanent residence visas or an automatic right to work in the emirate. They are only allowed to 
hold an interest over land in the form of freehold or leasehold interest for 99 years in designated 
areas, of which there are currently more than 30 in Dubai.  Other emirates apply different specific 
regulations on property ownership. 
2.58.  According to the authorities, if the in vestor acquires a property with a value over 
Dh 1 million, the investor will be entitled to a residency visa for 6 months subject to renewal provided that they retain the property. 
2.59.  Among others, a new draft Insolvency Law was approved by the Cabinet in July 2015. This 
law will help to unlock more foreign investment by reducing uncertainty in the existing federal 
bankruptcy laws. One of the key elements in th e new draft law is the decriminalizing of the 
bouncing of cheques, which will provide greater encouragement to entrepreneurial businesses, by 
affording them greater protection in the case of business failure.
31 The draft will be referred to the 
Federal National Co uncil for approval. 
2.60.  In February 2012, the UAE Government issued the Competition Law No. 4 of 2012 with the 
aim of providing a comprehensive regime covering  merger controls, prohibitions on restrictive 
agreements, and prohibitions on abuse of a dominant market position. 
2.61.  In June 2014, the FNC approved the Fede ral Law No. 2 of 2014 on Small and Medium-Sized 
Enterprises. As stated by the authorities, the law supports Emirati-owned small and medium 
enterprises and will play a significant role in promoting sustainable economic development to 
facilitate the promotion and development of thes e enterprises. According to the law, federal 
departments have to award at least 10% of their purchases of goods and services to small and 
medium enterprises. Government-related firms, in  which the Federal Government holds stakes of 
more than 25%, must also ensure at least 5% of their contracts are with SMEs. The law categorizes SMEs, establishes a dedicated council and determines incentives to be offered to small 
business owners of small and medium-sized enterp rises. Emirati entrepreneurs falling under the 
small and medium classification will benefit from a number of incentives offered by the council, including credit and funding facilities, financing, marketing and reduced licensing costs. Emirati business owners will also benefit from land grants for industrial or agricultural purposes and 
receive support for promoting their companies at exhibitions around the world. The law also 
includes additional benefits to inventors, patent owners and companies that invest in research and 
development.
32 However, the law still lacks a specific definition of what constitutes an SME. 
2.62.  In June 2015 the UAE Government announced the limited opening of telecoms operator 
"Etisalat" to foreign investors. These new regulations allow for legal persons, including institutions, 
                                               
28 Law No. 19 of 2005, as amended, including by Law No. 3 of 2015. 
29 No. 64 of 2010. 
30 Property Law No. 7 of 2006. 
31 For more information see The Economist Intelligence Unit, 2015 Country Report , August 2015. Viewed 
at: www.eiu.com . 
32 For more information see U. S. Department of State, 2014 Investment Climate Statement . Viewed at: 
http://www.state.gov/documents/organization/227510.pdf . 
 WT/TPR/S/338 • United Arab Emirates 
 
- 31 - 
 
  in the UAE, or UAE government agencies, or other legal persons, to own shares in Etisalat. Also, 
non-national individuals and entities may own up to 20% of Etisalat Group’s shares.33 
2.63.  In September 2015, the UAE announced that from early 2016 labour reforms would be 
enforced. As a result, a new system will be crea ted under which workers' contracts will be lodged 
with the labour ministry rather than with employ ers. The new provisions will allow foreign workers 
to terminate their contracts and change employer.34 The new system will also stop so-called 
"substitution", under which foreign workers sign one contract before they leave their home country 
and are compelled to renegotiate wages when they arrive in the UAE.35 
2.64.  As at end-November 2015, 43 of the 55 agreements related to encouragement and 
protection of investment36 had entered into force.37 The UAE is a member of the Multilateral 
Investment Guarantee Agency. There are no restrictions on investments abroad by UAE nationals. 
2.65.  On government procurement, the Cabinet issued Resolution No. 32 of 2014 concerning the 
procurement and warehouse management regulations at the federal level. The resolution streamlines purchasing procedures and accounting methods of federal entities to ensure efficiency 
and effectiveness of the procurement process. 
                                               
33 For more information see The Economist Intelligence Unit, 2015 Country Report , August 2015. Viewed 
at: www.eiu.com . 
 
34 Before, there was a practice call ed "kafala", which regulates the entry and residence of workers, and 
also requires that workers seek perm ission from employers to change jobs. 
35 See Al-Jazeera , "UAE announces labour reforms to protect foreign workers", 29 September 2015. 
Viewed at: http://www.aljazeera.com/news/2015/09/uae-anno unces-labour-reforms-pr otect-foreign-workers-
150929143336000.html . 
36 The UAE has agreements with Algeria, Armenia, Au stria, Azerbaijan, Bangladesh, Belarus, Belgium, 
Benin, China, Comoros, Czech Republic, Egypt, Estoni a, Finland, France, Germany, Guinea, Greece, India, 
Italy, Jordan, Kenya, Republic of Korea, Kyrgyz Repu blic, Lebanon, Malaysia, Mo ngolia, Montenegro, Morocco, 
Netherlands, Pakistan, Poland,  Portugal, Romania, Russian Federation, Serbia, Singapore, Sudan, Sweden, 
Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turk ey, Turkmenistan, Ukraine, Un ited Kingdom, Uzbekistan, 
Viet Nam, Yemen. 
37 Agreements with the following 7 countries are not in force: Benin, Netherla nds, Hellenic Republic, 
Kenya, Kyrgyz Republic, Thailand, Comoro Islands. WT/TPR/S/338 • 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 and requirements 3.1.  The legal basis for customs procedures in the UAE is the Common Customs Law for GCC 
States of 2002 and the amended Federal Law No. 8 of 2015 on the Federal Customs Authority 
(FCA) which replaced Law No. 1 of 2003. Under the new law, the Board of Directors was replaced by the Commissioner of Customs with the same jurisdiction as the Board. The Commissioner of 
Customs has a ministerial-grade position and reports directly to the Cabinet of Ministers. As under 
the previous legislation, the FCA remains responsible for developing customs policy, proposing legislation, and applying customs procedures, and it has the authority to set risk management rules and charges for customs services.
1 The new law applies from 28 January 2016. In addition to 
the FCA, each emirate has its own customs department and the FCA works in cooperation with 
them in developing policy and legislation, an d in applying customs procedures. In 2015, the 
Customs Affairs Department of the GCC Secretar iat published the GCC Unified Guide for Customs 
Procedures at First Points of Entry to facilitate customs operations in the GCC member States.2 
According to the authorities, the guide is compatible with the International Convention on the Simplification and Harmonization of Customs Procedures (the Revised Kyoto Convention). 
3.2.  The UAE is a member of the World Customs Organization (since 1979), and a contracting 
party to the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures (since 2010), the International Conven tion on the Harmonized Commodity Description 
and Coding System (since 2002), and the Istanbul Convention on Temporary Admission (since 
2010).
3 The UAE notified its category A commitment s under the Agreement on Trade Facilitation 
on 2 June 20154 and ratified it on 8 March 2016. 
3.3.  The UAE has customs cooperation agreements with several trading partners, including: 
Pakistan (2006); Algeria (2007); Azerbaijan (2011); India (2012); Kazakhstan (2012); Argentina 
(2013); Armenia (2013); Maldives (2014); the Republic of Korea (2015); Morocco (2015); and the Netherlands (2015).
5 
3.4.  In 2015, the UAE was ranked 101st out of 189 economies in terms of ease of trading across 
borders with an average of six documents and 109 hours needed for importing and a cost of US$961 for a container.
6 However, as the authorities pointed out, the ranking for trading across 
borders is based on exporting plastics and articles  thereof (HS 39) to India, and importing parts 
and accessories of motor vehicles (HS 8708) from Japan, neither of which are very representative 
of trade in the UAE. Other indicators rank the UAE more highly: the World Bank Logistics 
Performance Index for 2014 ranks the UAE as 20th out of 150 economies for logistics generally and 
for customs specifically7; the World Economic Forum's Burden of Customs Procedures ranks the 
UAE as third out of 140 economies8; and the IMD customs authorities indicator ranks the UAE 7th 
out of 61 economies.9  
3.5.  Importing into, or exporting from, the UAE customs territory requires a trading licence and a 
trader code which is available from the customs department of each emirate and which applies 
                                               
1 WAM, "President issues amended law on Federal Customs Authority", 30 July 2015. Viewed at: 
http://www.wam.ae/en/home.html  [September 2015]. 
2 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) , GCC Secretariat-General, Division of 
Economic Affairs, Customs Affairs Department. Viewed at: http://sites.gcc-sg.org/DLibrary/index-eng.php   
[September 2015].  
3 WCO online information. Viewed at: http://www.wcoomd.org/en/about-us.aspx  [September 2015]. 
4 WTO document WT/PCTF/N/ARE/1, 2 June 2015. 
5 FCA online information. Viewed at: 
https://www.fca.gov.ae/e n/HomeRightMenu/Pages/ BilateralAgreements. aspx?SelectedTab=41  [September 
2015]. 
6 World Bank (2015), Doing Business 2015 , 12th edition, Washington. 
7 World Bank (2014), Connecting to Compete, Trade Logistics in the Global Economy, The Logistics 
Performance Index and Its Indicators , 4th edition, Washington. 
8 World Economic Forum (2015), The Global Competitiveness Report 2015-2016 , Switzerland, p. 357. 
9 IMF (2015), World Competitiveness Yearbook 2015 . WT/TPR/S/338 • United Arab Emirates 
 
- 33 - 
 
  throughout the UAE. To qualify for a licence the applicant must be a UAE national or a company 
established in the UAE that is 51% owned by UAE nationals. Distribution of imported goods may 
only be undertaken by trade agencies which must  be owned by UAE nationals or by companies 
wholly owned by UAE nationals. Trade agencies are required to register with the Registry of 
Commercial Agents in the Ministry of Economy. Under the Agency Laws of the UAE10, a distribution 
agreement between a foreign supplier and a local agency which is registered, or which could be registered, with the Registry of Commercial Ag ents, may provide the local agent with exclusive 
rights to import and/or distribute the goods in  the area specified under the agreement. Such a 
distribution agreement may only be terminated if  the foreign supplier or importer can present "a 
material reason justifying its termination or non-renewal". Cases for termination go first to the Commercial Agencies Committee and may be appealed to the courts.
11 
3.6.  No licence is required for trading from or to the free zones.12 Goods that are imported and 
exported to and from free zones follow the same procedures as goods imported or exported into or from the customs territory of the UAE. 
3.7.  Under the Common Customs Law of the GCC, natural and legal citizens of the GCC States 
have the right to exercise the profession of cu stoms clearance on obtaining a licence from the 
customs administration of their State. Furthermore, since 1 January 2015, the Unified Guide for 
Customs Procedures and the single point of en try principle apply to imports into the GCC. 
Therefore, goods entering any port in the GCC States should be subject to the same import 
procedures, including payments of tariffs, and, once  cleared, are free for circulation throughout the 
GCC States.
13 
3.8.  According to the authorities, under the Unif ied Guide, the documents to be attached to the 
single customs declaration for imports are the original invoice and original certificate of origin. No documents are required for goods in transit. Additional documents may be required by other 
government agencies, such as a halal slaughter certificate from an approved Islamic Centre in the 
country of origin required for an import permit issued by the Ministry of Environment and Water 
(see Sections 3.1.6, 3.3.1, and 3.3.2). 
3.9.  Although customs procedures must follow  the GCC Guidelines, the customs department of 
each emirate is responsible for applying the la w and different customs systems are used. In 2011, 
Dubai Customs launched the domestically developed electronic declaration system, Mirsal 2, which allows for the electronic presentation and clea rance of documents on a 24/7 basis. The system 
includes risk assessment systems linked with domestic and regional authorities and international 
organizations.
14 The General Administration of Customs in Abu Dhabi has a fully operational 
electronic customs declaration system (Dhabi) in al l customs centres in the emirate. The electronic 
system includes electronic payment, archiving of declarations, approval of declarations, and 
authorizations. 
3.10.  Since 2014, the Federal Customs Authority's Unified Customs Gateway has worked as an 
interface between the customs administrations of the emirates and other regulating government 
authorities. The main system has two sub-systems:  the circular system automates correspondence 
on prohibited and restricted goods from the relevant government authorities to the local customs administrations; and the authorization system works to regulate and manage the issuing of export 
and import permits from the responsible authorities. 
3.11.  In the GCC, goods are inspected and examined based on risk assessment and, under Law 
No. 8 of 2015 on the FCA, the FCA is to prep are, unify, and adopt customs risk management 
criteria and develop joint regulations to manage risks. In most circumstances, inspections take 
                                               
10 Federal Law No. 18 of 1981, as amended by Law No. 14 of 1988, Law No. 13 of 2006, and Law No. 2 
of 2010 
11 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Section 3, paragraph 13; and Culver, M., 
O'Connor, J. (2014), Distributing products in the UAE – beware the sting in the tail , CMS Cameron McKenna. 
Viewed at: http://www.lexology.com/library/detail.aspx?g=d900e5e7-aa4f-41c4-b206-65186d5f7922  
[November 2015]. 
12 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Section 3, paragraph 12. 
13 GCC Secretariat (2012), Process of the Customs Union of the C ooperation Council for the Arab States 
of the Gulf 2002-2012 , p. 20. 
14 Dubai Customs (2012), Client Guide Mirsal 2 , 29 October. Viewed at: 
http://www.dubaicustoms.gov.ae/en/Publications/Publications/DC_M2Brochure_En.pdf  [September 2015]. WT/TPR/S/338 • United Arab Emirates 
 
- 34 - 
 
  place in the presence of the owner of the goods or her/his representative although this is not 
required where the customs official suspec ts the presence of prohibited goods. 
3.12.  Since 2007, the General Administration of Customs in Abu Dhabi has operated a Golden 
Card programme for import and export companies that meet specified criteria such as a good 
compliance record. Under the programme, qualified operators can avail of simplified import 
procedures. As at 1 November 2014, there were 44 participants in the programme. According to the authorities, in 2016, the UAE will begin implementing an Authorized Economic Operator (AEO) 
programme by launching a pilot programme to be implemented by Dubai Customs in coordination 
with the FCA. The experience of Dubai Customs w ill then be used as a benchmark in order to 
implement the programme on the federal leve l by the other customs administrations. 
3.13.  The Common Customs Law of the GCC States applies specific provisions to imports of goods 
in transit, destined for warehouses, into free zones, and for re-export: 
  goods in transit are not liable for import duti es subject to providing a bank guarantee or 
refundable deposit equal to the customs duties plus charges. Transit is prohibited for 
goods subject to import prohibition or restriction, and goods infringing intellectual 
property rights; 
  a warehouse for imported goods may be established by the customs authorities and may 
be located outside the customs area. Goods imported and stored in a customs warehouse 
are not liable for payment of import duties unless released onto the domestic market. A bank guarantee or refundable deposit equal to the customs duties is required. Goods may be stored in a customs warehouse for up to 365 days after which the customs duties 
should be paid; 
  goods imported into free zones and duty-fr ee shops are not deemed to have entered the 
customs territory and are not liable for customs duties. However, goods imported into the 
customs territory from a free zone or duty-free shop are treated as foreign goods 
regardless of any local raw material they may contain; 
  a customs department may permit temporary admission of goods for up to six months 
(or up to three years for capital goods) including: heavy machinery and equipment for 
completion of projects or conducting experiments or tests related to such projects; goods for completion of processing; temporary imports for playgrounds, theatres, exhibitions, etc.; machinery and equipment imported for repair; containers and packing importing for 
refiling; animals admitted for grazing; and commercial samples for exhibitions. 
3.14.  Imports of specific goods require prior a pproval from the appropriate government agency 
before they may be imported. These goods incl ude: all alcoholic beverages; pork and pork 
products; tobacco and tobacco products; recordings; telecommunications equipment; foodstuffs; 
feedstuffs; animals and their products; firewo rks; and arms, ammuni tion, and explosives. 
3.1.2  Customs valuation 
3.15.  The UAE notified the WTO that it had "confirmed all legal, organizational and administrative 
obligations relating to implementation of Article VII of GATT 1994 and completely accomplished" its implementation.
15 Under the Common Customs Law of the GCC States, the customs value of 
imported goods is, in order of priority: the transaction value; the transaction value of identical 
goods; the transaction value of similar goods; th e deductive value; the computed value; and the 
flexible method. The UAE invoked Annex III, paragraph 3 of the Agreement on Customs Valuation and an importer may request the application of the computed value method before the deductive 
value method.
16 
3.16.  In cases where the customs authority finds the value of goods is greater than the declared 
value, customs duties are applied on the basis of the customs authority's finding and a fine may be 
levied. The importer may appeal a customs valuation to the valuation committee of the local 
                                               
15 WTO document G/VAL/N/4/ARE/1, 15 September 2014. 
16 WTO document G/VAL/2/Rev.24, 27 April 2007. WT/TPR/S/338 • United Arab Emirates 
 
- 35 - 
 
  customs administration within 15 days of the registration of the customs declaration and from 
there to the courts. Goods may be released during a dispute over customs valuation, with possible retention of samples for reference and payment of a deposit equivalent to the duties and charges. 
3.1.3  Rules of origin 
3.17.  According to the notification by the UAE to the WTO, the "United Arab Emirates does not 
have any non-preferential ruling of general application relating to rules of origin."
17 A certificate of 
origin from the original exporter is required for all imports. 
3.18.  To meet the origin criteria goods must be wholly obtained in a given country or have 
undergone substantial transformation there; substant ial transformation is based on the criteria of 
change of tariff classification, value added, and/or manufacturing or processing operations18: 
 for goods to qualify as being of GCC origin, the criteria are being wholly obtained or 
having undergone substantial transformation with 40% local value added in plants 
owned 51% or more by GCC nationals; and 
 for goods to qualify as being of PAFTA origin, the criteria are substantial transformation 
with at least 40% value added or at least 20% value added for assembly operations. 
3.19.  The rules or origin under the GCC-EFTA trade agreement are set out in Annex IV to the 
Agreement under which products must either be wholly obtained or meet other criteria which 
depend on the product concerned.19 Under the GCC-Singapore trade agreement, the rules of origin 
state that goods must be wholly obtained, have obtained value added of at least 35%, or meet product-specific rules as set out in Annex 3 to the Agreement.
20 
3.1.4  Tariffs 
3.1.4.1  Applied MFN tariff 
3.20.  The UAE applies the GCC common external tariff (CET) with most of the 7,231 tariff lines 
(8-digit level) subject to a 5% tariff and most of the remaining tariff lines duty free. Under the 
CET, each GCC member has the right to declare some products as prohibited and some as 
restricted (Section 3.1.6  , Table 3.4, and Table 3.5). Imports of about 0.4% of tariff lines are prohibited and about 0.8% are restricted, although the exact number varies based on circulars 
from various government agencies. Applied MFN tari ffs on nearly all products are either duty free 
or 5%. There are 19 tariff lines for tobacco produc ts with a tariff of 100% or a minimum weight-
based specific duty (the statistics set out below a ssume that the 100% duty is applied to these 19 
tariff lines) (Table 3.1, and Table 3.2). 
                                               
17 WTO document G/RO/N/17, 10 April 1997. 
18 Dubai Customs (2014), Rules of Origin , Second edition. Viewed at: 
http://www.dubaicustoms.gov.ae/en/ Publications/Pages/default.aspx  [September 2015]. 
19 EFTA online information. Viewed at: http://www.efta.int/free-trad e/free-trade-ag reements/gcc  
[February 2016]. 
20 Singapore Government online information. Viewed at: http://www.fta.gov.sg/ fta_C_gsfta.asp?hl=49  
[February 2016]. WT/TPR/S/338 • United Arab Emirates 
 
- 36 - 
 
  Chart 3.1 Frequency distribution of MFN tariff rates, 2015 
(11.2%)
(0.1%)(87.3%)
(0.3%)(1.2%)
0102030405060708090100
01,0002,0003,0004,0005,0006,0007,000
Duty free 2.5b 5.0 100.0c ProhibitedNumber of tariff linesaPer cent
Cumulative per cent
Number of lines (% of total)
 
a The total number of ad valorem lines is 7,214, 18 non- ad valorem  lines, and 89 prohibited lines. 
b The result of sub-line averages  of 5% and 0% (ITA Agreement). 
c Includes 2 lines with an ad valorem  rate of 100%, and 18 lines where 100% is the ad valorem 
component of the mixed duty. 
 
Source: WTO Secretariat calculations, based on  data provided by the UAE authorities. 
3.21.  The overall average tariff in 2015 was 4.7%, slightly lower than the average of 4.9% in 
2011, due to the increase in the number of duty-f ree tariff lines rather than any changes in MFN 
applied duties. There are no tariff quotas and few tariff peaks. 
Table 3.1 Tariff structure in the UAE, 2011-15 
 MFN applied 
2011 MFN applied 
2015 
Total number of tariff lines (No.) 7,101 7,321 
Non-ad valorem  tariffs (% of all tariff lines) 0.3 0.3 
Non-ad valorem  with no AVEs (% of all tariff lines) 0.3 0.3 
Lines subject to tariff quotas (% of all tariff lines) 0.0 0.0 
Duty-free tariff lines (% of  all tariff lines) 9.4 11.2 
Dutiable lines tariff average rate (%) 5.3 5.3 
Simple average tariff (%) 4.9 4.7 
Domestic tariff "peaks" (% of all tariff lines)a 0.5 0.3 
International tariff "peaks" (% of all tariff lines)b 0.5 0.3 
Overall standard deviation 5.7 5.3 
Nuisance applied rates (% of tariff lines)c 0.0 0.0 
Bound tariff lines (% of all tariff lines) 100.0 100.0 
a Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%. 
c Nuisance rates are greater than 0% but inferior or equal to 2%.  Source: WTO Secretariat calculations, based on  data provided by the UAE authorities. 
3.22.  The average agricultural tariff, at 5.5%, is slightly higher than the overall average of 4.7%, 
due to the concentration of tariff peaks on beverages, spirits, and tobacco. Apart from this 
category of products, there is little variation in tariffs from one product group to another with standard deviations for other product grou ps ranging from 0 to 2.5 (Table 3.2). WT/TPR/S/338 • United Arab Emirates 
 
- 37 - 
 
  Table 3.2 Summary analysis of 2015 applied and bound MFN tariffs 
Description No. of 
lines Average  
% Duty free  
% of 
lines Range 
% Standard 
deviation Final 
bound 
averagea 
% 
Total 7,321 4.7 11.2 0 - 100 5.3 14.3 
HS 01-24 1,376 5.1 25.1 0 - 100 12.0 24.7 
HS 25-97 5,945 4.6 7.9 0 - 5 1.4 12.6 
By WTO category       
WTO agriculture 1,197 5.5 22.3 0 - 100 12.9 25.5 
 - Animals and products thereof 157 2.7 40.1 0 - 5 2.5 35.3 
 - Dairy products 35 5.0 0.0 5 - 5 0.0 15.0 
 - Fruit, vegetables and plants 359 3.7 25.3 0 - 5 2.2 15.0 
 - Coffee and tea 38 3.6 26.3 0 - 5 2.2 15.0 
 - Cereals and preparations 184 3.5 29.9 0 - 5 2.3 15.0 
 - Oil seeds, fats and oils and their products 101 4.8 4.0 0 - 5 1.0 20.1 
 - Sugars and confectionary 40 3.3 32.5 0 - 5 2.4 15.0 
 - Beverages, spirits and tobacco 85 32.9 1.2 0 - 100 43.3 119.6 
 - Cotton 5 5.0 0.0 5 - 5 0.0 15.0 
 - Other agricultural products n.e.s. 193 4.2 15.5 0 - 5 1.8 15.0 
WTO non-agriculture (incl. petroleum) 6,124 4.5 9.0 0 - 5 1.4 12.6 
 - WTO non-agriculture (excl. petroleum) 6,089 4.5 9.0 0 - 5 1.4 12.6 
 - - Fish and fishery products 265 3.5 29.4 0 - 5 2.3 15.0 
 - - Minerals and metals 1,202 4.9 2.2 0 - 5 0.7 14.8 
 - - Chemicals and photographic supplies 1,275 4.5 9.5 0 - 5 1.5 7.1 
 - - Wood, pulp, paper and furniture 431 4.5 9.3 0 - 5 1.5 12.1 
 - - Textiles 717 5.0 0.6 0 - 5 0.4 14.9 
 - - Clothing 254 5.0 0.0 5 - 5 0.0 15.0 
 - - Leather, rubber, footwear and travel goods 212 5.0 0.0 5 - 5 0.0 15.0 
 - - Non-electric machinery 641 4.2 16.1 0 - 5 1.8 13.2 
 - - Electric machinery 315 3.3 33.0 0 - 5 2.3 11.4 
 - - Transport equipment 233 4.4 11.2 0 - 5 1.6 13.9 
 - - Non-agriculture articles n.e.s. 544 4.5 8.8 0 - 5 1.4 13.1 
 - Petroleum 35 5.0 0.0 5 - 5 0.0 15.0 
By HS section       
  01  Live animals & products 438 3.3 32.6 0 - 5 2.4 22.3 
  02  Vegetable products 461 3.0 39.7 0 - 5 2.5 15.0 
  03  Fats & oils 63 5.0 0.0 5 - 5 0.0 23.2 
  04  Prepared food etc. 414 9.8 4.6 0 - 100 21.4 40.9 
  05  Minerals 211 5.0 0.0 5 - 5 0.0 15.0 
  06  Chemicals & products 1,216 4.5 10.3 0 - 5 1.5 7.0 
  07  Plastics & rubber 272 5.0 0.0 5 - 5 0.0 11.7 
  08  Hides & skins 86 5.0 0.0 5 - 5 0.0 15.0 
  09  Wood & articles 190 4.9 1.6 0 - 5 0.6 15.0 
  10  Pulp, paper etc. 195 4.1 19.0 0 - 5 2.0 10.0 
  11  Textile & articles 944 5.0 0.0 5 - 5 0.0 15.0 
  12  Footwear, headgear 74 5.0 0.0 5 - 5 0.0 15.0 
  13  Articles of stone 229 4.9 1.3 0 - 5 0.6 14.9 
  14  Precious stones, etc. 65 3.2 35.4 0 - 5 2.4 15.0 
  15  Base metals & products 737 5.0 0.0 5 - 5 0.0 15.0 
  16  Machinery 949 3.8 22.8 0 - 5 2.1 12.3 
  17  Transport equipment 245 4.4 11.0 0 - 5 1.6 13.6 
  18  Precision equipment 286 4.3 13.3 0 - 5 1.7 13.1 
  19  Arms and ammunition 23 5.0 0.0 5 - 5 0.0 15.0 
  20  Miscellaneous manufacturing 212 5.0 0.0 5 - 5 0.0 14.6 
  21  Works of art, etc. 11 5.0 0.0 5 - 5 0.0 15.0 
a Bound rates are provided in HS2007 classification and applied rates in HS2012; therefore there is a 
difference between the number of lines included in the calculation. 
Source: WTO Secretariat calculations, based on  data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  3.23.  In all cases, the applied MFN tariff is less than the bound tariff. However, the 19 tariff lines 
subject to an applied tariff of 100% or a mi nimum specific duty are bound at 200% and the 
application of the specific duty could lead to an ad valorem  equivalent greater than the bound rate 
(Table 3.3). 
Table 3.3 Tariff lines with mixed MFN tariff, 2015 
HS Description Applied MFN duty Bound 
duty 
24011000 Tobacco, not stemmed/stripped 100% ad valorem , minimum Dh  20 per gross kg  200  
24012000 Tobacco, partly or wholly 
stemmed/stripped 100% ad valorem,  minimum Dh  20 per gross kg 200 
24013010 Tobacco refuse, partly or wholly 
stemmed/stripped 100% ad valorem,  minimum  Dh  20 per gross kg 200  
24013090 Tobacco refuse, othe r 100% ad valorem , minimum  Dh  20 per gross kg 200 
24021000 Cigars, cheroots and cigarillos, containing 
tobacco 100% ad valorem , minimum  Dh  150 per kg in 
direct package   200 
24022000 Cigarettes containing tobacco 100% ad valorem , minimum  Dh  100 per 1000 
cigarettes  200 
24029010 Cigars of tobacco substitutes (not 
containing tobacco or nicotine) 100% ad valorem , minimum  Dh  150 per kg  in 
direct package   200 
24029020 Cigarettes of tobacco substitutes (not 
containing tobacco or nicotine) 100% ad valorem , minimum  Dh  100 per 1000 
cigarettes  200 
24031100 Water pipe tobacco specified in 
Subheading Note 1 to this Chapter 100% ad valorem , minimum  Dh  6 per gross kg 200  
24031910 Chopped or pressed tobacco for smoking 
(cigarettes) 100% ad valorem , minimum  Dh  40 per net kg 200 
24031920 Chopped or pressed tobacco for pipes  100% ad valorem , minimum  Dh  40 per net kg 200  
24031930 Chopped or pressed tunbac for retail sale  100% ad valorem , minimum  Dh  40 per net kg 200 
24031990 Other smoking tobacco 100% ad valorem , minimum  Dh  40 per net kg 200  
24039100 "Homogenized" or "reconstituted" tobacco  100% ad valorem , minimum  Dh  40 per net kg 200 
24039910 Pressed or liquored tobacco for making 
snuff 100% ad valorem , minimum  Dh  40 per net kg 200  
24039921 Chewable and sniffing preparations 
(shamma and suwaika) containing tobacco Prohibited  200 
24039929 Othe r 100% ad valorem, minimum Dh  40 per net kg 200  
24039930 Snuff 100% ad valorem , minimum  Dh  40 per net kg 200 
24039940 Jira k 100% ad valorem , minimum  Dh  6 per gross kg 200  
24039990 Other tobacco  100% ad valorem , minimum  Dh  40 per net kg 200 
Source: WTO Secretariat calculations, based on  data provided by the UAE authorities. 
3.1.4.2  Bound tariffs 
3.24.  The UAE has bound all tariff lines in the WTO. Bound rates are all ad valorem, range from 
zero to 200%, and have a simple average of 14.3% (Table 3.2). Most tariff li nes (74% of lines) are 
bound at 15%. The highest bound rates of 200% apply to swine meat, alcoholic beverages, and tobacco products. 
3.1.4.3  Preferential tariffs 
3.25.  The United Arab Emirates is a member of the Gulf Cooperation Council (GCC) along with the 
Kingdom of Bahrain, the State of Kuwait, Oman , Qatar, and the Kingdom of Saudi Arabia. All 
goods meeting GCC rules of origin may enter the UAE duty free. Each member can issue its own 
list of prohibited and restricted goods. Goods produced in free trade zones within the GCC are 
taxed at the applied MFN tariff. Goods enteri ng one GCC member State are allowed to be 
transported to any other member State without further inspection or duty payments. Prohibited 
goods may not enter or transit a GCC memb er State in which they are prohibited. 
3.26.  The UAE is a member of the Pan-Arab Free Trade Area (PAFTA) (see Section 2.3.2.2). Under 
the PAFTA Agreement all customs duties on goods originating from members were eliminated on 1 
January 2005. 
3.27.  With regard to imports from Singapore, 6,750 lines have been duty free since 1 April 2015. 
For imports from EFTA States, 6,535 lines have been duty free since 1 July 2015. WT/TPR/S/338 • United Arab Emirates 
 
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  3.1.5  Other charges affecting imports 
3.28.  Apart from customs duties and charges relate d to legalization of documents, no other duties 
or charges are applied to imports.  
3.1.6  Import prohibitions, restrictions, and licensing 
3.29.  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 State and permitted in another may not transit through the States in which they are prohibited. 
3.30.  The main domestic legislation on import prohibitions is Law No. 13 of 2007 regarding 
Commodities that are Subject to Import and Expo rt Control Procedures, as amended. Under this 
law imports may be prohibited on grounds of public safety, public health, environment, natural resources, and national security or for reasons related to the UAE foreign policy. Under Law No. 15 
of 1972, imports of all goods from Israel or bear ing Israeli marks or logos are prohibited. Cabinet 
Decree No. 299/3 of 2009 established the Committee for Goods and Material Subject to Import 
and Export Control. The list of strategic goods and materials subject to import control is based on 
several international arrangements, including the Wassenaar Arrangement on Export Control for 
Conventional Arms and Dual-Use Goods and Technologies, the International Atomic Energy Agency, the Biological and Toxin Weapons Convention, the Missile Technology Control Regime, and 
the Organisation for the Prohibition of Chemical  Weapons. The Executive Office of the Committee 
is responsible for issuing import permits for goods on the list of strategic commodities while the importers must be licensed by the relevant government agency to practice an activity relating to the import of such materials. 
3.31.  The UAE is 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 Hazardous Chemicals, the Montreal Protocol on Substances that Deplete 
the Ozone Layer, and the Kimberley Process Certif ication Scheme. Goods prohibited from entering 
the UAE are listed in Table 3.4.  
Table 3.4 Prohibited goods 
HS code Product description Authority 
01031000 Purebred breeding animals, live swine Ministry of Environment and Water 
01039100 Other, weighing less than 50 kg Ministry of Environment and Water 
01039200 Other, weighing 50 kg or more Ministry of Environment and Water 
05071000 Ivory; ivory powder and waste Ministry of Environment and Water 
09082100 Mace, neither crushed nor ground Ministry of Interior 
09082200 Mace, crushed or ground Ministry of Interior 
12079100 Poppy seeds Ministry of Interior 
12079910 Poppy Ministry of Interior 
12079920 Hemp seeds Ministry of Interior 
12113000 Coca leaf Ministry of Interior 
12114000 Poppy straw Ministry of Interior 
12119020 Black poppy Ministry of Interior 
12119060 Hemp Ministry of Interior 
13021100 Opium Ministry of Interior 
13021910 Hashish Ministry of Interior 
24039921 Chewable and sniffing preparation (Shamma and 
Suwaika) containing tobacco Ministry of Interior 
25241000 Crocidolite Ministry of Interior 
25249000 Asbestos, other Ministry of Interior 
29399110 Cocaine Ministry of Interior 
40121100 Retreated tyres, of kind used on motor cars 
(including station wagons and racing cars) Emirates Authority fo r Standardization and 
Metrology 
40121200 Retreated tyres, of a kind used on buses or 
lorries Emirates Authority fo r Standardization and 
Metrology 
40121300 Retreated tyres, of a kind used on buses aircraft Emirates Authority fo r Standardization and 
Metrology 
40121900 Other retreated tyres Emirates Authority for Standardization and 
Metrology 
40122000 Used pneumatic tyres Emirates Authority fo r Standardization and 
Metrology WT/TPR/S/338 • United Arab Emirates 
 
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  HS code Product description Authority 
68114000 Articles of asbestos-cement, of cellulose fibre-
cement or the like, containing asbestos Federal Environment Authority 
68128000 Fabricated asbestos fibres, mixtures with a basis 
of asbestos or with a basis of asbestos and 
magnesium carbonate, articles of such mixtures, 
of crocidolite Federal Environment Authority 
68129300 Compressed asbestos fibre jointing, in sheets or 
rolls Federal Environment Authority 
68132000 Friction material and arti cles thereof containing 
asbestos Federal Environment Authority 
85437030 Electronic cigarettes General Secretariat of Municipalities 
Source: Information provided by the UAE authorities. 
3.32.  Import restrictions are applied to some goods for safety, health, public morals, or security 
reasons (Table 3.5). Imports of restricted goods are permitted, subject to additional import requirements, such as veterinary or plant health certificates, or subject to limits such as those 
applying to alcohol and cigarettes. 
Table 3.5 Restricted goods 
HS  Product description Authority Duty  
02031100 Meat of swine, fresh, carcasses and half carcasses Ministry of Environment and Water   200 
02031200 Hams, shoulders and cuts thereof, with bone in Ministry of Environment and Water  200 
02031900 Meat of swine, fresh, other Ministry of Environment and Water  200 
02032100 Meat of swine, frozen, ca rcasses and half carcasses Ministry of Environment and Water  200 
02032200 Hams, shoulders and cuts thereof, with bone in Ministry of Environment and Water  200 
02032900 Meat of swine, frozen, other Ministry of Environment and Water  200 
02050090 Meat of asses, mules or hinnies, fresh, chilled or 
frozen Ministry of Environment and Water  15 
02063000 Edible offal, of swine, fresh or chilled Ministry of Environment and Water  200 
02064100 Livers of swine, frozen Ministry of Environment and Water  15 
02064900 Other of swine, frozen Ministry of Environment and Water  15 
02091000 Fat, free of lean meat, and poultry fat,  of pigs Ministry of Environment and Water  .. 
02101100 Meat of swine, hams, shoulders and cuts thereof, 
with bone in Ministry of Environment and Water  200 
02101200 Meat of swine, bellies (streaky) and cuts thereof Ministry of Environment and Water  15 
02101900 Other meat of swine Ministry of Environment and Water  15 
05021000 Pigs', hogs' or boars' bristles and hair and waste 
thereof Ministry of Environment and Water  15 
15011000 Lard Ministry of Environment and Water  .. 
15012000 Other pig fat Ministry of Environment and Water  .. 
15030011 Oleostearin, of pig Ministry of Environment and Water  200 
15030021 Oleomargarine, of pig Ministry of Environment and Water  200 
15030091 Other oil, of pig Ministry of Environment and Water  200 
15180011 Animal or vegetable fats and oils and their 
fractions, of pig Ministry of Environment and Water  15 
16010010 Sausages and similar products, of swine or animal 
blood Ministry of Environment and Water  15 
16024100 Hams and cuts thereof, of swin e Ministry of Environment and Water  200 
16024200 Shoulders and cuts thereof, of swine Ministry of Environment and Water  15 
16024900 Other, including mixtures, of swine Ministry of Environment and Water  15 
16029030 Preparations of animal blood Ministry of Environment and Water 15 
17049080 White chocolate containing alcohol Ministry of Interior 15 
18063110 Other preparations of chocolate, containing alcohol Ministry of Interior 15 
18063210 Other preparations of chocolate, containing alcohol Ministry of Interior  15 
20082010 Pineapples, alcohol added Ministry of Interior  15 
20083010 Citrus fruit, alcohol added Ministry of Interior  15 
20084010 Pears, alcohol added Ministry of Interior  15 
20085010 Apricots, alcohol added Ministry of Interior  15 
20086010 Cherries, alcohol added Ministry of Interior  15 
20087010 Peaches, including nectarines, alcohol added Ministry of Interior  15 
20088010 Strawberries, alcohol added Ministry of Interior  15 
20089310 Cranberries, alcohol added Ministry of Interior  .. 
20089710 Mixtures, alcohol added Ministry of Interior  .. 
20089910 Other fruits, alcohol added Ministry of Interior  15 
22030000 Beer made from malt Ministry of Interior  200 WT/TPR/S/338 • United Arab Emirates 
 
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  HS  Product description Authority Duty  
22041000 Sparkling wine Ministry of Interior  200 
22042100 Other wine; grape must with fermentation 
prevented or arrested by th e addition of alcohol, in 
containers holding 2 L or less Ministry of Interior  200 
22042900 Other wine; grape must with fermentation 
prevented or arrested by the addition of alcohol, other Ministry of Interior
 200 
22043000 Other grape must Ministry of Interior  200 
22051000 Vermouth and other wine of fresh grapes flavoured 
with plants or aromatic substances, in containers holding 2 L or less Ministry of Interior
 200 
22059000 Vermouth and other wine of  fresh grapes flavoured 
with plants or aromatic substances, other Ministry of Interior  200 
22060000 Other fermented beverages (for example, cider, 
perry, mead); mixtures of fermented beverages 
and mixtures of fermented beverages and non-
alcoholic beverages, not elsewhere specified or included Ministry of Interior
 200 
22072090 Other ethyl alcohol and other spirits, denatured, of 
any strength Ministry of Interior  200 
22082000 Spirits obtained by distilling grape wine or grape 
marc Ministry of Interior  200 
22083000 Whiskies Ministry of Interior  200 
22084000 Rum and other spirits obtained by distilling 
fermented sugar cane products Ministry of Interior  200 
22085000 Gin and Geneva Ministry of Interior  200 
22086000 Vodka Ministry of Interior  200 
22087000 Liqueurs and cordials Ministry of Interior  200 
22089090 Other undenatured ethyl alcoholic of an alcoholic 
strength by volume of  less than 80% vol. Ministry of Interior  200 
23070010 Wine lees Ministry of Interior  15 
41033000 Other raw hides and skins, of swine Ministry of Environment and Water 15 
41063100 Tanned or crust hides and skins of swine, in the 
wet state (including wetblue) Ministry of Environment and Water  15 
41063200 Tanned or crust hides and skins of swine, in the 
dry state (crust) Ministry of Environment and Water  15 
41132000 Leather further prepared after tanning or crusting, 
of swine Ministry of Environment and Water  15 
.. Not available. 
 Source: WTO Secretariat based on data  provided by the UAE authorities 
3.33.  Restricted goods are specific to the author ity of the customs authority of each emirate and, 
therefore, may vary from one emirate to another. Thus Dubai Customs includes as restricted 
goods live animals and birds, weapons and amm unitions, medicines and medical equipment, 
fertilizers, fungicides, seedlings and seeds, co mmunications systems, chemicals and radioactive 
substances, certain veterinary products, certain blood products, animal products, and new tyres.21 
3.34.  The UAE notified the WTO that it has no legislation on import licensing procedures22 and 
that there are no import licensing requirements.23 
3.1.7  Anti-dumping, counterva iling, and safeguard measures 
3.35.  Since the last review, there have been no changes to the legal or institutional framework for 
contingency measures.24 Federal Decree No. 7 of 2005 adopted the GCC Common Law on Anti-
dumping and Countervailing Measures of 2003 an d its Rules of Implementation of 2004. The 
Common Law was amended in 2010. In September 2015, the UAE notified the WTO that Federal 
Decree No. 7 of 2005 had ratified the Common Law on Anti-dumping and Countervailing Measures 
                                               
21 Dubai Customs online information. Viewed at: http://www.dubaitrade.ae/knowledge-centre/laws  
[February 2016]. 
22 WTO document G/LIC/N/1/ARE/1, 18 April 1997. 
23 WTO document G/LIC/N/3/ARE/1, 25 April 2000. 
24 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Section 3, paragraphs 54-56. WT/TPR/S/338 • United Arab Emirates 
 
- 42 - 
 
  of 2003 and that a Federal law was being prepared which would incorporate the 2010 amended 
GCC Common Law.25 
3.36.  The UAE did not apply any contingency meas ures during the period under review nor have 
the authorities received any official requests for initiation of investigations for antidumping, 
countervailing duties, or safeguard measures. Furthermore, the GCC Common Law and the Rules 
of Implementation empower the relevant GCC Committees and the GCC Technical Secretariat to administer and implement the GCC Common Law. The UAE does not currently have a trade 
remedy law that can be applied independently from the GCC Common law (which was approved by 
the Federal Decree No. 7 of 2005) which can only be administered by the GCC Technical Secretariat and the relevant GCC Committees. 
3.37.  Under the Amended Common Law: 
 the Ministerial Committee is the competent body for, inter alia , preparing the Rules of 
Implementation for the Common Law; and taking decisions to impose, amend, or suspend definitive contingency measures; 
 the Permanent Committee of officials from the member States is responsible for, inter alia , 
imposing provisional measures and price undertakings; and making recommendations to the Ministerial Committee to impose or amend definitive measures; and 
 the Bureau of the Technical Secretariat for Anti-injurious Practices in International Trade 
under the GCC Secretariat is responsible for, inter alia , implementing the decisions of the 
Ministerial and Permanent Committees; providing consultancy and technical support to GCC producers and exporters facing dumping, subsidy or safeguard investigations in other 
countries; receiving complaints; and conducting investigations.  
3.38.  Under the Rules of Implementation of the Amended Common Law, requests for 
investigations relating to contingency measures must be submitted in writing to the Bureau of the 
Technical Secretariat and must be made by an indust ry in the GCC, on behalf of an industry by a 
chamber of commerce and industry in a member State, or by a producers' union. In specific circumstances, the Permanent Committee may also initiate an investigation on its own initiative or 
upon request from a ministry in any of the member  States, provided there is enough evidence to 
justify initiation of an investigation. Starting from the day after receiving a complaint, the Bureau has 30 working days to consider the case and prepare an initial report for the Permanent Committee with a recommendation to either reject or initiate an investigation. The Permanent 
Committee then has 15 working days either to reject the complaint, or to accept it and pass it 
back to the Technical Secretariat to begin the investigation. The complainant is to be notified within seven working days of the Permanent Committee's decision. 
3.39.  Under the Rules of Implementation, the Bureau  is required to notify the Government of each 
country referred to in an anti-dumping or countervailing duty complaint before initiating an investigation. The Technical Secretariat is also required to invite the exporting country to 
consultations to clarify the facts and review the ev idence in the complaint with the aim of reaching 
a mutually agreed solution. 
3.40.  Once the Permanent Committee has agreed to initiate an investigation, a notice must be 
published in the Official Gazette  within 10 working days. For anti-dumping and countervailing 
investigations the Technical Secretariat is required to contact all known interested parties and 
representatives of the exporting countries. For safeguard investigations, interested parties are informed through the publication in the Official Gazette  and notification to the WTO. Normally, the 
Technical Secretariat should make a preliminary determination within 180 days of initiating an 
investigation and a final report 180 days later. All interested parties have the right to comment and submit arguments within 15 days of disclosure of the preliminary determination. 
3.41.  The Permanent Committee has 30 working days after receiving a preliminary report to 
decide whether to terminate the investigation without imposing contingency measures, or to impose provisional measures and continue the investigation. In either case, the complainant must 
                                               
25 WTO documents G/ADP/N/1/ARE/2, G/SCM/N/1/ARE/2, and G/SG/N/1/ARE/2, 28 September 2015. WT/TPR/S/338 • United Arab Emirates 
 
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  be notified and a notification published in the Official Gazette . Definitive measures may only be 
imposed by the Ministerial Committee acting on a proposal from the Permanent Committee. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 
3.42.  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. For exports from the GCC to the rest of the world, the only document required is the original invoice. In some cases, exports of 
goods on the restricted list may also require an  export permit from the competent authority. 
3.2.2  Export taxes, charges, and levies 3.43.  According to the authorities, there are no ex port taxes, charges, or levies applied in the UAE 
apart from a tax on exports of scrap steel of Dh 250 per tonne, which was introduced in 2004. 
However, the authorities stated that steel scrap has been exported without payment of the tax and 
the Ministry of Economy, in collaboration with other federal authorities, is currently (as at end-September 2015) appraising the tax. 
3.2.3  Export prohibitions, restrictions, and licensing 
3.44.  As for imports, under the Common Customs Law of the GCC States certain categories of 
goods may be subject to export prohibitions or restrictions. In the UAE, export prohibitions or 
restrictions are applied: on the grounds of public safety, public health, public morals, environment, 
natural resources, national security, and UAE foreign policy; and to comply with international treaties and conventions. Law No. 13 of 2007, as  amended, provides the legal basis for export 
prohibitions and restrictions. 
3.45.  The UAE is not a participant in the Wassenaar Arrangement on Export Controls for 
Conventional Arms and Dual-Use Goods and Tech nologies, the Australia Group on chemical and 
biological weapons, or the Nuclear Suppliers Group, nor is it a partner in the Missile Technology 
Control Regime. The Federal Authority for Nuclea r Regulation (FANR) and the Committee for Goods 
and Materials Subject to Import and Export Co ntrol has adopted the Nuclear Suppliers Group 
Guidelines for Nuclear Transfers in accordance with UAE laws.
26 
3.2.4  Export support and promotion 
3.46.  According to the notification to the WTO by the UAE in 2000, the UAE does not grant or 
maintain any subsidies within the meaning of Arti cles 1.1 and 2 of the Agreement on Subsidies and 
Countervailing Measures, or which operate directly or indirectly to increase exports from, or reduce 
imports into its territory within the meaning of Article XVI:1 of GATT 1994.27 According to the 
authorities, the UAE does not provide any export subsidies. In notifications made in 2015 it notified the WTO that no export subsidies existed for agricultural products for 2002 to 2014.
28 
3.47.  According to the authorities, Federal Law No. 1 of 1979 includes provisions relating to 
incentives for industrial companies but the only incentive generally available is the right to import duty-free material used in the manufacturing pr ocess and included in the industrial project's 
licence. The import duty exemption is available to all industrial establishments operating in the 
UAE with no restrictions or obligations relating to exports of outputs. 
3.48.  Dubai Exports, an agency of the Department  of Economic Development, provides assistance 
to exporters through a number of services for memb er enterprises that provide trade information, 
branding advice, financial and foreign trade repr esentation, and access to potential buyers. The 
services include the Export Assistance Programme (EAP) which is targeted at privately-owned small and medium-sized enterprises (which was put on hold in 2015 due to budgetary 
                                               
26 Federal Authority for Nuclear Regulation (2008), Policy of the United Arab Emirates on the Evaluation 
and Potential Development of Peaceful Nuclear Energy , p. 3. 
27 WTO documents G/SCM/N/38/ARE, G/SCM/N/48/ARE, and G/SCM/N/60/ARE, 18 April 2000. 
28 WTO documents G/AG/N/ARE/6, 23 January 2015 and G/AG/N/ARE/9, 22 June 2015. WT/TPR/S/338 • United Arab Emirates 
 
- 44 - 
 
  constraints). For eligible products, the EAP provides support for eligible marketing activities which 
include marketing studies, market visits, exhibitions, and buyer visits. Eligible products are those that Dubai Exports agrees are of UAE origin with  a minimum of 10% value added in the UAE. The 
grant payment may be up to one-third of eligible expenses.
29 Dubai Exports also runs an Export 
Academy, and an Export Resource Centre, and provid es assistance for participation in international 
exhibitions, and trade missions. 
3.2.5  Export finance, insurance, guarantees 
3.49.  The Emirates Industrial Bank (EIB) used to provide export credit facilities with loans of up to 
80% of the value of the export contract for operations established in the UAE with at least 51% GCC ownership. In June 2015, under Federal Law No. 7 of 2011, the state-owned Emirates Development Bank took over the operations of the EIB and the Emirates Real Estate Bank to 
provide financing for housing, infrastructure, and SMEs.
30 
3.50.  The Dubai Government-owned Export Credit Insurance Company of the Emirates (ECIE) 
provides a Comprehensive Short-Term Policy for trade credit insurance to companies based in the 
UAE that are engaged in manufacturing, value- added trading, and exports of services. The 
insurance policies cover a seller against the risk of non-payment: 
 risks covered include commercial non-payment (such as insolvency and default) and 
political non-payment (government moratorium, war, non-transfer of funds, import 
licence cancellation); 
 the policy protection package of the ECIE incl udes credit risk analysis, debt collection 
and recovery, and indemnification of up to 90% of insured invoices; and 
 the product range includes short-term risk cover on an insurable turnover basis (i.e. 
all open credit sales), single buyer insurance and equity investment insurance, and medium/long-term risk cover up to a maximum of seven years. 
3.51.  Premiums are based on risk classification  and the ECIE's total insured business volume was 
Dh 739.55 million in 2014 when it made a net profit of Dh 657,376. 
3.52.  In 2014, it was reported that Dubai was studying plans to establish a Dubai Exim Bank 
which would offer Shariah-compliant financing to promote trade while Abu Dhabi had, in 2010, 
also announced plans to set up an export credit agency.
31 
3.3  Measures Affecting Production and Trade 3.3.1  Standards and other technical requirements 
3.53.  The legal and institutional framework for standards has remained largely unchanged since 
the last review.
32 The Emirates Authority for Standardization and Metrology (ESMA), established 
under Law No. 28 of 2001, is the body responsible for standards and technical requirements in the 
U A E .  T h e  E S M A  i s  c h a i r e d  b y  t h e  M i n i s t r y  o f  Environment and Water (MOEW) and comprises 
representatives of the main parties involved in standardization in the UAE, such as the Federal Government, industrial sector, traders, laboratories, and calibration bodies. According to the 
authorities, the processes for establishing standards and technical requirements and the 
accreditation of conformity assessment bodies are based on international practices such as ISO/IEC 17011, and ISO/IEC Directives Parts 1 and 2. 
3.54.  The UAE is a member of the GCC's Gulf Standardization Organization (GSO), which helps to 
harmonize and promote coherence among the GCC member States regarding standardization and 
                                               
29 Dubai Exports online information. Viewed at: http://www.dedc.gov.ae/Engl ish/Pages/default.aspx  
[November 2015]. 
30 WAM (2015), Emirates Development Bank launches operations in Abu Dhabi , 16 June. 
31 The National , "Dubai looks to boost trade flows with Shar ia-compliant export credit agency", 19 March 
2014. Viewed at: http://www.thenational.ae/business/industry-insights/economics/dubai-looks-to-boost-trade-
flows-with-sharia-compliant-export-credit-agency  [September 2015]. 
32 WTO document WT/TPR/S/262/Rev.1,  3 May 2012, Chapter III (2)(ix). WT/TPR/S/338 • United Arab Emirates 
 
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  related matters, such as conformity assessment procedures. GCC-wide standards may be 
proposed or initiated by a representing body of a member State, and are processed through one of 
the 12 technical committees of the GSO. A proposal requires support from at least two member States in order to be included in the GSO work programme. In general, GSO standards are based 
on international standards. Once the GSO stan dard is approved, each GCC member State may 
transpose it into a national standard through domestic legal procedures. 
3.55.  The ESMA is in charge of formulating, drafting and issuing standards on the federal level. 
Draft standards are prepared by the nine technica l committees based on existing international and 
regional standards. Requests for standards may be made by the Government, representatives of 
industry, or consumers. The drafts are circulated for comments to the stakeholders in the relevant 
field, and comments must be provided within 60 days of circulation. Draft standards are also 
circulated abroad for comments if they are not based on an existing international standard. The 
comments are considered by the technical committees which may amend the draft as required. 
Once approved by the ESMA Board of Directors,  a standard is numbered and published in the 
Official Gazette . The ESMA may also adopt international standards and technical regulations issued 
by binding resolutions of the Cabinet. 
3.56.  By the end of 2014, the ESMA had published 10,848 UAE standards mostly based on GCC 
standards. According to the authorities, at en d-2015 about 77% of published standards are in 
conformity with international standards. In the absence of an international standard, the relevant standard in another country may be used as a ba sis, such as the American National Standards 
Institute or one of the European Standards Organizations. 
3.57.  The ESMA is a member of several international standards-related organizations including the 
International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Laboratory Accreditation Cooperation (ILAC), the GCC 
Standardization Organization (GSO), the Arab Industrial Development and Mining Organization 
(AIDMO), the International Organization of Legal Metrology (OIML), and the Standards and Metrology Institute for Islamic Countries (SMIIC). 
3.58.  All technical regulations of the UAE apply eq ually to locally produced and imported products. 
Regulated products are granted entry if they comply  with the provisions of the applicable technical 
regulation and conformity assessment procedures. The procedure of devising technical regulations has not changed since last WTO Trade Policy Review of the UAE in 2012.
33 At end-2014, there 
were 793 technical regulations in place. 
3.59.  During 2012-2015 the UAE made 207 notifications to the WTO Committee on Technical 
Barriers to Trade under Article 10.6 of the TBT Ag reement. Of these, three were corrigenda, and 
28 were joint notifications made along with the other member States of the GCC plus Yemen. From 
1 January 2016 to 29 February 2016, a further 5 TBT notifications were distributed on behalf of the UAE, the other GCC member States, and Yeme n. The notifications by the UAE were mostly 
related to draft technical regulations distributed for comments. Comments by Members and other 
interested parties on these proposed measures are sent to the ESMA, which channels them to the appropriate technical Committee for consideration. In the period 2012-2015 in the TBT Committee, WTO Members raised two specific trade concerns with the UAE.
34 
3.60.  In 2006 the UAE notified its acceptance of the WTO TBT Code of Good Practice for the 
Preparation, Adoption and Application of Standard s with the ESMA being a national enquiry point. 
3.61.  In 2004, the ESMA started operating the Emirates National Accreditation System (ENAS) in 
accordance with Decision of Council of Ministers No. 22 of 1 June 2004. Conformity assessment 
bodies seeking accreditation may apply to the ESMA; the ENAS proceeds with assessment and 
accreditation procedures as per international practice and requirements. ESMA/ENAS is currently a 
member of the International Laboratory Accreditation Cooperation (ILAC) and operates in 
accordance with the international standard for accreditation bodies (ISO/IEC 17011). Since 2004 ESMA has been granting accreditation to conf ormity assessment bodies supporting different 
                                               
33 WTO document WT/TPR/S/262/Rev.1,  3 May 2012, Chapter III (2)(ix). 
34 WTO TBT Information Management System data base: Conformity assessment procedures for 
automobile tyres (ID 368); and Control regulations for Halal products (ID 402). WT/TPR/S/338 • United Arab Emirates 
 
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  industrial sectors through the country. At end-2015 the ESMA had accredited 73 testing and 
calibration laboratories, 38 inspection bodies, and 6 certification bodies. 
3.62.  An automated system of conformity assessment was introduced in early 2014 which takes 
about 8 days to process an application (provided all necessary documents are submitted, including 
approval from a certified conformity assessmen t body). At end-February 2016, about 80% of 
applications for conformity assessment were ma de through the automated system. The ESMA is 
also working on an online accreditation sy stem for conformity assessment bodies and a 
certification system. 
3.63.  Specific labelling requirements in the UAE apply to toys, tobacco products, food, chemical 
products, industrial products, drinking water, textiles, and cosmetics. In addition, labels indicating energy efficiency are required for household electrical products. All labels must be in Arabic or in 
Arabic and English. Tobacco packages require a special health warning in Arabic. 
3.64.  Labelling and adjoining explanatory statements for food must be in Arabic, and, where 
another language is used, it must be alongside the Arabic. Mandatory labelling of pre-packaged 
foods must include: product name; a list of all ingredients declared in descending order of weight; 
and a list of food additives. Additionally, the label must contain the name and address of the 
manufacturer and packer (in cases where the packer is not a manufacturer), date of production, 
and instructions for storage. In cases where the food has been treated with ionizing radiation, 
there must be an indication of this next to the name of the food product and the international food 
irradiation symbol must be used. Meat products must also have a halal certificate. 
3.3.2  Sanitary and phytosanitary requirements 
3.65.  During the review period, the institutiona l framework for sanitary and phytosanitary (SPS) 
measures remained largely unchanged. The Ministry of Environment and Water (MOEW) is responsible for SPS issues at the federal level in the UAE. Additionally, each emirate has its own 
agency responsible for applying rules adopted by the MOEW.
35 
3.66.  During 2012-2015 the UEA made 47 notifications under the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures. Of these one was a corrigendum, two were 
addenda, and 29 were emergency notifications (most of which referred to poultry products, as well 
as live sheep and goats and their products). The 15 regular notifications referred to new legislation or amendments to existing legislation. An addi tional 3 notifications were distributed between 
1 January and 29 February 2016, of which one was an emergency notification for live poultry and 
poultry products. No specific trade concerns we re raised by other WTO Members concerning SPS 
measures in the UAE.
36 
3.67.  Generally, the UAE federal regulations on SPS requirements are based on GCC standards. 
However, the UAE has extensive national legislation to regulate SPS measures. The main national 
laws are Federal Law No. 5 of 1979 on agricultural  quarantine, as amended, Federal Law No. 6 of 
1979 on veterinary quarantine, as amended, and Federal Law No. 10 of 2015 on food safety. All 
main federal laws, executive by-laws, and ministerial decrees with respect to SPS issues are 
available on the Ministry of Environment and Water's website. 
3.68.  All live animals and animal products (except food products of animal origin) and fodder need 
an import permit prior to importation issued by the MOEW. Additionally, all live animals and animal 
products as well as all plants and plant products are subject to quarantine measures and must be 
accompanied by a health certificate. Sperm for artificial insemination and hatching eggs may be imported only from countries that have been approved for exporting to the UAE, and must be 
accompanied by a health certificate stating that they are from animals free from disease. 
According to the authorities, country approval is based on OIE (World Organisation for Animal Health) country reports on animal health status. All shipments of food are visually inspected to 
ensure compliance with labelling and shelf-life regulations, while random samples are taken from 
some food consignments (depending on risk assessments) for laboratory tests to ensure 
compliance with UAE requirements. 
                                               
35 WTO document WT/TPR/S/262/Rev.1,  3 May 2012, Chapter III (2)(x). 
36 WTO SPS Information Management System database. WT/TPR/S/338 • United Arab Emirates 
 
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  3.69.  The GCC Guide for Control on Imported Foods was adopted in September 2014 by GCC 
Ministers in charge of food safety and issued as  a draft in 2015. The Guide describes principles and 
regulatory requirements to be applied by the impo rting (GCC) countries in assuring the safety and 
suitability of shipments of imported food. Specific attestations for animal and plant health 
certification are also provided in the Guide. The Guide incorporates the Codex Alimentarius, OIE, 
and IPPC standards as international benchmarks wh ere appropriate. Application of the Guide is to 
be on a trial basis until 1 June 2016. 
3.70.  There is ongoing work in GCC countries to harmonize all regulatory requirements for 
imported foods and provide a coordinated and effi cient border inspection and clearance system. 
While regulatory requirements and procedures for imported foods are not as yet fully harmonized between the countries of the GCC, the Guide aims at contributing to the harmonization process. 
3.71.  In the period under review, the UAE concluded bilateral arrangements on SPS matters with 
the Republic of Korea, Ethiopia, Argentina, Uruguay, Poland, the Kingdom of Bahrain, Morocco, and Sultanate of Oman. 
3.72.  The UAE is a member the World Organization for Animal Health (OIE), the International 
Plant Protection Convention (IPPC), and the Codex Alimentarius. 
3.3.3  State-owned enterp rises and privatization 
3.73.  Government-related entities (GREs) have been a significant source of growth, development 
and diversification for the UAE economy and consititute a network of commercial corporations, financial institutions, and investment arms owned directly by the Governments of Dubai and Abu Dhabi organized and operated as large holding companies. 
3.74.  The natural resource endowments in the oil-rich UAE have decisively impacted the level of 
state ownership there. The oil industry, however, is not the only sector characterized by state dominance. State ownership encompasses nearly all other productive activities such as real estate, 
telecommunications, construction, manufacturing, el ectricity, transport, agribusiness, education, 
and health services. In 2009, the Government established the Emirates Competitiveness Council (ECC) to address issues related to improving the efficiency and governance of state-owned 
enterprises, recognizing that some of them are a fiscal burden while others are, or could be, a 
source of economic competitiveness. The ECC's ot her objectives include engaging with the private 
sector to identify and communicate its need s for improving competitiveness. The Dubai 
Government has also taken various measures since 2009 to improve the corporate governance in 
GREs. Many of these GREs are either listed or ha ve been regular issuers of bonds and sukuks in 
the capital markets (DEWA, Emirates, Emaar, DP World, Nakheel, and JAFZA to name a few). These entities, as part of their investor relations, regularly disclose their financials, which include 
debt levels and asset positions, to lenders and bond holders. 
3.75.  Some GREs, such as Emirates National Oil Company (ENOC), are strategically important 
companies and important sources of fiscal revenue. In 2006, Mubadala Development Company 
established Masdar to develop renewable energy and sustainable technology industries. A number 
of GREs, such as Emirates Airlines and Etisalat, have in recent years emerged as internationally recognized brands. Some, but not all of these companies, operate in the same sectors and may compete against other state-owned firms (Emirates, Etihad and Fly Dubai in air transport or 
Etisalat and Du in telecommunications). According to the authorities, in many cases these 
companies, although state-owned, have full autonomy and are managed independently through 
their boards. In Dubai, GREs have been used as an engine for diversification and are present in a 
number of sectors, including construction, hospital ity, transport, banking and telecommunications.  
3.76.  In 2012 the Central Bank required local financial institutions to limit their exposure to the 
Governments of the emirates in the federation and related entities to a maximum of 100% of their 
capital base, and their exposure to individual pu blic sector borrowers to 25%. This measure was 
adopted as a reaction to the financial crisis, during which several GREs defaulted on loans, creating liquidity problems in the local banking market. In October 2012, the Government of Abu Dhabi issued a new decree requiring SOEs to apply for an explicit sovereign guarantee prior to issuing 
debt. Sectoral regulations also in some cases address governance structures and practices of 
GREs. The Government of Dubai also established a Supreme Fiscal Committee, which has the WT/TPR/S/338 • United Arab Emirates 
 
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  exclusive right to approve all government borrowings and guarantees. In addition, all GREs have 
to seek approval or exemption from the Supr eme Fiscal Committee for their borrowing plans. 
3.77.  According to the IMF, GREs have strengthened their finances: in Dubai, the major debt 
restructurings from the 2008/9 crisis have been completed; several GREs made early repayments 
of upcoming maturities; and Dubai World agreed with its creditors to reschedule a large maturity 
due in 2018. However, total government and GRE debt in Dubai continued to be significant at 136% of Dubai GDP. In Abu Dhabi GREs have substantially reduced their debt.
37 Furthermore, 
according to the authorities, as a result of the measures taken since the financial crises the GREs 
are in a comfortable liquidity position because th ey have deleveraged their balance sheets through 
sales of non-core assets, raising fresh equity and long-term fixed rate debts in the bond and lending markets. 
3.78.  The authorities also stated that the comme rcial debt of state-owned companies should be 
distinguished from sovereign government debt. The Government's intervention in 2009 to restructure some of the debt of these companies and facilitate deferred payments was without any 
public guarantee or commitments. Furthermore, La w No. 3 of 2006 which established Dubai World, 
states that the entity has an independent legal status and is managed on a commercial basis (Article 3) while the Government is not responsible for its debts (Article 15). 
3.3.4  Taxation and incentives 
3.79.  Apart from the oil sector, at the federal le vel, the UAE has no taxes on income, wealth, or 
capital gains for individuals or corporations, although the authorities noted a full federal-level tax regime is under study. Oil companies pay up to 55% tax on UAE-sourced taxable income and 
royalties on production. At the emirate level, the Abu Dhabi Income Tax Decree of 1965, the Dubai 
Income Ordinance of 1969 and the Dubai Income Tax Decree, and the Sharjah Income Tax Decree of 1968 stipulate that each corporate body do ing business in the relevant emirate must pay 
corporation tax according to the following income scale, although in practice this applies only to oil 
and gas companies and branches of foreign banks: 
 less than or equal to Dh 1 million at 0%; 
 between Dh 1 million and 2 million at 10%; 
 between Dh 2 million and 3 million at 20%; 
 between Dh 3 million and 4 million at 30%; 
 between Dh 4 million and 5 million at 40%; and 
 greater than Dh 5 million at 55%. 
3.80.  Municipality service charges are levied on individuals living and working in the UAE. Service 
charge percentages vary among the emirates. In Du bai, a service charge of 5 to 10% is charged 
on food purchased in hotels and restaurants. Furt hermore, hotels charge a 10 to 15% market fee 
per night on room rates. These charges are usually included in the customer’s bill, which the municipality collects from restaurants and hotels. 
3.81.  There are two options to establish a business in the UAE: outside or inside a free zone. The 
investment regime onshore favours local over foreign investors. All investment projects have to have 51% domestic capital meaning that these companies are allowed a maximum of 49% foreign 
ownership. Incentives are given to foreign investors in the free zones. Outside the free zones, no 
incentives are given, although the ability exists to purchase property as freehold in certain 
predesignated areas in Dubai, which would appear to be an incentive aimed at attracting foreign investment. As noted above, the Federal Government and the Governments of the individual 
emirates promote a business environment largely free of taxation and exchange controls. 
3.82.  With the rise of Dubai as a regional hub for many international companies, one of the most 
successful policies has been the development of offshore free zones. Free zones contain financial 
incentives to establish manufacturing industries  in the UAE. These are primarily focused on 
                                               
37 IMF (2015), United Arab Emirates – 2015 Article IV Consultation – Press Release and Staff Report , 
IMF Country Report No. 15/219, Washington, August, p. 7. WT/TPR/S/338 • United Arab Emirates 
 
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  exemption from all taxes and duties levied on profits or production. An estimated 80% of the 
UAE's non-oil exports originate from the free zones. The major incentives offered by the UAE free trade zones are: 
 100% foreign ownership with 100% repatriation of capital and profits; 
 0% corporate taxes for 50 years; 
 no personal income taxes; 
 exemptions from customs duties in the free zones (Article 78a of the GCC Customs 
Code); 
 absence of currency restrictions; and 
 exemption from licensing, agency, emiratization and other domestic regulations that 
apply in the customs territory. 
3.83.  Free zones play a considerable role in the UAE economy since two-thirds of the non-oil 
products are exported from them, in particular machines and electronic devices. The UAE is home to nearly 40 free zones and economic specialized zones, all of which offer incentives to expatriate 
workers and investors. The highest concentration of free zones and economic specialized zones is 
in Dubai with more than half of the total num ber of free zones (23, out of which 14 are free 
zones
38), followed by Abu Dhabi (5). Specifically, free zone regulations permit 100% foreign 
ownership, compared to the 51% UAE citizen ow nership required outside of free zones under 
federal law – as well as tax, salary, and customs incentives for foreign investment and industry. 
3.84.  Free zones have their own independent authority with responsibility for licensing and 
helping companies establish their business. Investors can register new companies in a free zone, 
or licensed branch or representative offices. Free zones have limited liability and are governed by 
the laws and regulations of free zones. Companie s in free trade zones seeking to operate within 
the UAE may be governed by the new Commercial Companies Law, if the laws of the relevant free 
zone permit companies to operate outside of the free zones.  
3.85.  The most successful of the free zones is the Jebel Ali Free Zone (JAFZA) in Dubai, located 
20 km south of Dubai city adjacent to the Jebe l Ali Port. Over 6,000 companies representing 80 
countries have set up businesses in JAFZA, including numerous Fortune 500 firms. The JAFZA 
managing authority authorizes five types of licence: a trading licence for specific activities; a general trading licence (to trade in multiple commodities allowable under the permitted activities); an industrial licence; a national industrial licence; and a service licence. The licences are valid 
while a company holds a current lease in the free zone authority and are renewable annually as 
long as the lease is in force. Entities licensed in  the free zone can be in the form of a free zone 
company, a free zone establishment, or a branch of a local or foreign company. The licence is 
issued for any activity permitted by the free zo ne authority, including manufacturing. A JAFZA-
licensed company can only operate in JAFZA or outside the UAE, but business can be undertaken 
and sales made in the UAE through or to a company holding a valid Dubai Economic Department 
licence. However, a JAFZA-licensed company can pu rchase goods or services from within the UAE. 
3.86.  A variety of innovative free zones have been established in Dubai since 2000, most notably 
the Dubai Creative Cluster free zone (previously known as TECOM – Technology, Electronic Commerce and Media free zone). The Dubai Creative  Cluster houses both Internet City and Media 
City, two subdivisions which cater for the information technology and media sectors respectively. 
Dubai Creative Cluster offers a high bandwidth an d state-of-the-art IT infrastructure. Other Dubai 
free zones include the Dubai Multi Commodities Centre (DMCC), with over 8,000 licensed 
businesses trading across a range of commodities including gold, diamonds, pearls, precious 
metals, and tea; and Dubai Healthcare City, specializing in medical products and services. In addition, Dubai International Financial Centre (DIF C) is an offshore fina ncial centre, offering a 
platform for leading financial institutions and service providers. The DIFC was established as part 
                                               
38 Jebel Ali Free Zone, Gold and Diamond Park, Dubai Textile City, Dubai Auto Zone, Dubai Creative 
Clusters Authority (Dubai Internet City, Dubai Media City, Dubai Knowledge Village, Dubai International Academic City, Dubai Outsource Zone, Dubai Studio City , Dubai Science Park, International Media Production 
Zone, Dubai Design District), Dubai Airport Free Zone, Dubai Silicon Oasis, Meydan, Dubai Multi Commodities 
Centre, Dubai World Trade Centre, International Humanitarian City, Dubai Healthcare City, Dubai International Financial Centre, Dubai World Central. WT/TPR/S/338 • United Arab Emirates 
 
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  of the vision to position Dubai as an international hub for financial services and as the regional 
gateway for capital and investment. Internet usage in the free zones is not censored as it is elsewhere in the UAE. 
3.3.5  Competition policy and price controls 
3.3.5.1  Competition policy 
3.87.  The legal basis for competition policy in the UAE is set out in Federal Law No. 4 of 2012 on 
regulating competition (the Competition Law), which took effect on 23 February 2013 with a six-
month transition period for businesses to bring their practices into line with the new law, and its 
implementing regulations issued on 27 October 2014. 
3.88.  In addition to the Law on Competition there are several other laws affecting some aspects of 
competition or affecting competition within specific sectors. Federal Law No. 24 of 2006 on 
Consumer Protection focuses on consumer rights generally and established the Consumer 
Protection Department in the Ministry of Economy, with, inter alia, the responsibility to work 
towards "achieving the principle of fair competition and combating monopoly" (Article 4). Other 
laws affecting competition include Federal Laws : No. 4 of 1979 on the Suppression of Fraud and 
Deception in Commercial Transactions; No. 10 of 1980 on the Central Bank, the Monetary System, and Regulating the Banking Profession (as amended); No. 18 of 1931 Regulating Commercial 
Agencies (as amended); No. 8 of 1984 on Commercial Companies (as amended); No. 6 of 1985 on 
Banks, Financial Institutions, and Islamic Banking; and No. 3 of 2003 Regulating the 
Telecommunications Sector (as amended). 
3.89.  The Competition Law sets out the basic objectives of protecting and promoting competition 
and maintaining a competitive market governed by market mechanisms. The Law does not apply 
to: 
 some sectors which are covered by sector-specific legislation or regulations, including: 
telecommunications; financial services; cultural activities; oil and gas; production and 
distribution of pharmaceuticals; postal services; production, distribution, and transmission of electricity and water; environmental services; and transport services;  
 Acts undertaken by the federal and local go vernments, acts undertaken by enterprises 
acting upon the authority of federal or loca l government, including acts of enterprises 
owned or controlled by the Federal Government or local government in accordance with rules to be set by the Cabinet; and 
 small and medium-sized enterprises. 
3.90.  Apart from these exclusions, the Law applies to all "enterprises and business sectors", 
where an enterprise is defined as: "Any natural or legal person practicing an economic activity, 
any person associated therewith, or any combination of these persons, regardless of its legal 
form". 
3.91.  Restrictive agreements (Article 5) and abuse of dominant position (Article 6) are prohibited 
and economic concentrations (Article 9) that may affect competition in the relevant market require 
prior approval from the Minister of Economy. The term economic concentration is broadly defined to include any act that results in the full or partial transfer of title, shares, assets or liability that 
enables an enterprise to have direct or indirect control of another enterprise or group of 
enterprises. 
3.92.  The Law provides for the formation of the Competition Regulation Committee in the Ministry 
of Economy with a mandate that includes responsibility to propose policy and legislation on 
competition, make recommendations on the implementation of the Law, and examine requests for 
reconsideration of decisions made by the Minister. The Committee is also responsible for recommending to the Minister the exclusion of certain restrictive agreements or practices relevant 
to a dominant position (Article 13). The Ministry 's responsibilities include the implementation of 
policy, investigating alleged violations of the Competition Law, based on complaints received from the public or on its own initiative, and making recommendations to address alleged violations (Article 14). WT/TPR/S/338 • United Arab Emirates 
 
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  3.93.  The Competition Law also sets out the penalties for infringement which include fines for 
restrictive agreements or abuse of dominant posi tion varying between Dh 0.5 and Dh 5.0 million, 
and fines for violations of the provisions on economic concentration varying between 2 and 5% of annual sales of goods or revenues from services that are in violation of the Competition Law or a 
fine of between Dh 0.5 and Dh 5.0 million if  the sales or revenues cannot be determined. 
3.94.  Resolution of the Council of Ministers No . 37 of 2014 concerning the Executive Regulation of 
Federal Law No. 4 of 2012, which came into force on 27 October 2014, provides further details on 
the implementation of the Competition Law by setting out:  
 the procedures an enterprise should follow in seeking an exclusion from restrictive 
agreements or practices relevant to dominant position, and in applying for approval for completing economic concentration operations; 
 the process by which the Ministry of Econ omy considers these requests, including the 
Ministry's right to ask parties that may be affected by these requests to provide their opinions, and its consideration of legal and economic aspects; 
o if the request is related to restrictive agreements or abuse of dominant position 
practices, the Ministry's report is then sent to the Competition Regulation Committee which makes a recommendation to the Minister who may then approve, 
approve with conditions, or reject the request; 
o if the request is related to economic conc entration, the Ministry's report is then 
sent directly to the Minister who may then approve, approve with conditions, or reject the request;  
o for all requests, if no decision is issued within 90 days (with a possible addition of 
another 45 days) of the Minister receiving the report regarding economic concentrations or the Ministry declaring that all the conditions related to the 
requests concerning restrictive agreements or abuse of dominant position practices 
are met, the request is deemed to have been accepted; 
 the procedures by which any concerned party may make a complaint to the Ministry 
about a violation of the Competition Law, or by which the Ministry may, on its own 
initiative, carry out an investigation, and the procedure for the investigation, and the decision by the Minister; and 
 the procedure for examination by the Committee of the requests regarding 
reconsideration of the decisions made by the Minister. 
3.95.  According to the law, the UAE Cabinet has responsibility for determining the various 
thresholds necessary for the implementation of the Law (the de minimis exception relating to 
restrictive agreements (Article 5.3); and markets shares relating to abuse of dominant position 
and economic concentration). As at end-February  2016, these thresholds had not been defined, 
although the authorities stated that a Cabinet decision defining them would be issued soon. 
According to the authorities, at end-February 2016, one formal investigation (on economic 
concentration) was under way, although the Comp etition Regulation Committee was also involved 
in responding to general queries requesting clarification of aspects of the Law and its implementing regulations from the private sector. 
3.3.5.2  Price controls 
3.96.  The Law on Consumer Protection  focuses on consumer rights generally through its 
provisions on labelling, price information, provider responsibilities, general conformity 
requirements, etc. It provides the legal basis for the Minister of Economy to apply price controls 
"in case of an extraordinary crisis or conditions on the market leading to an unnatural increase in prices" (Article 3). It also established the Consumer Protection Department in the Ministry of 
Economy and gave the Department responsibilities that include working towards "achieving the 
principle of fair competition and combating monopoly" (Article 4). However, in general, prices are decided by market forces in the UAE. The Consum er Protection Department does monitor prices 
but, according to reports, the objective is to improve consumer awareness and to ensure market 
forces are allowed to work.  WT/TPR/S/338 • United Arab Emirates 
 
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  3.97.  The Ministry of Health publishes a list of  prices for about 8,000 pharmaceutical products. 
The prices are decided through consultations between the Ministry and the pharmaceutical companies. 
3.98.  As part of its regulatory role, the Telecommunications Regulatory Authority (TRA), 
established under the Telecommunications Law , is responsible for policy and procedures relating 
to price controls in the sector. The policy for price control is set out in TRA's Regulatory Policy – Price Control, and the procedures by which price co ntrols are decided is set out in the Regulatory 
Procedures – Price Control, both dated 23 September 2008. The documents cover all retail and 
wholesale prices under the oversight of the TRA,  except interconnection services, and require 
notification and prior approval from service provid ers for any change in price and allow the TRA to 
amend, revoke, or suspend an existing approval should circumstances warrant such action. 
Interconnection prices are also set by the TRA for a range of interconnection services.  
3.99.  Price controls also apply in the electricity and water sector. In Abu Dhabi, under Law No. 2 
of 1998, the Regulation and Supervision Bureau sets prices for the monopoly companies created 
for the purchase of water and electricity and their distribution, the electricity transmission system, 
and the collection, treatment, and disposal of  sewage. In Dubai, the emirate-owned Dubai 
Electricity and Water Authority, which owns and operates electricity and water generation 
transmission and distribution networks and systems,  sets the electricity and water tariff under the 
supervision of the Dubai Supreme Council of Ener gy and subject to the approval of the Dubai 
Executive Council. 
3.100.  In August 2015, subsidies for transport fuels were removed and a committee in the 
Ministry of Energy now determines retail prices for petrol and diesel based on the average price 
from several international sources with a margin for the two distribution companies (Abu Dhabi National Oil Company and Emirates National Oil Company). Each month, the Ministry of Energy 
publishes the prices for petrol and diesel  that  are controlled by the distribution companies and 
related to international prices. 
3.3.6  Government procurement 
3.101.  The UAE is not a party to the WTO Plurilateral Agreement on Government Procurement or 
an observer in the Government Procurement Committee. As a federation, most public procurement is carried out at the level of the emirates – in 2014 total expenditure on goods and services by the 
Federal Government was Dh 17 billion, and Dh 37.4 billion by local governments.
39 
3.102.  At the federal level, the principal legisl ation on government procurement is set out in 
Cabinet Resolution No. 32 of 2014 concerning the Procurement and Warehouse Management 
Regulations at the Federal Government which aims to ensure the efficiency and effectiveness of 
the procurement process through, inter alia , the development of the e-procurement system. The 
Resolution applies to the Federal Government, ministries, government agencies, and specific federal entities, including the General Authority for Civil Aviation, Emirates Real Estate 
Corporation, Federal Electricity and Water Authority, Emirates Securities and Commodities 
Authority, Insurance Authority, Emirates Post Group Holding, National Transport Authority, Telecommunications Regulatory Authority, UAE Un iversity, and Zayed University. The Regulation 
does not apply to the Ministry of Defence, the State Security Body, or to purchases of a military 
nature by the Ministry of Interior which are set out in separate legislation.
40 
3.103.  In addition to the federal law, there are public procurement laws at the emirates level, 
such as the Law No. 6 of 2008 on Procurements, Te nders, Bids and Warehouses in Abu Dhabi and 
Law No. 6 of 1997 on Contracts of Government Departments (as amended by Law No. 8 of 2014) 
in Dubai. 
3.104.  The authorities noted that the Supreme Legislation Committee is preparing a new law on 
government procurement for the UAE which is expected to become law during 2016. 
                                               
39 Central Bank of the UAE (2015), Annual Report 2014 , Abu Dhabi, Table 2.8. 
40 Decree No. 12 of 1986 of the Deputy Supreme Commander of the Armed Forces (the Armed Forces 
Procurement Regulations). WT/TPR/S/338 • United Arab Emirates 
 
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  3.105.  Responsibility for public procurement is with the federal entities to which Cabinet 
Resolution No. 32 of 2014 applies, each of which is  required to have a Procurement Organizational 
Unit responsible for the procurement process, and a Procurement Committee, a Proposals Opening and Bids Receiving Committee, and an Inspecti on and Acceptance Committee responsible for 
oversight and different aspects of the process (Articles 8-10). 
3.106.  The primary objective of public procurement is value for money which is defined as the 
best combination of quality, cost, expected lifetime,  or suitability to meet the needs of the federal 
entity concerned, and contracts are to be awarded based on the bid which offers the most 
economically advantageous bid and the lowest price (Article 6). 
3.107.  The Ministry of Finance is required to mainta in a registry of suppliers with all data required 
for the procurement process. In order to be listed in the registry, a supplier must be a citizen of 
the UAE, a company registered in the UAE, or a br anch of a foreign company operating in the free 
zones (provided it is registered in the UAE), and it must be licensed to practice commercial activities in the UAE (Article 49). The Procurement Organizational Unit in each federal entity is 
required to evaluate suppliers and remove them fr om the registry or classify them as qualified, 
approved, or listed suppliers (Articles 50-52). 
3.108.  A price preference of 10% of the public procurement is granted to companies with up to 
Dh 10 million in capital and at least 51% owned by  UAE nationals or owned by GCC nationals, and 
companies receiving subsidies from the SME supporting funds (Article 59). 
3.109.  Procurement by the federal entity may be  by one of several methods depending on the 
value and nature of the procurement (Table 3.6) . In addition, in specific circumstances the 
Resolution allows for negotiation (Article 24), fast track procedures (Article 28), cases where a 
single bid is received, proposals are mostly from unregistered suppliers, or proposals are of higher specification than the request (Article 30), direct orders (Article 33), and flexible purchase 
(Article 34). The Resolution also makes provisions for purchase through loans (Article 35), and 
long term pricing agreements (Article 36). 
Table 3.6 Selected procurement methods and criteria 
Method Criteria Requests to Submission period 
Price quotation and 
purchase orders Dh 10,000 to 55,000 3 registered suppliers 15 days from the day following 
the request of quotes 
Limited procedure Dh 55,000 to 3 million Registered suppliers 40 days from 2nd day of 
sending request 
Two-stage limited 
tender Dh 55,000 to 3 million All qualified suppliers 
(minimum 3) 1. Selection of qualified 
suppliers – 37 days from the 
day following the announcement of the selection process; and 2. Forty days from the day following the sending of the request for a proposal 
General procedure 
(tenders) Dh 3 million or more General invitation through 
e-procurement and 
publications 60 days from 2nd day of 
sending details to suppliers 
who purchased the tender 
documents 
Competition Logos, stereographs, drawings 
and engineering sketches  General n.a. 
Competitive 
discussion Dh 3 million or more and  
contract is multi-stage, 
overlaps with other projects, 
term is more than one year, 
or requires more than one 
supplier Qualified and registered 
suppliers 37 days from the day following 
the sending of the 
announcement 
Direct order Single source, emergency, 
urgent need Supplier n.a. 
n.a. Not applicable. 
 Source: Cabinet Resolution No. 32 of 2014 concerning the Procurement and Warehouse Management 
Regulations at the Federal Government, Articles 16-34. WT/TPR/S/338 • United Arab Emirates 
 
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  3.110.  Authority to approve contracts lies with the federal entity and depends on the procurement 
method and the value of the contract (Table 3.7). 
Table 3.7 Public procurement thresholds for approval 
Procurement 
method Concerned 
Minister Assistant Undersecretary 
of the Ministry or Director Undersecretary of the 
Ministry or Director General 
Tenders Without upper limit Dh 7 million Dh 3 million 
Limited tender Without upper limit Dh 3 million Dh 1.5 million 
Direct order Without upper limit Dh 1 million Dh 0.5 million 
Assigning order Without upper limit Dh 250,000 Dh 55,000 
Source: Cabinet Resolution No. 32 of 2014 concerning the Procurement and Warehouse Management 
Regulations at the Federal Government, Articles 4. 
3.111.  The Resolution also aims to improve tr ansparency through publication requirements and 
the development of the e-procurement system which is accessible to all registered suppliers.41 All 
tenders, limited tenders, competitions and contracts of a value greater than Dh 55,000 for supply 
and service contracts, or Dh 100,000 for works contracts, must be announced through the 
e-procurement system "or any other method which the federal entity deems appropriate" (Article 37). At end-February 2016, 899 tenders had been executed in e-procurement mode. 
3.112.  The GCC-Singapore and GCC-EFTA trade agreements cover government procurement 
above the thresholds set out in these agreements (Table 3.8). 
Table 3.8 Public procurement by the UAE Fede ral Government thresholds under regional 
trade agreements 
(SDR) 
Agreement Goods Services Construction services 
GCC-EFTA 147,400 147,400 6,438,400 
GCC-Singapore 134,000 134,000 5,844,000 
Source: Information provided by the UAE authorities. 
3.3.7  Intellectual property rights 
3.3.7.1  Overview 3.113.  Since its last TPR in 2012, the UAE has not made any substantial changes to its intellectual 
property regime
42 and the UAE continues its harmonization efforts within the GCC. 
3.114.  The principle legislation on intellect ual property rights is the Copyright Law43, the Patent 
and Design Law44, and the Trademarks Law.45 In addition, at the GCC level, there are the GCC 
Unified Patent Law of 1992 (as amended) and the Unified Trademark Law of 2006. 
3.115.  The UAE is a member of WIPO (since 1974); the Paris Convention (1996); the Patent 
Cooperation Treaty (1999), the Berne Convention  (2004); the Rome Convention (2004); the WIPO 
Copyright Treaty (2004); and the WIPO Performa nce and Phonograms Treaty (2005). In addition, 
as a member State of the GCC, the UAE is a party to the GCC patent system.46 The UAE is not a 
member of the International Union for the Protection of New Varieties of Plants. 
                                               
41 United Arab Emirates eProcu rement website. Viewed at: https://eprocurement.uaeu.ac.ae/ . 
42 WTO document WT/TPR/S/262/Rev.1,  3 May 2012, Section III(4)(v). 
43 Copyrights and Neighboring Rights Law No. 7 of  2002, as amended by the Federal Law No. 32 of 
2006. 
44 The Patent and Design Law No. 17 of 2002, as amended by the Federal Law No. 31 of 2006. 
45 Federal Law No. 37 of 1992 on Trademarks, as amended by Law No. 19 of 2000 and Law No. 8 of 
2002. 
46 For more information on membership in variou s IP-related treaties and agreements, see WIPO 
country statistics. Viewed at: http://www.wipo.int/wipolex/en/profile.jsp?code=AE  [January 2015]. WT/TPR/S/338 • United Arab Emirates 
 
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  3.116.  In February 2014, the Ministry of Economy signed a Memorandum of Understanding with 
the Korean Intellectual Property Office (KIPO) to promote IP awareness, undertake prior art search 
and substantive examination on patent applications in the UAE, to transfer knowledge on development and operating systems, and for the exchan ge of IP officials. The exchange of officials 
includes KIPO staff working as consultants in the UAE, and examiners from KIPO undertaking prior 
art search and substantive examination of patent and utility model applications in the UAE. 
3.117.  The Government institution responsible for intellectual property matters is the Ministry of 
Economy. The Federal Customs Authority and the cu stoms authorities of the emirates deal with 
enforcement of IPRs at the border. 
3.118.  In April 2015, under Ministerial Resolution No. 9 of 2015, the Ministry of Economy 
increased fees for patent, copyright, and trademarks with effect from 29 May 2015. For 
trademarks, registration and renewal fees were increased from Dh 5,000 to 10,000, fees for filing 
a patent by a business were increased from Dh 790 to 2,000, and, for copyrights, the recordation fee for a business was increased from Dh 30 to 300 for a legal person and to Dh 100 for a natural 
person. 
3.3.7.2  Patents 3.119.  There have been no major changes in pa tent legislation in the UAE during the review 
period.
47 Patents are protected under the 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 and the GCC Patent Law. Patents in the UAE operate under two international agreements and one regional agreement: the Pa ris Convention; the Patent Cooperation Treaty 
(PCT) system; and the Gulf Cooperation Council (GCC) patent system. The GCC patent system 
provides a mechanism for regional filings of patent applications within the GCC countries. The GCC is not part of the PCT system, so patent applications of local interest only may be filed through the 
GCC system. 
3.120.  The UAE grants patents to new inventions that meet the criteria of novelty, inventive 
concept and industrial applicability. All patent applications filed at the UAE Patent Office are 
subject to examination. Utility certificates may be granted to inventions capable of industrial 
exploitation that do not necessarily involve an inventive step as sophisticated as a patent. Unpublished know-how, industrial drawings, and indu strial models are also protectable. Under the 
Patent Law no patent or utility certificate may be issued for: plant varieties
48, 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; scientific and mathematical principles , discoveries, and methods; guides, rules, or 
methods for business, mental activities, or to play games; or inventions that may lead to violation 
of public order or morals. 
3.121.  Patent protection for a UAE or GCC patent runs for 20 years from the original filing date 
while utility models and industrial designs are prot ected for 10 years from the original filing date. 
Any patent licence must be recorded with the Ministry of Economy. Failure to do so will mean the licence has no effect against third parties. 
3.122.  Following a sharp increase in the number of patent applications in the period 2000-07, 
applications fell in 2008, due to the global financial crisis. Since then the annual number of 
applications has stabilized at about 1,200-1,400. The majority of applications are national phase entries under the Patent Cooperation Treaty. The statistics on patent applications and patent 
grants in the UAE are in Table 3.9. 
                                               
47 WTO document WT/TPR/S/262/Rev.1 3 May 2012, paras. 135-139. 
48 Plant varieties are covered by Federal Law No. 17 of 2009 on the Protection of New Plant Varieties. WT/TPR/S/338 • United Arab Emirates 
 
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  Table 3.9 Patents applications and patent grants in the UAE (2011-14)  
Year National applications PCT national phase entries 
Applications   
2011 113 1,238 
2012 98 1,253 
2013 92 1,334 
2014 88 1,383 
Granted   
 Patents Industrial designs 
2011 100 150 
2012 40 266 
2013 63 215 
2014 110 368 
Source: Information provided by the UAE authorities. 
3.3.7.3  Copyrights and related rights 
3.123.  There have been no changes to the copyright legislation in the UAE since the last review.49 
Under the provisions of Federal Law No. 7 of 2002 concerning Copyrights and Neighbouring Rights, 
as amended by the Federal Law No. 32 of 2006, copy right protection is granted to various types of 
literary, artistic, dramatic and musical work. It confers a right to prevent third parties from 
copying without consent and deals with infringing works. 
3.124.  Copyright arises automatically upon the cr eation of an original work in material form, 
provided it is not in a category that is excluded from protection, such as legal texts, news reports, 
and works in the public domain. Registration is no t required to achieve protection but registration 
would facilitate the burden of proof in legal proceedings. 
3.125.  The protection of written works lasts for the lifetime of the author plus 50 years. 
Cinematographic works and works of corporate bodies are protected for 50 years from the date of 
publication. Works of applied art are protecte d for 25 years from the publication date and 
broadcasts are protected for 20 years from the date of first broadcast. 
3.126.  As the UAE is a party to the Berne Conventi on on the Protection of Literary and Artistic 
Works, any works created by nationals of other Berne Convention states are recognized in the 
UAE. 
Table 3.10 Copyright works: registration re quests and approvals, and registration 
requests from distributors, 2012-15  
 2012  2013  2014 2015  
Registration requests 736 645 567 583 
Registration approvals 555 508 420 399 
Registration requests by 
distributors of works 382 383 441 492 
Source: Information provided by the UAE authorities. 
3.3.7.4  Trademarks 
3.127.  Within the UAE, trademark legislation has not changed during the review period.50 The 
Federal Law No. 37 of 1992 on Trademarks (as amended by Federal Laws No. 19 of 2000 and 
No. 8 of 2002) and its implementing regulations gove rn the protection of trade or service marks. A 
mark must be distinctive and not identical or confusingly similar to earlier marks. 
3.128.  Trademarks are registered with the UAE Tr ademark Office in one of the classes within the 
standard international classification of goods and services. The UAE does not permit applications 
                                               
49 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, paras. 142-147. 
50 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, paras. 148-153. WT/TPR/S/338 • United Arab Emirates 
 
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  that cover multiple classes – so separate applications have to be filed for marks used across 
different classes. 
3.129.  Trademarks are granted for a ten-year initial term and can be renewed indefinitely for 
periods of ten years at a time. Trademarks that ar e not used for five consecutive years may be at 
risk of cancellation claims by third parties. Any trademark licence must be recorded with the 
Ministry of Economy. Failure to do so will mean the licence has no effect against third parties. However, the Law states that a trademark of international reputation may not be registered unless 
a request is made by its original owner, or someone acting on his/her behalf (Article 4). 
3.130.  The statistics on trademark applications and registrations in the UAE for the period of 
2012-14 are in Table 3.11. 
Table 3.11 Trademark applications and tr ademark registrations in the UAE (2012-14)  
Year Resident Non-resident Abroad 
Trademark applications 
2012 4,130 12,668 6,883 
2013 5,293 13,454 11,055 
2014 6,464 13,915 12,294 
Trademark registration 
2012 2,184 7,801 5,726 
2013 2,570 10,766 8,210 
2014 5,168 13,784 9,787 
Source: WIPO Statistical Country Profiles. 
3.131.  The GCC Common Trademark Law was approved by the Supreme Council for the GCC 
member States in 2012 and the member States are to apply the law within six months from the 
date of approval of the Trade Cooperation Committee of the Executive Regulation. The implementing regulations for the Law were approved by the Commercial Cooperation Committee in September 2015. The UAE is in the process of ratifying and adopting the GCC Law. The Law aims 
to create a single set of regulations for trademark protection that applies uniformly across all the 
GCC States. However, it does not provide for unitary registration or a single enforcement system. The trademark offices of each GCC member State are to continue to receive applications and 
register trademarks. Therefore, registering a trademark in all six GCC States will require filling six 
separate national trademark applications. 
3.132.  Among its provisions the GCC Law provides for protection of well-known marks by 
prohibiting registration of marks that copy or  translate a well-known mark or part thereof, 
including for different goods and services, if that might cause confusion or damage the owner's interests. It also provides for the presumption that the use of a similar or identical mark to a registered mark will lead to confusion, thus putti ng the burden of proof on the user of the similar 
or identical mark. Penalties for infringement under the GCC Law include the possibility of 
imprisonment and fines ranging from SAR 5,000 to SAR 1 million for first time offenders.
51 
3.3.7.5  Enforcement 
3.133.  In order to establish an environment that  promotes innovation and encourages investment 
in IP-related areas, the UAE has implemented programmes to increase awareness regarding IP protection. 
3.134.  All major laws on patents and designs, copyrights, and trademarks include provisions that 
intend to prevent violations of intellectual property rights. Thus, various provisions of each of these laws lay down penalties for IPR violations that include monetary fines and prison sentences. 
3.135.  Customs is entitled to take measures at the border to prevent violations of IPRs both 
under the UAE’s IPR laws and customs regulations.  Customs authorities also have the right to 
seize and destroy illegal goods. 
                                               
51 Al Sultani, S., and Deans, R. (2014 ), WIPO Magazine , "GCC Trademark Law Coming Soon", 
September 2014. WT/TPR/S/338 • United Arab Emirates 
 
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  3.136.  Police departments in each emirate have Commercial Crimes Departments which carry out 
raids, and are equipped with laboratories to exam ine counterfeit goods and provide reports on the 
similarities and differences between genuine and counterfeit products. WT/TPR/S/338 • United Arab Emirates 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture and Fisheries 4.1.1  Overview 4.1.  Agriculture represents a small and declining part of the UAE economy and of employment, at 
less than 1% of GDP and less than 1% of total em ployment. In nominal terms, the contribution of 
agriculture, livestock, and fishing increased from Dh 8.9 billion in 2006 to Dh 9.9 billion in 2014, but in real terms it declined by an average of 3.7% per year over the same period. The number 
employed in agriculture has increased steadily  since 2011 reaching 34,557 in 2014 – although this 
is only 0.8% of the workforce and prac tically all of them are expatriates. 
4.2.  Agricultural land may be owned by nationals of the UAE or other GCC member States only, 
although non-GCC nationals may own up to 49% of an agri-business.
1 
4.3.  Statistics for the production of crops show a decline over the past few years with significant 
reductions in the production of fruit trees in 2009 and field crops in 2012, leading to a 60% drop in the value of production in 2013 compared to 2008 (Table 4.1). The decline in the area under fruit 
trees is largely due to a change in methodology in Abu Dhabi. The decline in field crops was the 
result of a policy change in Abu Dhabi to rationalize the use of irrigation water and restrict the cultivation of Rhodes grass (Section 4.1.3  ). In value terms, the main field crops are Rhodes grass 
(despite a considerable reduction) and sorghum, the main vegetables are cucumbers and 
tomatoes, and the main fruits are dates. 
Table 4.1 Crop production in the UAE, 2006-13 
Year Field crops Vegetables  Fruit trees 
 Area Production Value Area  Production  Value  Area Production Value  
 000 ha 000 tonne million 
Dh 000 ha  000 tonne  million 
Dh 000 ha 000 tonne million 
Dh 
2006 25.40 1,702.4 2,667.7 6.26  199.1  323.5  187.68 783.8 2,065.9  
2007 22.75 1,986.6 3,097.9 3.90 148.5  238.6  187.58 790.1 2,101.4  
2008 29.41 1,662.5 2,754.6 5.21  242.2  511.8  188.24 797.5 2,162.9  
2009 28.22 1,573.7 2,595.2 4.79 172.1  334.1  36.57 278.6 1,111.2  
2010 29.55 1,664.0 2,606.3 5.03  151.9  309.2  41.67 296.1 1,082.0  
2011 22.56 744.6 1,110.5 5.02 148.8  333.2  43.40 262.8 1,076.9  
2012 4.53 183.7 405.7 4.77  155.6  364.0  39.61 228.4 1,164.1  
2013 4.63 153.6 342.0 3.94 119.2  283.6  39.75 250.1 1,455.4  
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
4.4.  In contrast to the production of crops, the number of livestock and the value of livestock 
production and animal products have increased ov er the past few years – except for the number of 
cattle on non-commercial farms, which has declined (Table 4.2 and Table 4.3). Although unit 
prices of milk, broiler meat, and eggs have increased slightly since 2010, most of the increase in 
the value of production of livestock and livestock products on commercial farms is the result of the increase in the quantity produced (Table 4.3). 
                                               
1 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, Chapter IV, para. 19. WT/TPR/S/338 • United Arab Emirates 
 
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  Table 4.2 Livestock numbers in the UAE, 2006-13 
Year Cattle (non- 
commercial farms) Sheep Goats Camels 
2006 58,838 1,113,775 1,626,087 359,341 
2007 61,927 1,172,325 1,707,838 378,227 
2008 65,179 1,233,953 1,793,695            398,107 
2009 76,502 1,475,036 1,940,908 457,131 
2010 58,712 1,350,665 1,883,630 358,027 
2011 58,776 1,386,828 1,899,554 363,807 
2012 44,321 1,841,829 1,579,164 364,378 
2013 50,104 2,082,926 1,850,464 392,667 
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
Table 4.3 Livestock and animal products on commercial farms in the UAE, 2010-13 
Year Cattle Milk New born 
calves Broiler meat  Table eggs  Hatchery eggs  
 Numbe r Tonnes 000 Dh Numbe r 000 Dh  Tonnes  000 Dh  Million 
eggs 000 Dh Million 
eggs 000 Dh  
2010 27,408 106,272 240,667 10,062  23,392  47,148  488,168  616 253,645 28 28,621  
2011 29,841 123,346 282,894 13,329  21,731  52,742  526,627  653 258,241 19 23,254  
2012 34,396 142,352 325,252 17,383  22,132  45,884  526,624  729 310,049 .. .. 
2013 32,225 160,946 365,091 16,748  37,035  51,683  603,872  741 320,494 24 28,117  
2014 35,485 170,930 410,414 17,195  38,250  51,772  591,767  849 356,667 37 52,666  
.. Not available. 
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
4.5.  Among the emirates, Abu Dhabi is the most important agricultural producer with more 
livestock than the other emirates together and slightly more than one-third of the value of crop production. However, within crop production, Ras al-Khaimah produces over one-third of the value 
of vegetable and field crop production. 
4.1.2  Trade 4.6.  The UAE is a net importer of agriculture and fishery products, which made up about 9% of 
the value of total imports in 2014. Taking HS head ings 1-24 as agricultural and fisheries trade, 
imports were over Dh 61 billion in 2014, while exports (not including re-exports) were Dh 11 billion. Both imports and exports of agricu lture and fishery products increased during 2011-
2014, although their share of total trade (excluding oil and re-exports) declined slightly (Table 4.4 
and Table 4.5). 
Table 4.4 Imports of fish and agricultural products, 2011-14 
(Dh million) 
  2011  2012  2013  2014 Top 3 suppliers  
1 Live animals 618.0  646.0  876.0  989.0 Oman, India, Somalia  
2 Meat and edible meat offal 5,003.0  5,420.7  5,775.1  5,840.4 Brazil, Australia, India  
3 Fish, crustaceans, molluscs and aquatic 
invertebrates 1,338.7  1,547.6  1,609.9  2,115.3 India, Viet Nam, Pakistan  
4 Dairy products, honey and edible 
products of animals 4,298.3  4,887.5  5,374.2  6,533.0 New Zealand, Saudi Arabia,
Netherlands 
5 Products of animal origin n.e.s. 12.3  15.4 20.0 14.5 United States, Brazil, Qata r 
6 Live trees, plants and their parts 139.0  145.4  177.1  214.5 Netherlands, Kenya, 
Thailand 
7 Edible vegetables, certain roots and 
tubers 3,595.4  3,206.1  3,598.3  3,781.8 India, Canada, China  
8 Edible fruits, nuts, peel of citrus fruit 
and melons 5,243.4  5,769.7  6,674.2  7,618.1 United States, India, South  
Africa 
9 Coffee, tea, mate and spices 3,078.9  2,903.9  3,172.6  3,540.9 Free zones, Viet Nam, Indi a
10 Cereals 6,647.1  4,996.1  4,887.0  5,259.3 India, Pakistan, Canada  
11 Products of the milling industry 286.9  346.2  358.6  388.4 India, Argentina, France  
12 Oil seeds, industrial or medicinal plants 
and fodder 5,200.2  5,206.1  5,268.9  4,649.2 Spain, Canada, United 
States WT/TPR/S/338 • United Arab Emirates 
 
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    2011  2012  2013  2014 Top 3 suppliers  
13 Lac; gums, resins, vegetable saps and 
extracts 84.4 107.5  139.2  152.9 India, Turkmenistan, 
Lebanon 
14 Vegetable plaiting materials and 
products n.e.s. 24.3 21.4 21.4 19.1 India, Oman, Pakistan  
15 Animal or vegetable fats, oils and waxes 3,174.0  2,628.6  2,105.4  2,198.4 Indonesia, Malaysia, Saudi 
Arabia 
16 Preparations of meat, fish, crustaceans 
and molluscs 748.8  908.9  946.2  1,045.5 Thailand, United States, 
Saudi Arabia 
17 Sugars and sugar confectionery 1,656.0  2,274.8  1,885.8  1,494.6 Free zones, India, Thailand  
18 Cocoa and cocoa preparations 1,186.3  1,279.4  1,489.6  1,808.1 Netherlands, Switzerland, 
Malaysia 
19 Preparations of cereals, flour starch or 
milk 2,062.3  2,360.9  2,728.4  2,997.3 Saudi Arabia, Australia, 
United States 
20 Preparations of vegetables, fruit, nuts, 
etc. 1,567.0  1,662.1  1,775.2  2,120.2 Saudi Arabia, United States
Netherlands 
21 Miscellaneous edible  preparations 2,297.5  2,547.0  2,422.0  2,628.8 Egypt, Turkey, France  
22 Beverages, spirits and vinega r 1,455.0  1,597.4  1,676.8  2,296.5 France, Germany, Japan  
23 Residues and waste of food industries: 
animal fodder 403.6  728.0  567.5  1,001.2 Argentina, Brazil, United 
States 
24 Tobacco and manufactured tobacco 
substitutes 907.3  1,921.7  1,727.4  2,596.8 Bulgaria, Germany, Turkey,
 Total imports headings 1-24 51,027.6  53,128.5  55,276.7  61,303.8 
 % all imports 10.5%  8.0%  8.1%  8.8% 
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
Table 4.5 Exports (excluding re-exports) of  fish and agricultural products, 2010-14 
(Dh million) 
  2011  2012  2013  2014 Top 3 destinations  
1 Live animals 50.3  55.2 98.6 119.3 Qatar, Saudi Arabia, 
Oman 
2 Meat and edible meat offal 7.0 19.2 31.7 28.0 Oman, Afghanistan, 
Iran 
3 Fish, crustaceans, molluscs and aquatic 
invertebrates 173.4  245.4  258.9  273.4 Egypt, Viet Nam, Oman  
4 Dairy p roduct, honey and edible 
products of animals 949.8  917.3  1,010.1  1,071.7 Oman, Iraq, Yemen  
5 Products of animal origin n.e.s. 0.5  0.2 2.4 2.7 Turkey, Oman, Lebanon  
6 Live trees, plants and their parts 29.3 17.4 18.8 18.9 Qatar, Jordan, Somalia  
7 Edible vegetables, certain roots and 
tubers 19.7 18.1 26.5 34.7 Oman, Afghanistan, 
Qatar 
8 Edible fruits, nuts, peel of citrus fruit 
and melons 116.9  176.9  264.1  312.8 India, Oman, Morocco  
9 Coffee, tea, mate and spices 24.1  184.3  391.3  355.2 Russian Federation,  
Ukraine, Iraq 
10 Cereals 22.5 25.4 2.7 3.5 Qatar, free zones, 
Oman 
11 Products of the milling industry 159.7  177.3  102.1  123.8 Somalia, India, Oman  
12 Oil seeds, industrial or medicinal plants 
and fodder 35.5 1.8 5.5 6.9 Saudi Arabia, Kuwait, 
Pakistan 
13 Lac; gums, resins, vegetable saps and 
extracts 16.4 5.3 4.3 33.8 China, Oman, Qata r 
14 Vegetable plaiting materials and 
products n.e.s. 0.0 0.0 0.0 1.2 India, Nigeria, China  
15 Animal or vegetable fats, oils and waxes 1,705.0  967.5  1,010.6  1,209.5 China, Oman, Iran  
16 Preparations of meat, fish, crustaceans 
and molluscs 75.4 75.5 96.2 110.1 Oman, Saudi Arabia, 
Egypt 
17 Sugars and sugar confectionery 1,964.9  1,545.9  2,005.0  1,570.4 Iraq, Ethiopia, Oman  
18 Cocoa and cocoa preparations 980.3  1,247.5  1,318.9  1,261.9 Saudi Arabia, Egypt, 
Kuwait 
19 Preparations of cereals, flour starch or 
milk 532.9  631.4  620.0  712.6 Saudi Arabia, Angola, 
Oman 
20 Preparations of vegetables, fruit, nuts, 
etc. 913.7  829.8  701.0  904.7 Egypt, Oman, Iraq  
21 Miscellaneous edible  preparations 616.1  664.7  893.6  767.7 Afghanistan, Oman, 
Saudi Arabia 
22 Beverages, spirits and vinega r 470.3  508.0  409.6  502.5 Oman, Iran, Libya  
23 Residues and waste of food industries: 
animal fodder 453.6  611.0  776.8  886.2 Viet Nam, Thailand, 
China 
24 Tobacco and manufactured tobacco 
substitutes 274.1  263.3  529.9  734.1 Oman, Iraq, Iran  WT/TPR/S/338 • United Arab Emirates 
 
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    2011  2012  2013  2014 Top 3 destinations  
 Total exports headings 1-24 9,591.1  9,188.3  10,578.5  11,045.6  
 % all non-oil exports (excluding re-
exports) 8.4%  5.4%  7.1%  8.4%  
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
4.1.3  Policies 
4.7.  Since 2006, the Ministry of Environment an d Water (MOEW) has been responsible for federal 
policies and preparing legislation on water security, food security, the protection of the 
environment, and biosecurity. The MOEW took over the functions and authorities of the Ministry of 
Agriculture and Fisheries, the Federal Enviro nment Agency, and the General Secretariat of 
Municipalities. The basic policy objective is to improve food security through trade and domestic 
production while respecting the environment and im proving water efficiency. It has been reported 
that the UAE is preparing an agricultural policy document for 2015-20302 which, at end-February 
2016, was under preparation.  
4.8.  The MOEW encourages the use of modern technology in agriculture, including modern 
irrigation and hydroponics in order to conserve water while it also provides extension services to farmers in order to increase productivity. Organi c farming is encouraged to improve environmental 
and economic sustainability and reduce the use of chemical inputs. 
4.9.  Since 2007, the Abu Dhabi Food Control Authority (ADFCA) has been responsible for 
developing agricultural policies in the emirate and the Abu Dhabi Farmers' Services Centre (ADFSC) is responsible for implementing the policy. Under the Agriculture and Food Safety Policy 
of 2012 policies for agricultural production are focused on: efficient use of land and water; 
assistance to producers to ensure environmental and economically sustainable production; and improving animal and plant health, including thro ugh protection of genetic resources. The policy 
also sets out, in general terms, common agricultural policies for research and development, social 
support, control of inputs, animal welfare, extension and training services, and compliance measures. 
4.10.  In Abu Dhabi, a farm entitled to use the Government marketing system is classed as a 
market farm and others as non-market farms. This classification is also used to determine the 
level and type of support for which farmers are eligible. Since August 2011, all farm owners in Abu Dhabi may become members of the ADFSC. There are 16,000 farmer members of the ADFSC, and, 
in practice, the ADFSC offers agricultural serv ices to all 24,000 farmers in the emirate. The 
services provided include:  
 a social support payment of Dh 90,000 annually,  which is available to farms that have 
stopped marketing Rhodes grass. An additional assistance programme, which was 
stopped at the end of 2015, provided Dh 10, 000 and was linked to a farmer signing the 
ADFSC date palm trees services contract. Beginning in 2016, the ADFCA and the ADFSC cancelled the date palm trees services contract and began using the funds for an 
additional assistance programme through which the ADFSC is implementing 
development programmes for the date palm sector for all farms in the emirate; 
 discounts on inputs, veterinary products, and tools and equipment purchased at Famers' 
Services Centre outlets; 
 access to the date palm services contract (which ended in 2016) at a reduced rate 
where the services contract provided a variet y of services, including extension services, 
training, and pest control. Contract prices ranged from Dh 15 per tree, for less than 199 
palm trees, to Dh 10 per tree, for more than 800 palm trees; and  
 rebates based on the ADFSC's financial performance.  
                                               
2 Malek, C. (2015), "UAE's first agricultural policy to benefit farming sustainability and profitability ", The 
National , 4 December. Viewed at: http://www.thenational.ae/uae/environ ment/uaes-first-agricultural-policy-
to-benefit-farming-sustainability-and-profitability  [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
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  4.11.  As shown in Table 4.1, the implementation  of the policy to rationalize the consumption of 
irrigation water has resulted in a sharp reduction in the area under irrigation since 2010-2011 when cultivation of Rhodes grass was banned in market farms in the Western Region of Abu Dhabi and since the ban was extended to all market farms in the emirate in 2011-2012.  
4.12.  The UAE has notified agricultural support to the WTO Committee on Agriculture for the 
years 2002 to 2014. According to the notifications, support to agriculture in the UAE has been exclusively in the Green Box since 2006. From 2007 to 2013, most support was for inspection 
services, followed by pest and disease control. Howe ver, the authorities stated that the notification 
for 2014 used a different methodology for calculatin g support levels and, therefore, it is not 
comparable to earlier years. In 2014, support for extension and advisory services was Dh 190 million, and for infrastructure Dh 138 million (Chart 4.1). 
4.13.  The average MFN tariff on agricultural tariff lines is 5.5% – which is higher than the overall 
average due mainly to the concentration of tariff  peaks on beverages, spirits, and tobacco. In 
other agriculture categories, the tariff varies from 0 to 5%. Over 22% of all the 1,197 tariff lines 
for agricultural products are duty free (Section 3.1.4). Agricultural goods from other GCC member 
States and nearly all agricultural goods from PAFTA may enter the UAE duty free. 
Chart 4.1 Domestic support to agriculture, 2014 
Agricultural research 
(plant and livestock)
2%
Pest and disease control
22%
Training services
1%
Extension and 
advisory services
43%Infrastructure
32%
Total support:  Dh 436.9 million. 
Source: WTO notifications. 
4.1.4  Fisheries 
4.14.  The fisheries sector employs only about 0.3% of the total workforce, or about 11,200 
people, most of them expatriates. Practically all fisheries are artisanal, except for a small purse 
seine fishery operating from Sharjah. Fishing methods vary and include fixed and floating gillnets, hand trolling and drop lines, fixed stake nets and gargoor (cage traps).
3 
4.15.  The capture side of fisheries is dominate d by small boats with a total catch of 73,203 tonnes 
in 2013, down from 96,453 tonnes in 2007 (Table 4.6) and over 100,000 tonnes in the late 1990s and early 2000s.
4 However, it has been reported that actual catch is well below the levels indicated 
                                               
3 FAO (2012), Report of the FAO Technical Workshop on a Spatial Planning Development Programme for 
Marine Capture Fisheries and Aquaculture,  Cairo, the Arab Republic of Egypt, 25-27 November 2012, p. 111. 
Viewed at: http://www.fao.org/docrep/018/i3362e/i3362e.pdf  [January 2016]. 
4 FAO online information, "Fisheri es and Aquaculture Country Profiles: The United Arab Emirates". 
Viewed at: http://www.fao.org/fishery/facp/ARE/en  [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
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  in the official statistics.5 In 2010, there were about 6,000 boats. In both value and quantity terms, 
demersal fish are most important, followed by pelagic, and then molluscs and crustaceans. 
Table 4.6 Fisheries catch in the UAE, 2007-13 
(Tonnes) 
 Abu 
Dhabi Dubai Sharjah Ajman Umm al-
Quwain Ras al-
Khaimah Fujairah Total Value 
million 
Dh 
2007 5,336  6,904  30,158  4,685  1,045  27,941  20,384  96,453  965 
2008 5,362  6,551  18,059  5,150  4,996  18,755  15,203  74,076  1,290 
2009 5,977  10,078  18,995  5,503  7,681  17,199  12,272  77,705  1,387 
2010 6,333  8,948  18,487  5,892  6,649  17,898  15,403  79,610  1,421 
2011 3,922  8,060  18,650  6,700  5,735  17,412  14,668  75,147  1,336 
2012 4,399  11,830  16,894  6,360  5,490  16,673  11,082  72,728  1,185 
2013 3,862  10,809  17,420  6,379  5,674  16,920  12,139  73,203  .. 
.. Not available 
Source: Federal Competitiveness and Statistics Authority. Viewed at: 
http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
4.16.  At the federal level, the Ministry of En vironment and Water is responsible for developing 
policies and preparing legislation and the authorities in each emirate implement the policy and 
may have regulations applicable locally. The main focus of policy is sustainability through effort 
(restricted fishing seasons and reserve areas) and gear restrictions, and promoting aquaculture for both direct production and restocking. The UAE is a member of the Regional Commission for Fisheries (RECOFI) which seeks to promote the development, conservation, rational management 
and best utilization of living marine resources, as well as the sustainable development of 
aquaculture within its area of agreement.
6 The UAE has signed but not ratified the UN Convention 
on the Law of the Sea, and it has neither signed nor ratified the UN Fish Stock Agreement, or the 
FAO Compliance Agreement. 
4.17.  A comprehensive fisheries survey in 2002 noted a sharp decline in demersal catch and 
estimated that 71% of demersal species and 48% of pelagic species were overexploited.7 The 
decline has been attributed to both ov erfishing and degradation of the coast.8 In 2011, the GCC 
concluded a regional survey of demersal fish stoc ks in the region. When the results of this trawl 
survey were compared to the 2002 and 1978 surveys it was found that demersal stocks had declined by 88-94% from 1978 levels. 
4.18.  The UAE is a net importer of fish and fish products and imports have increased considerably, 
for HS heading 03: from Dh 1,339 million in 2011 to Dh 2,115 million in 2014. Exports have also 
increased, from Dh 173 million in 2011 to Dh 273 million in 2014. Applied tariffs on fish and fish 
products range from 0 to 5%, lower than the bound duty average of 15%. 
4.19.  The main legislation for fisheries is Federal Law No. 23 of 1999
9 and Ministerial Resolution 
No. 302 of 200110 which required each emirate to establish a fishing regulation committee with 
responsibility for issuing fishing licences to fishermen, maintaining a register and issuing licences 
                                               
5 Al-Abdulrazzak, D. and Pauly, D. (eds.) (2013), "Est imating total fish extractions in the United Arab 
Emirates: 1950-2010", From dhows to trawlers: a recent history of  fisheries in the Gulf countries, 1950 to 
2010, Fisheries Centre Research Reports 21(2), pp. 53-59, Fisheries Centre, University of British Columbia. 
6 RECOFI members are Bahrain, Iraq , the Islamic Republic of Iran, Kuwait, Oman, Qatar, the Kingdom 
of Saudi Arabia, and the United Arab Emirates. 
7 Al Abdessalaam, T.Z. (2007), Marine Environment Conservation and Management Programmes in the 
Emirate of Abu Dhabi, presentation by the Environment Agency – Abu Dhabi.  
8 FAO (2012), Report of the FAO Technical Workshop on a Spatial Planning Development Programme for 
Marine Capture Fisheries and Aquaculture,  Cairo, the Arab Republic of Egypt, 25-27 November 2012, pp. 111-
112. Viewed at: http://www.fao.org/docrep/018/i3362e/i3362e.pdf  [January 2016]. 
9 Federal Law No. 23 of 1999 regarding the Exploitati on, Protection and Development of Living Aquatic 
Resources in the waters of the state of  the United Arab Emirates. Viewed at: http://faolex.fao.org/  [January 
2016]. 
10 Ministerial Resolution No. 302 of 2001 issuing the Implementing Regulation for Federal Law No. 23 of 
1999 on the exploitation, protection and development of li ving aquatic resources in the United Arab Emirates. 
Viewed at: http://faolex.fao.org/  (Arabic only) [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
- 65 - 
 
  for fishing vessels and fishing equipment. The Law also provides the legal basis for subsidiary 
legislation on effort, catch, and gear restrictions and explicitly prohibits:  
 all kinds of trawling nets, bottom set nets, nets made from nylon, and drift nets (Article 
26) and fishing with explosives or chemicals (Article 34); and 
 capture of sea turtles, fishing for sea mammals, or, except for research and with official 
permission, extraction of oysters, sponges, or coral (Article 28). 
4.20.  Under the Law, licences for fishing and fish ing boats may be granted only to citizens of the 
UAE or corporate bodies owned by such citizens (A rticle 4) and a fishing boat may not sail without 
its owner or a UAE citizen acting on his behalf on board (Article 31). 
4.21.  The MOEW has issued several resolutions restricting fishing over the past few years, 
including: 
 Cabinet Resolution No. 18 of 2012 which covers the administrative sanctions, 
penalties and fines that regulate activities related to the fishing industry; 
 Ministerial Decree No. 372 of 2013 on a temporary ban on registration of new fishing 
boats; 
 Ministerial Decree No. 706 of 2013 on new regulations on manufacturing, importing, 
and the use of traps (gargoor);  
 Ministerial Decree No. 500 of 2014 which is intended to bring fishing and trading of 
sharks into line with CITES11 (according to the FAO, the UAE had been the eighth 
largest exporter of shark fins12);  
 Ministerial Resolution No. 501 of 2015 setting out effort restrictions for lethrinus 
nebulosus  (spangled emperor) and siganus canaliculatus  (white spotted spinefoot); 
 Ministerial Resolution No. 656 of 2014 and Ministerial Decree No. 574 of 2015 
restricting the use of fishing nets; and 
 Ministerial Decree No. 580 of 2015, on th e prevention of fishing, selling, and 
marketing of fish below the specified minimum lengths. 
4.22.  In addition to the production of fish and other seafood products, the focus of aquaculture is 
to support the rebuilding of wild stocks and the long-term future of fish capture. In 1984 the 
Marine Environment Research Department (MERD) was established in Umm al-Quwain which, inter alia , produces fingerlings of local species for release into coastal waters under sponsored 
governmental policy.
13 
4.23.  The most recent notification on subsidies from the UAE was in February 2016, when it was 
stated that the "UAE does not grant or maintain within its territory any subsidy within the meaning of Article 1.1 and 2 of the Agreement on Subsidies and Countervailing Measures, or which operates 
directly or indirectly to increase exports from or reduce imports into its territory within the 
meaning of Article XVI:1 of the GATT 1994".
14 In 2010, it was reported that 581 registered 
fishermen were entitled to a fuel allowance of between Dh 500 and Dh 800 per month with a total 
cost of Dh 3.8 million per year from the Mohammed bin Rashid Al Maktoum Charity and 
Humanitarian Foundation and the Dubai Islamic Bank.15 The authorities noted that this subsidy 
was only provided for one year (2010). The Government of the UAE provides extension support to 
                                               
11 Ministerial Decree No. 500 of 2014 on regulating the Fishing and Trading of Sharks. Viewed at: 
http://faolex.fao.org/  [January 2016]. 
12 FAO (2014), Report of the Eighth Meeting of the RECO FI Working Group on Fisheries Management, 
Cairo, Egypt, 8-10 December 2014 , FIPI/R1108 (En), p. 47. 
13 FAO online information - National Aquaculture Sector Overview - United Arab Emirates . Viewed at: 
http://www.fao.org/fishery /countrysector/naso_uae/en  [January 2016]. 
14 WTO document G/SCM/N/284/ARE, 23 February 2016. 
15 Todorova, V. (2010), "Hundreds of struggling fishermen share Dh3.8m fuel subsidy ", The National , 7 
May. Viewed at: http://www.thenational.ae/news/uae-news/hundreds-of-struggling-fishermen-share-dh3-8m-
fuel-subsidy . WT/TPR/S/338 • United Arab Emirates 
 
- 66 - 
 
  traditional fishermen and a limited amount of subs idies in the form of boat engines, which does 
not exceed Dh 4.5 million annually, in order to preserve traditional fishing. 
4.2  Industry 4.24.  Industry (including mining, manufacturing, construction and power) contributed an 
estimated 56.5% of GDP in 2013, according to official estimates, and engaged 37.5% of the 
working population in 2008. 
4.25.  Since the UAE was formed in 1971, the dive rsification of the economy away from petroleum 
has been a clearly stated government policy. In dustrial development has been manned largely by 
immigrant labour. In addition to the growing hy drocarbon economy, the UAE is becoming one of 
the world's most important financial centres and a major trading centre in the Middle East. Investments in non-energy sectors, such as infr astructure and technology, along with a rapidly 
recovering real estate sector, continue to provide the UAE with insurance against oil price declines 
and global economic stagnation.  
4.2.1  Hydrocarbon sector 
4.26.  Petroleum production continues to be the most important industry in the UAE, with IMF 
balance of payments data indicating that ex ports of crude petroleum and related products 
contributed 32.5% of total export revenues in 2013. Despite the fact that the UAE’s economy is 
more diversified than before, the hydrocarbon sector still represents a core pillar of the economy 
accounting for around 38.3% of GDP. The UAE has the seventh-largest proven oil and natural gas 
reserves in the world, standing at 97.8 billion barrels, i.e. around 6.6 % of the world’s total proven reserves with most of the reserves located in Abu Dhabi (approximately 94% of the UAE's total). 
The other six emirates combined account for just 6% of the UAE's crude oil reserves, led by Dubai 
with approximately 4 billion barrels. 
4.27.  The UAE exported US$98.3 billion of crude oil in 2013, of which about 95% went to the 
Asian market, in particular Japan. Oil production is operated by Abu Dhabi National Oil Company 
(ADNOC), a state-owned company, working with a few international oil companies such as BP, 
Shell, Total, ExxonMobil and Occidental Petroleum under long-term concession agreements. Abu 
Dhabi’s 75-year-old onshore concessions expired in 2014 and three joint venture partners have 
been selected. 
4.28.  Beyond the large oil reserves, the UAE has also the seventh-biggest natural gas reserves in 
the world. Like oil, natural gas reserves are mostly located in Abu Dhabi (94%). It is furthermore 
the sixteenth-biggest natural gas producer in the world. Notwithstanding, rising domestic demand 
for subsidized energy and electricity over the past decade has caused the UAE to become a net importer of natural gas since 2008. While most of the UAE's natural gas is exported to Japan, and 
the rest to North America, other Asian economies, and Europe. Imports are mostly from Qatar via 
the Dolphin Gas Project’s export pipeline.  
4.2.1.1  Regulation of the oil sector 
4.29.  Each of the seven emirates is responsible for regulating the oil industry within its borders, 
creating a mix of production-sharing arrangements and service contracts. In Abu Dhabi, the Supreme Petroleum Council (SPC) sets Abu Dhabi's petroleum-related objectives and policies. Given Abu Dhabi's status as the central player in the UAE's oil industry, the SPC is the most 
important entity in the country when it comes to establishing oil policy. The Abu Dhabi National Oil 
Company (ADNOC) – which operates 17 subsidiaries throughout the oil, natural gas, and petrochemical sector – leads the day-to-day operations and implementation of SPC directives, and 
it is the key shareholder in nearly all upstream activity in Abu Dhabi. ADNOC's subsidiaries engage 
in oil and natural gas exploration, processing  and distribution, among other activities.  
4.30.  Abu Dhabi bases contract structures on long-term, production-sharing agreements (PSAs) 
between the state-run ADNOC and private actors (primarily large international oil companies) with 
the State holding a majority share in all projec ts. With the exceptions of Dubai and Sharjah – 
which have service contracts to manage their declining reserves – the smaller emirates all use PSAs similar to those found in Abu Dhabi. WT/TPR/S/338 • United Arab Emirates 
 
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  4.31.  The Dubai Supreme Council of Energy (DSC E) oversees Dubai's energy-policy development 
and coordination. The DSCE includes representatives from several key entities, including the Emirates National Oil Company (ENOC), the Dubai Petroleum Establishment (DPE), and the Dubai Nuclear Energy Committee (DNEC). The DSCE seeks to ensure that Dubai's economy has adequate 
and sustainable access to energy resources. The other emirates have small oil and natural gas 
sectors, but details on their structures are limited. 
4.2.1.2  Regulation of the gas sector 
4.32.  Natural gas production and regulation are th e responsibilities of the individual emirates and 
are often carried out under the same leadership as their oil sectors. ADNOC leads Abu Dhabi's natural gas sector through its subsidiaries. Another important company in Abu Dhabi's natural gas sector is Abu Dhabi Gas Liquefaction Limited (ADGAS), which controls the production and export of 
Abu Dhabi's liquefied natural gas (LNG) and liquefied petroleum gas (LPG). The third major 
participant in Abu Dhabi's natural gas industry is the Abu Dhabi Gas Development Company Limited (Al Hosn Gas), which is responsible for the development of the sour-gas reservoirs in the 
emirate's large Shah field. Al Hosn Gas is a joint venture between ADNOC and Occidental 
Petroleum Company. 
4.33.  Led by the ENOC group – a state-owned entity  made up of dozens of subsidiaries – Dubai's 
natural gas sector operates similarly to its counterpart in Abu Dhabi. The Dubai Supply Authority 
(Dusup) oversees engineering, construction, management, and operation of Dubai's natural gas handling and storage infrastructure. 
4.34.  To help meet the growing demand for natural gas, the UAE boosted imports from 
neighbouring Qatar via a pipeline, which runs from Qatar to Oman via the UAE and is one of the 
principal points of entry for the UAE's natural gas imports. In addition to the imports from Qatar, Dubai and Abu Dhabi both engage in LNG trading; the former as an importer and the latter as an 
exporter. The UAE is a member of the Gas Exporting Countries Forum (GECF). 
4.35.  The UAE continues to levy a corporate tax on companies in oil and gas activities which is 
regulated by the individual emirates. In Abu Dhabi, the tax is applied in accordance with the 
Abu Dhabi Income Tax Decree of 1965 and ranges between 55% and 85% depending on 
production. 
4.36.  The major heavy industries in the UAE ar e related to hydrocarbons, and activities are 
concentrated in the Jebel Ali Free Zone in the Emirate of Dubai and the Jebel Dhanna-Ruwais 
industrial zone, Abu Dhabi Industrial City, and Al Ain Industrial City in the Emirate of Abu Dhabi. 
The most important products are: liquefied petroleum gas, distillate fuel oils and jet fuels. There are two petroleum refineries in Abu Dhabi, and the emirate has "downstream" interests abroad. 
4.2.2  Non-hydrocarbon manufacturing sector 
4.37.  Although the UAE remains highly dependent on oil, which represents approximately 75% of 
total government revenues, the Government has embarked on a major economic diversification 
programme from oil to services and manufacturi ng. The UAE Vision 2021 focuses on transitioning 
to a knowledge-based economy, promoting i nnovation and research and development, 
strengthening the regulatory framework for ke y sectors and encouraging high value adding 
sectors. The aim being to sustain the drive toward economic diversification and development that 
is less reliant on oil. 
4.38.  The Government is expected to continue to pursue its diversification programme through 
large-scale investment in industrial sectors that are assessed to have a high potential for growth 
such as electrical machinery and apparatus, rubber and plastic products, fabricated metal 
products, chemicals and chemical products, and re newable energy. According to the authorities, a 
recent study by the Ministry of Economy showed th at machinery, plastics, and rubbers have a high 
potential for the chemicals sector.  
4.39.  Manufacturing contributed 14% of GDP in  2014, according to official estimates, and 
employed 427,000 people. The most important acti vities in the non-hydrocarbons manufacturing 
sector are: aluminium, steel, and chemicals. The UAE's other important industries are food, WT/TPR/S/338 • United Arab Emirates 
 
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  beverages and tobacco; mineral products; metal products; equipment; paper products; textiles 
and clothing; and wood products (Table 4.7). Investment in the industrial sector was Dh 120 million in 2012; Dh 121 million in 2013; Dh 125 million in 2014; and Dh 127 million in 2015. 
Table 4.7 Top five manufacturing sector s for investment and employment, 2013-14  
Investment  
Dh million Workforce 
'000 
Industry 2013 2014   2013 2014  
Food and beverage 
industry 39.0 39.2 Metallurgy and metallurgical products 90.1 91.1
 
Basic metal industries 31.3 31.3 Basic metal industries 77 78.1 
Metallurgy and 
metallurgical products 15.3 18.6 Food and beverage industry 39.1 40.2
 
Petroleum refining 
industry 8.5 8.6 Wood and wood 
products 30.7 31.9 
Chemicals and 
chemicals products 6.9 6.9 Plastics and rubber products 28.7 31.9
 
Other industries  20.0 20.3 Other industries 154.5 157.2  
Total 121.3 125.1  Total 420.4 427.8  
Source:  Information provided by the UAE authorities. 
4.40.  The UAE is recognized as an international trading hub and the largest re-export hub in the 
region. Dubai is the premier trading hub for precious metals accounting for around 25% of the 
global physical gold trade. The UAE is also the largest re-exporting destination for food products (meat processing, dairy products, vegetable oils, sugar refineries, bakeries, desserts, bottled 
water, etc.) within the GCC countries. 
4.41.  The UAE's manufacturing sector is governed by Federal Law No. 1 of 1979 organizing 
industrial affairs. The Law applies to all industrial projects in the UAE with the exception of those pertaining to oil and gas extraction and refining; mineral raw materials refining; and projects with 
a fixed capital of less than Dh 250,000 or employing less than ten people. Foreign ownership is 
limited to 49%, and senior management and at least 25% of employees must be UAE citizens. 
4.42.  The Ministry of Economy is the federal authority in charge of implementing the Law as well 
as formulating and implementing policies on manuf acturing. An industrial licence, issued by the 
M i n i s t r y  o f  E c o n o m y ,  i s  r e q u i r e d  t o  u n d e r t a k e  a n y  i n d u s t r i a l  a c t i v i t y  i n  t h e  U A E .  A l l  l i c e n s e d  industrial projects are granted a customs exemption on all materials included in the project, such 
as raw materials, machinery, etc. The emirates and the Council of Ministers may provide various 
incentives schemes; but the authorities stated that these provisions are not applied, except for the import duty exemption mentioned above. 
4.43.  The UAE's largest industrial conglomerate is the state-owned SENAAT - General Holding 
Corporation (SENAAT-GHC) which is an important party in implementing the industrial 
diversification policy of Abu Dhabi. The UAE general policy approach in manufacturing, as in other policy areas, has two levels: the federal level and the emirate level. As a consequence, each 
emirate holds a majority stake or is the sole shareholder in some key manufacturing companies. In 
Abu Dhabi, the Government has direct investment s in several enterprises including Mubadala, the 
International Petroleum Investment Company,  and SENAAT-GHC, and through ADNOC it has 
investments in others including Borouge, and Fertil. However, it relies on the Higher Corporation 
for Specialized Economic Zones (ZonesCorp) and Khalifa Industrial Zone (KIZAD) to develop and promote investment in manufacturing in the emirate. 
4.44.  In late 2010 the first phase of the Khalifa Industrial Zone Abu Dhabi (KIZAD) project was 
launched by the Abu Dhabi Ports Co. The venture aims to be one of the largest integrated 
industrial zones in the world and would offer full foreign ownership for investors. New industrial development projects approved by the Government  in January 2012 included the construction of 
two new industrial zones in Ruwais and Medinat Zayed, and major investment in automobile-
manufacturing. WT/TPR/S/338 • United Arab Emirates 
 
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  4.45.  In November 2013, the Abu Dhabi Government issued a local law establishing the Industrial 
Development Bureau (IDB) as a specialized entity to  develop and regulate the industrial sector in 
line with the emirate's industrial strategy. 
4.46.  Dubai is developing Dubai Industrial City, a new manufacturing zone that will focus on six 
industrial sectors: machinery and mechanical equipment; transport equipment and parts; base 
metals; chemicals; food and beverages; and mineral products. The Mubadala Development 
Company and the Investment Corporation of Dubai announced in June 2013 the creation of 
Emirates Global Aluminium – a jointly held, equal-ownership company to integrate the businesses 
of DUBAL and Emirates Aluminium. 
4.47.  MFN applied tariffs on manufactured goods, ex cept for agricultural food are generally at 5%, 
with a few exceptions, which are zero-rated. For example, imports of pharmaceutical products are 
duty free. Imports of all inputs are also duty  free. The average MFN tariff rate in 2011 for non-
agricultural products (WTO definition) was 4.6%. 
4.3  Services 
4.3.1  Financial services 
4.48.  The main components of the financial sector in the UAE are the banking sector, capital 
markets, and the insurance sector. The banking sector, which includes financial investment 
companies and money changers is regulated and supervised by the UAE Central Bank. The UAE 
has three stock exchanges: the Dubai Financial Ma rket (DFM), the Abu Dhabi Securities Exchange 
(ADX), and NASDAQ Dubai. The Emirates Securities and Commodities Authority (SCA) is in charge of regulating the DFM and the ADX, while the Dubai Financial Services Authority (DFSA) regulates 
NASDAQ Dubai. The insurance sector is supervised by the Insurance Authority, which is a part of 
the Ministry of Economy. The financial sector is of considerable importance to the UAE economy, 
contributing over 8% of GDP and employing over 40,000 people in 2015. 
4.49.  As part of 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 (Table 4.11).
16 
Table 4.8 UAE WTO financia l services commitments 
 Limitations on market access  
Mode Limitations on national treatment  
Mode 
 1 2 3 4  1 2 3 4 
7 FINANCIAL SERVICES 
7.B Banking and other 
financial services 
(excluding insurance) 
 (not including settlement and 
clearing services for 
financial assets) None
 None i) No limits for 
establishment of 
representative 
offices ii) Unbound new licences for 
operating bank 
branches iii) Unbound for expansion of activities of 
existing financial 
entities Unbound, except as 
indicated in the 
horizontal section None
 None None  Unbound, 
except as 
indicated in the 
horizontal section 
HORIZONTAL SECTION 
Mode 3 
Market access: Commercial presence for all sectors will be throug h either (i) a representative office or (ii) an incorporation as 
a company with maximum foreign equity participation of 49% subject to UAE law. 
National Treatment: (i) Acquisition of land and real estate is not permitted to foreigners or to companies in which foreign 
nationals have a shareholding. 
 (ii) Foreign nationals or companies with foreign shareholdings may be required to pay direct taxes on 
income derived from work or operations in the UAE, whereas local services suppliers or local UAE 
companies may not be required to pay similar taxes keeping in view the provisions of paragraph (d) of 
Article XIV. 
            (iii) Government subsidized services may only be extended to UAE nationals. 
                                               
16 WTO document GATS/SC/121, 2 April 1996. WT/TPR/S/338 • United Arab Emirates 
 
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   Limitations on market access  
Mode Limitations on national treatment  
Mode 
Mode 4 
Market access:  Unbound except for measures concerning entry and temporary stay of natural persons who fall into one of the 
following categories: 
(i)  Business visitors:  persons not based in the territory of the UAE and receiving no remuneration from a source within the 
UAE, who visit the UAE on behalf of a service supplier for business negotiations (and not for selling services directly to the 
public) or for doing preparatory work for establishing commercial presence in the UAE. Entry for persons in this category shall  
not be for more than ninety days. 
(ii) Intra-corporate transferees:  managers, executives and sp ecialists (as defined below) who have been in the employment 
of a juridical person of another Member outside the UAE, for a period of not less than one year prior to the date of applicatio n 
for entry into the UAE and are being transferred to a branch or affiliate in the UAE of the aforesaid juridical person. Entry w ill 
be subject to the following conditions: 
a)  The number of managers, executives and specialists shall be  limited to 50% of the total number of managers, executives 
and specialists of each service supplier. 
b)  Their entry shall be for a period of one year subject to renewal for two additional years with a maximum of three years. 
c)  Their stay in the UAE will be subject to UAE labour and immigration laws. 
Note: Mode 1: Cross-border supply. 
 Mode 2: Consumption abroad.  Mode 3: Commer cial presence. 
 Mode 4: Presence of natural persons. 
 Source: WTO, World Bank I-TIP online database. 
4.50.  Schedule. Cross-border supply of insurance services is not possible for companies located 
abroad. All assets and risks in the UAE must be insured domestically. Maximum foreign ownership 
of domestic insurance companies is set by law at 49%. Representative offices may not engage in 
business or act as agents. 
4.3.1.1  Banking 
4.3.1.1.1  Structure 
4.51.  At the end of 2015, the banking sector co nsisted of 23 national banks with 897 branches, 
26 foreign banks with 112 branches, 2 investment banks, 8 wholesale banks, 122 representative 
offices, 26 finance companies, 25 investment co mpanies and one investment/finance company. 
Additionally, there were 12 monetary and financial brokers and 141 companies undertaking money changing and transfer business. 
4.52.  The 2008 financial crisis had an adverse impact on the UAE economy, with the financial 
sector being hit particularly hard. The banking sector's recovery and consolidation started in 2009 
and continued during the period under review. Total gross assets rose from Dh 1,735 billion in September 2011 to over Dh 2,474 billion at the en d of 2015, while bank deposits increased from 
Dh 1,067 billion to Dh 1,472 billion over the same period. 
4.53.  Furthermore, during the review period, gross lending also rose to Dh 1,485 billion in 2015, 
while non-performing loans (NPL) as a proportion of total loans declined to 6.2% from a high of 
8.4% in December 2013. Provisioning for NPLs was 110% in December 2015 compared with 92% 
in December 2013. Aggregate net profit of the ba nking sector was around Dh 36 billion in 2015. 
Furthermore, net return on assets (ROA) and net return on equity (ROE) have gradually increased 
since 2012, reaching 1.5% and 11.8% respectively as of the end of 2015. The increase can be 
attributed to the economic recovery in the UAE which resulted in higher profits, lower NPLs, and 
the improvement in asset utilization and capital allocation. Banks in the UAE continue to be well capitalized, with the capital adequacy ratio being over 18% and Tier 1 capital ratio being in excess 
of 16% in 2015; both ratios are considerably high er than the regulatory requirement of 12% and 
8% respectively. 
4.54.  The Islamic financial services industry (Box 4.1) in the UAE consists of 44 institutions, these 
include: full-fledged Islamic banks, Islamic windows within conventional banks, finance companies 
and investment companies. There were eight Islamic banks in the UAE as at the end of 2015. Subject to the Central Bank’s approval, conventional institutions are permitted to operate Islamic windows. There were also 13 Islamic finance companies and one Islamic investment company. 
Fully-fledged Islamic banks represented more th an three quarters of total Islamic banking 
financing and deposits. This was followed by Is lamic windows within conventional banks and 
Islamic finance companies. WT/TPR/S/338 • United Arab Emirates 
 
- 71 - 
 
  Box 4.1 Islamic banking 
Islamic banking entails a financial system that is cons istent with Shariah (Islamic Law). Under Shariah, the 
collection and payment of interest are prohibited, as are trading in financial risk (perceived as a form of 
gambling) and investment in businesses considered haram (forbidden) such as those involving alcohol and 
pork. 
However, Islamic banking does allow gains on capital, an d banking activity is guided by four basic principles: 
• risk-sharing: the terms of financial transactions n eed to reflect a symmetrica l risk/return distribution 
each participant to the transaction may face;  
• materiality: a financial transaction needs to have a "material finality", i.e. it must be directly or 
indirectly linked to a real economic transaction;  
• no exploitation: a financial transaction should not lead to the exploitation of any party to the 
transaction; and  
• no financing of haram activities.  
Islamic financial instruments take the form of contracts between providers and users of funds to manage risk. 
In order to ensure compliance with Shariah law, Islamic banks, Islamic finance companies and banking 
institutions that offer Islamic financial products and services are required to establish Shariah advisory 
committees/consultants to advise them and to ensure that the operations and activities of the bank comply 
with Shariah principles. 
Taking these principles into account, the main Shariah-compliant financial instruments prevalent today are: 
• The Mudarabah (profit sharing) is a contract, wi th one party providing 100% of the capital and the 
 other party providing its specialized knowledge to invest the capital and manage the investment 
 project. Profits generated are shared between the part ies according to a pre-agreed ratio. If there is a 
 loss, the first partner "rab b-ul-mal" will lose his capital, and the other party "mudarib" will lose the time 
 and effort invested in the project. 
• Muraba ḥah refers to the sale of goods (such as real  estate, commodities, or a vehicle) where the 
 purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale 
 agreement. Murabahah has become "the most prev alent" Islamic financing  mechanism. Murabahah 
 works as finance when the lender/buyer pays the bank/seller for the good over a period of time, 
 compensating the bank/seller for the time value of it s money in the form of "profit" not interest.  With 
 a fixed rate of profit determined by the profit margin for the purchase  of a real asset, this is a fixed-
 income loan. The bank is not compensated for the ti me value of money outside of the contracted term 
 (i.e. the bank cannot charge additional profit on late payments); however, the asset remains as a 
 mortgage with the bank until the default is settled. 
• Istisna (manufacturing finance) is a process where pa yments are made in stages to facilitate the work 
 of manufacturing/processing/construction. An inst alment of Istisna, for example, may enable a 
 construction company to finance construction of sect ions of a  building or help manufacturers pay for 
 an order of raw materials.  
• Ijarah means lease, rent or wage. Generally, the ijarah concept refers to selling the benefit of use or 
 service for a fixed price or wage. Under this concep t, the bank makes available to the customer the use 
 of service of assets/equipment such  as plant, office automation, moto r vehicles for a fixed period  and 
 price. 
• Musharakah (joint venture) is a re lationship between two or more parties that contribute  capital to a 
 business and divide the net prof it and loss pro rata. This is often used ininvestment projects, 
 letters of credit, and the purchase or real estate or property. In the case of re al estate or property, the 
 bank assesses an impute d rent and will share it as agreed in  advance. All providers of capital are 
 entitled to participate in management, but not necessa rily required to do so. The profit is distributed 
 among the partners in pre-agreed  ratios, while the lo ss is borne by each partner strictly in proportion to 
 respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of 
 loans). 
• Wakalah is agency contract where the customer (pri ncipal) appoints the bank as an agent (Wakil) to 
carry out business on their behalf. 
• Sukuk (Islamic bonds) – 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 using 
most typically ijarah or wakalah contracts. According to data published by the Islamic Financial Services 
Board, total outstanding sukuk as of the end of 2014 was US$294 billion. 
As of 2014, Islamic banking assets were in excess of US$1.5 trillion, which is more than 1% of global banking 
assets. Furthermore, Islamic banking has been growing much faster than conventional banking, although from 
a much lower base. Between 2009 and 2013, Islamic bankin g assets grew at an average annual rate of 18% 
and were expected to grow at an average annual rate of 20% between 2014 and 2020. 
Source: UAE authorities, Islamic Financial Services Board, and WTO Secretariat. WT/TPR/S/338 • United Arab Emirates 
 
- 72 - 
 
  4.55.  The review period saw significant growth  in the Islamic banking segment. Islamic bank 
assets have grown at a compound annual growth rate (CAGR) of 10.8% (conventional banks: 8.4%) between 2009 and 2014, and reached Dh 464 billion as at the end of December 2015, which is nearly 19% of the total assets of the banking sector. Financing by Islamic entities 
increased by nearly 16% reaching Dh 266 billion, th ereby increasing their share of total bank loans 
and advances from 20% at the end of 2013 to 22.2% at the end of 2014. 
4.56.  Overall, the Islamic banking sector is well capitalized. However, the capital adequacy ratio 
(CAR) of full-fledged Islamic banks declined to  15.7% at the end of December 2015 (from 17.6% 
at end-December 2013) and the Tier 1 capital ratio declined to 14.9% (from 16.7% at end-
December 2013). This is due to the continuous absorption of write-offs and non-performing financing (loans) accumulated in the balance sheets after the financial crisis year 2008-09. 
However, regulatory capital held by Islamic banks still exceeded the minimum regulatory 
requirements. 
4.57.  Profitability weakened after a major correction in the property market in 2008, but 
registered strong growth from 2010 onwards. The return on assets for Islamic banks increased to 
1.5% as at end-December 2015, up from 0.7% in December 2009. Similarly, the return on equity increased from 5.2% as at end-December 2009 to  13.6% as at end-December 2015. This robust 
growth in financing and investment activity in real estate in 2014 has helped Islamic banks 
generate considerable growth and profitability. 
4.3.1.1.2  Regulation 4.58.  The main legislation governing the banking sector continues to be the Union Law No. 10 of 
1980 concerning the Central Bank, the Monetary System and Organization of Banking. Under the 
provisions of the Law, there are six principal categories of banking institutions in the UAE: commercial banks, investment banks, wholesale banks, financial institutions, financial and 
monetary intermediaries, and representative offices, each of which must be licensed by the Central 
Bank. 
4.59.  Foreign banks operating in the UAE are also regulated by the Central Bank and must open 
branches in the UAE. They are required to obtain a licence from the Central Bank and furthermore 
they are subject to a maximum of eight branches in  the UAE. Subsidiaries of foreign banks are not 
allowed, but foreign banks are allowed to open representative offices. Foreign banks are treated the same as domestic banks with respect to paid-up capital requirements. All commercial banks, 
including branches of foreign banks, are requ ired to have a minimum paid-up capital of 
Dh 40 million, or 10% of risk-weighted assets in th e UAE, whichever is greater. However, national 
treatment is not applied as regards the taxation of profits. Foreign banks are subject to a 20% tax 
on profits, which is not applied to national banks. 
4.60.  Financial investment companies are regulated by Central Bank Resolution No. 164/8/94, of 
18 April 1995. This resolution defines financial investment companies as those conducting one or 
more of the following businesses: (a) opening investment accounts and managing portfolios on 
behalf of others, whether individuals or companies; (b) preparing feasibility studies for projects and marketing allotments and stocks of shareholdi ng companies; (c) establishing and/or managing 
investment trust funds; (d) establishing and/or managing other investment funds and acting as 
trustee of funds entrusted to it by a trust to manage on behalf of a beneficiary; or (e) underwriting 
companies' capital and participating in syndicated loans. A financial investment company must be a juridical person with a minimum capital of Dh 25 million, subject to increase according to the 
business the company intends to undertake. The resolution also requires national shareholding of 
at least 51% of the paid-up capital.
17 
4.61.  In 2010, the Central Bank implemented a series of regulatory measures to help mitigate 
future financial crises. They include, inter alia : an increase of the minimum capital-adequacy ratio 
to 12%; a moratorium on new licences for commercial banks; a limit on the number of branches (only eight) permitted to licensed foreign banks; new provisioning rules requiring banks to classify loans as being in default, and make provisions a ccordingly, after 90 days of delinquency, instead 
of the previous 6 months (introduced in November 2010); a limit on personal loans to 20 times the 
                                               
17 Central Bank online information. Viewed at: http://www.centralbank.ae/en/index.php?option=com 
_content&view=article&id=134&Itemid=99 . WT/TPR/S/338 • United Arab Emirates 
 
- 73 - 
 
  monthly salary or income of a borrower, with a maximum repayment period of four years; and 
restrictions on processing fees for loans and debit and credit cards.  
4.62.  Islamic banks are governed by Federal La w No. 6 of 1985 regarding Islamic Banks, Financial 
Institutions and Investment Companies and regula ted by the Central Bank. The capital adequacy 
ratio requirements for Islamic banks are the same as for ordinary banks. Islamic banks must take 
the form of joint-stock companies and may engage in any banking operation. The UAE has eight Islamic banks offering Shariah-compliant products and services such as: sukuks (Islamic bonds) 
and ijarah transactions, which are used in property purchasing deals. 
4.63.  Foreign banks pay a 20% local emirate tax on profits, governed by specific legislation in 
each emirate. There are no restrictions on the presence of foreign senior staff in foreign banks. A minimum of 10% of the total staff employed by  all banks in the UAE must be UAE nationals 
(excluding auxiliary staff) as per Central Bank regulations. Additionally, in accordance with Council 
of Ministers Decree No. 10 of 1998, all banks are to  increase the number of UAE-national staff by 
4% annually, although reportedly this has not been achieved due to lack of domestic workforce.  
4.64.  During the period under review, the Centra l Bank carried out a full self-analysis of the 
regulatory and supervisory oversight framework in pl ace for banks. As a result, a formal work plan 
has been established to address any gaps identified. The main issues being addressed are: 
 Liquidity: with a view to enhancing the prudential liquidity framework for banks operating in 
the UAE, the Central Bank issued new liquidity regulations (Notice No. 147/2015) in the second quarter of 2015. Under these regulations all banks operating in the UAE are required 
to hold a minimum level of liquid assets. The regulations take account of the direction of the 
reforms under the Basel III liquidity framework set out by the Basel Committee on Banking 
Supervision and provide a path for banks approv ed by the Central Bank to progress to the 
Basel III standards of liquidity measurement. 
 Capital: the Central Bank is revising the regulatory capital requirements for banks operating 
in the UAE. The new capital regime will be aligned with the Basel III capital framework and 
will include requirements for enhanced capital in terms of quality and quantity, the 
introduction of capital buffers and the application of a new leverage ratio. The definition of 
capital will also change with an increased emphasis on paid-up capital, retained earnings and disclosed reserves. In accordance with Base l III, the timeframe for full implementation 
of the new capital regime is late 2018. The Central Bank is in the process of preparing a 
detailed work plan and in 2016 will begin the process of engaging with banks towards 
implementing the new capital rules.  
 Corporate governance, risk management and audit: the Central Bank is in the process of 
reviewing and upgrading its regulations on corp orate governance, risk management, internal 
control, and financial reporting/external audit. The objective is to ensure that the financial institutions’ approach to governance and the control and management of risk is in line with 
leading international practice. It is intended that the roll-out of these new regulations will 
commence in 2016. 
4.3.1.2  Insurance 4.65.  The insurance sector in the UAE comprise s 34 national insurance companies and 26 foreign 
insurance companies. Eleven national companies and two foreign companies offer complete 
insurance services (life, property, liability and op eration of fund formation). There are 20 national 
firms and 17 foreign firms that offer property and liability insurance only; two national companies 
and eight foreign companies offer life assurance and operation of fund formation services and 
there is only one national firm providing export credit insurance. Furthermore, there are 11 firms 
that offer "cooperative" (takaful) insurance services. 
4.66.  Additionally, the sector also includes insurance agents, insurance brokers, insurance 
consultants, loss adjusters and actuaries. 
4.67.  Underwritten premiums in 2014 amounted to Dh 33.5 billion, which was an increase of 
13.5% over the previous year. This translates into a relatively low penetration rate of WT/TPR/S/338 • United Arab Emirates 
 
- 74 - 
 
  approximately 2.3% of GDP. Total underwritten premiums of property and liability insurance 
increased from Dh 22.5 billion in 2013 to Dh 24.9 billion in 2014, of which the share of national 
companies was 75.1%. Total underwritten premiums of life assurance and operations of fund formation amounted to Dh 8.6 billion in 2014, of which foreign companies were responsible for 
81.4%. 
4.3.1.2.1  Regulation 4.68.  The insurance industry is governed by th e Federal Insurance Law (No. 6 of 2007). The law 
is administered by the Insurance Authority, which is an autonomous and independent entity 
chaired by the Minister of Economy. The Insuranc e Authority is also the regulator of the sector. 
Responsibilities of the Insurance Authority include inter alia : formulating and issuing regulations 
for the insurance industry; approving and granti ng licences for insurance companies and brokers 
as well as other stakeholders; determining policies and procedures related to solvency margins, 
accounting policies, investment rules and reinsurance standards; and implementing a code of conduct for the insurance industry. 
4.69.  Domestic and foreign insurance companies wishing to establish in an emirate must apply to 
the Insurance Authority for licensing. Conditions for the granting of licences are set out in Articles 19 and 20 of the Insurance Law No. 6 of 2007. Th ey include: economic needs criteria, such as 
domestic demand for the classes of insurance offe red by the applicant; whether the applicant will 
introduce new classes of insurance coverage; an d the appointment of a minimum number of UAE 
nationals as staff.
18 Eligible foreign insurance companies that meet licensing conditions may open 
a branch in the UAE or appoint a local insurance agent. 
4.70.  National companies and foreign branches must have minimum fully paid-up capital of 
Dh 100 million, and must deposit, with a local bank, a guarantee of Dh 6 million for non-life insurance and Dh 4 million for life insurance. Combined life and non-life, or non-insurance-related 
operations are not allowed. According to the Insurance Law, as of 2016, all insurance companies 
(new and existing) will be required to carry out life and non-life insurance separately. Furthermore, an application to open a foreign bran ch must specify the expected new product to be 
introduced in the local market. The general manager, authorized manager, and senior employees 
of an insurance company must have suitable qualifications and experience in the insurance business. The manager of a foreign branch must be a resident of the UAE. An application to open a foreign branch must specify the expected overa ll volume of retention within the UAE market. 
4.71.  No taxes or stamp duty are levied on insurance companies at federal or emirate level. 
4.72.  The UAE made no specific commitments in its GATS Schedule regarding insurance services. 
The cross-border supply of insurance services is not permitted for companies located abroad. All 
assets and risks in the UAE must be insured domestically by a company registered in the UAE; this 
may be a domestic company, a local branch of a foreign company or an agency. However, UAE-based companies may insure risks located abroad. Foreign participation in the capital of a domestic 
firm is limited to 25% of the capital. 
4.73.  Representative offices may not engage in insurance business or act as insurance agents. 
This does not apply to reinsurance services, for which commercial presence is not required: UAE insurance companies may reinsure their risks at the international reinsurance markets. Insurance 
agents must be UAE natural persons or UAE legal entities. 
4.74.  With a view to protecting the rights of policy holders and shareholders, the Insurance 
Authority issued Decision No. 25 of 2014 Pertinent to Financial Regulations for Traditional 
Insurance Companies
19 and Decision No. 26 of 2014 Pertinent to Financial Regulations for Takaful 
                                               
18 To be granted a licence, the fo reign company must commit to engage at least 15% UAE nationals. 
The authorities stated that this would be converted to a points system in 2017. 
19 UAE Insurance Authority online information. Viewed at: 
http://www.ia.gov.ae/en/Documents/Financial%20R egulations%20for%20Insurance%20 Companies.pdf . WT/TPR/S/338 • United Arab Emirates 
 
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  Insurance Companies20, which regulate the financial, technical, investment, and accounting 
operations of Traditional and Takaful insurers operating in the UAE. 
4.75.  In addition to protecting the rights of policyholders and shareholders of insurance 
companies, these regulations also aim at protecti ng insurance companies from potential risks they 
may encounter through proactively ensuring the so lvency of insurance companies and the integrity 
of their financial procedures. They are also intend ed to enhance the technical principles and rules 
needed to promote the establishment of modern and advanced regulatory principles for the UAE 
insurance market as per the best international practices. As such, particular attention has been 
paid to the general requirements and rules for investment, limits on certain investments and requirements pertaining to the solvency  margin and the minimum guarantee fund.
21 
4.3.1.3  Capital markets 
4.3.1.3.1  Structure 
4.76.  The UAE has three stock exchanges: the Dubai Financial Market (DFM), the Abu Dhabi 
Securities Exchange (ADX), and NASDAQ Dubai. N ASDAQ Dubai is part of the Dubai International 
Financial Centre (DIFC) free zone; whereas the DFM and ADX are both "onshore" stock exchanges. 
In addition to these equity and bond exchange s, the UAE has the Dubai Gold and Commodities 
Exchange (DCGX), on which financial derivatives are traded, and the Dubai Mercantile Exchange 
(DME). 
4.77.  The Dubai Financial Market (DFM) was established as an independent public institution by 
Ministry of Economy Resolution No. 14 of 2000. It operates as a secondary market for the trading 
of securities issued by public joint-stock companies, bonds issued by the Federal Government or 
any of the local governments and public institutions in the country, and units of investment funds 
and any other financial instruments, local or foreign, that are accepted by the Market. 
4.78.  The Abu Dhabi Securities Exchange (ADX) was established on 15 November 2000 by 
(Abu Dhabi) Law No. 3 of 2000. It trades mainly in shares of UAE companies. There are trading 
locations in Abu Dhabi, Al Ain, Fujairah, Sharjah, and Ras al-Khaimah. 
4.79.  Both the ADX and DFM are eligible for trad ing transactions of listed companies’ shares. 
Therefore, the Securities and Commodities Authority has linked both markets to create the 
Emirates Securities Market (ESM). Furthermore, the SCA issues on a daily basis the ESM index, which is considered to be the official index of the UAE capital market. 
4.80.  In the aftermath of the global financial cr isis of 2008, the ESM fell sharply but since then the 
market has recovered and the recovery continued during the review period. The ESM index rose 
from 2,561.21 points in 2012 to 4,580.13 points  in 2014. Over the same period, market 
capitalization nearly doubled from Dh 379 billion  to Dh 728 billion, traded volume rose from 
approximately 57 billion shares to nearly 218 billion shares, traded value rose from nearly 
Dh 71 billion to Dh 526 billion, and the number of  listed companies increased from 123 to 125. 
Additionally, between 2012 and 2014 net foreign invest ment in the market rose from Dh 1.5 billion 
to Dh 8.5 billion and foreign investors accounted for over 40% of the trading value in 2014. Banks 
accounted for more than half the market capitalization in 2014 followed by real estate and telecommunications. 
4.81.  In 2013, the UAE markets were upgraded to “emerging market” status following the Annual 
Market Classification Review of Morgan Stanley Capital International (MSCI). The authorities stated 
                                               
20 UAE Insurance Authority online information. Viewed at: 
http://www.ia.gov.ae/en/Documents/Fina ncial%20Regulations%20for%20Takaful%20 
Insurance%20Companies.pdf . 
21 The requirements of minimum subscribed and paid-u p capital are set at Dh 100 million for insurance 
companies and Dh 250 million for reinsurance companies. The Minimum Guarantee Fund is set at no less than 
one-third of the Solvency Capital Requ irement. The Minimum Guarantee Fund is calculated on the basis of the 
minimum amount required to be main tained to cover any class of insura nce underwritten by the company, 
which includes a minimum limit and a percentage of the net earned premiums or an equivalent percentage, whichever is higher as determin ed by the Insurance Authority. WT/TPR/S/338 • United Arab Emirates 
 
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  that this upgrade came as a result of international institutions’ recognition of the UAE market’s 
developed infrastructure, which meets international standards. 
4.82.  NASDAQ Dubai is located in the Dubai International Financial Centre (DIFC), a financial free 
zone. Financial institutions established in the DIFC benefit from: zero tax rate on income and 
profits; 100% foreign ownership; no restrictions on foreign exchange or capital/profit repatriation; 
operational support and business continuity facilities. The DIFC has its own court system, as well as an independent authority for arbitration to which disputes may be brought. Corporate capital in 
the DIFC is designated in U.S. dollars rather than UAE dirhams. Institutions wishing to offer 
regulated financial services must obtain approval from the Dubai Financial Services Authority (DFSA), the Centre's independent regulatory body. 
4.83.  NASDAQ Dubai lists regional and internatio nal shares, GDRS, sukuk, bonds, funds, and real 
estate investment trusts (REITs). Through the exchange, regional issuers can access regional and 
international investment. International issuers can access investment from the region through a primary or dual listing. 
4.84.  During 2014, the FTSE NASDAQ DUBAI UAE 20 Index rose 11% to reach 3,766 points at the 
end of the year. Furthermore, in 2014 the value of equities traded was nearly US$1.5 billion 
compared with US$633 million in 2013, while the volume of shares traded was 280 million, 
considerably higher than the 199 million in 2013. However, in 2015, the Index declined by 19%. 
4.85.  Additionally, in 2015 14 sukuks (Islamic bonds) with a nominal value of US$13.4 billion 
were listed on NASDAQ Dubai. At the end of the year the exchange’s nominal sukuk value stood at 
US$34.06 billion, making NASDAQ Dubai the largest sukuk listing venue in the world. 
4.3.1.3.2  Regulation 
4.86.  The Emirates Securities and Commodities Authority (SCA) is in charge of regulating the DFM 
and the ADX. The SCA is an independent body, chai red by the Minister of Economy, under Federal 
Law No. 4 of 2000. It is responsible for regulating the licensing, management, membership, and 
supervision of financial markets and brokerage firms. The SCA is the only agency legally authorized to approve the listing of securities. Th e SCA regulations allow foreign firms to list their 
securities in these markets after having satisfied certain requirements. 
4.87.  A broker seeking to operate on the DFM and ADX exchanges must: 
 be a legal person incorporated within the State in accordance with the Commercial 
Companies Law or a branch of a foreign company, provided that its parent company 
conducts the same activity and is subject to the supervision of a regulatory authority 
which carries out functions similar to those of the Authority;  
 have a paid capital of not less than Dh 3 million for a brokerage company (trading 
member) and Dh 10 million for a brokerage company (trading and clearing member); 
 provide a guarantee of not less than Dh 1 million for a brokerage company (trading 
member) and Dh 50 million for a brokerage company (trading and clearing member). 
4.88.  In 2014, the UAE second market was launched following the listing of shares of some 
private joint-stock companies. In 2014, the SCA made every effort to implement all of the initiatives and the first year activities of its new strategic plan (2014-2016) and gave special priority to the implementation and development of its electronic and smart services. Over the last 
few years, and in cooperation with the markets, the SCA has introduced several regulations to 
strengthen the practices in the capital markets to  cope with the international standards. These 
include regulations for “The Market Maker”, “Len ding and Borrowing of Securities”, “The Short 
Selling of Securities”, “Liquidity  Provider”, “Cash Compensation of the Last Buyer for Settlement”, 
and “The Margin Trading”. 
4.89.  Additionally, the legislative system of the financial markets was reinforced by the issuance 
of 21 new regulations and decisions (3 regulations  in 2013, 11 regulations  in  2014, and 7 
regulations in 2015), paving the way for the introd uction of new investment tools to financial WT/TPR/S/338 • United Arab Emirates 
 
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  markets, such as application of extensible business reporting language (XBRL), investment 
management, accreditation of public companies an d investment funds auditors, covered warrants, 
depository receipts, bonds, sukuk, debt securities, as well as the listing and trading of the shares 
of private joint-stock companies. This adds depth to the markets and diversifies the financial 
options open to investors. 
4.90.  NASDAQ Dubai has been granted a licence by the DFSA, which is the regulator of all 
financial and ancillary services conducted through the DIFC, to operate as an Authorized Market 
Institution (AMI) (under the DIFC Regulatory Law). The exchange is located in the Dubai 
International Financial Centre (DIFC), which has an independent commercial legal system based on English law. 
4.91.  The DFSA’s regulatory mandate covers a sset management, banking and credit services, 
securities, collective investment funds, custody and trust services, commodities futures trading, 
Islamic finance, insurance, an international equities exchange, and an international commodities derivatives exchange. The DFSA is also responsible for the regulation and supervision of persons in 
the DIFC in relation to anti-money laundering, counter-terrorist financing, and sanctions 
compliance. 
4.92.  In fulfilling its mandate as the sole indepe ndent financial services regulator for the DIFC, the 
DFSA performs a number of functions. These include policy and rulemaking, authorization, 
recognition, supervision, enforcement, and national and international cooperation. The DFSA is also the regulator for anti-money laundering across the DIFC. In addition, the DFSA has been delegated authority under the Companies Law 2009 to undertake enforcement action under that 
Law. The rules made by the DFSA under the Regula tory Law 2004 for the purposes of the Markets 
Law of 2012, the Law Regulating Islamic Financial Business of 2004, the Trust Law of 2005, the Collective Investment Law of 2010, and the Investment Trust Law of 2006 cover the full range of 
financial and related activities undertaken in or from the DIFC. Generally, any legislation the DFSA 
proposes to make, or to submit to the President of the DIFC for enactment by the Ruler of Dubai, is made available to the public for consultation and the DFSA undertakes consultation with the 
industry as part of the policy development pr ocess. The DFSA also regulates exchanges and 
clearing houses in the DIFC and maintains the Official List of Securities and is also responsible for the approval of all issuer prospectuses.  
4.93.  Additionally, NASDAQ Dubai itself regulates a number of activities relating to its market 
through its Admission and Disclosure Standards and Business Rules. 
4.3.2  Construction 4.3.2.1  Overview 
4.94.  Construction is important to the UAE econ omy, representing 9% of GDP and 33% of total 
employment in 2014. The majority of construction workers are not citizens of the UAE. 
Table 4.9 Construction in the UAE, 2010-14 
  2010  2011  2012  2013 2014  
Total GDP Dh million 1,050,516 1,279,962 1,371,421 1,421,963 1,466,985 
  of which       
    Construction Dh million 122,352 122,204 120,445 124,569 132,109 
Total employment '000 3,907.3 3,906.6 4,044.4 4,051.2 4,444.5 
  o f  w h i c h        
    Construction       
    Citizens '000  2.3 2.5 2.6 2.3 2.8 
    Migrants '000 1,599.1 1,532.0 1,504.0 1,379.8 1,478.3 
Source: Federal Competitiveness and Statistics Authority online information. Viewed at: 
 http://www.fcsa.gov.ae/EnglishHome/tabid/96/Default.aspx  [January 2016]. 
4.95.  As noted in the last report, the UAE is  home to a number of well-known construction 
projects, including the Burj Khalifa, the tallest building in the world by EMAAR, the region's largest developer; Palm Jumeirah, the world's largest man-made island by Nakheel; Masdar, the world's 
first carbon-free city; the Dubai Mall, the world's largest shopping mall; and Ski Dubai, the world's WT/TPR/S/338 • United Arab Emirates 
 
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  first indoor ski resort. In addition, major residential projects have been built such as Jumeirah 
Lake Towers by Nakheel, Downtown Dubai by EMAAR,  Al Raha Gardens by Aldar properties in Abu 
Dhabi, and Al Hamra Village in Ras al-Khaimah.22 
4.96.  To some extent, the continuing growth in th e construction sector has been driven by public 
investment. For example, in Abu Dhabi, construction in Saadiyat Island’s cultural district to meet 
the deadline announced for the opening of the Louvre Abu Dhabi Museum in 2015, the Zayed National Museum in 2016, and the Guggenheim Abu Dhabi Museum in 2017. In Dubai, 
infrastructure projects implemented in preparat ion for Expo 2020 are estimated to be about Dh 30 
billion.
23 
4.97.  In April 2014, it was estimated that the total value of construction projects was about 
US$727 billion with about one-third for mixed use, one-third for residential use, and the rest 
divided among commercial, hospitality and leisure, healthcare, cultural, and educational use.24 
Table 4.10 Selected large construction projec ts under construction in the UAE in 2015 
Source Project Main contractor Client Approximate 
value 
US$ million 
a Barakah Nuclear Power 
Plant 1-4 Korea Electric Power 
Corporation Emirates Nuclear Energy 
Company 20,000 
b Upper Zakum Full Field Petrofac Zakum Development 
Co. 3,700 
c Ruwais Refinery 
Expansion Project:  Abu Dhabi Oil Refining 
Co. (Takreer) 9,600 
 Package 1 SK Engineering and 
Construction   
 Package 2 GS Engineering and 
Construction   
 Package 3 Samsung Engineering   
 Package 4 Daewoo Engineering 
and Construction   
d Abu Dhabi Airport: 
Midfield Terminal Complex Arabtec, TAV, CCC Abu Dhabi Airport 
Company 2,960 
e Dubai Metro  Dubai Roads and 
Transport Authority 14,352 
e Emirates Roads Master 
Plan  Dubai Roads and 
Transport Authority 12,000 
e Etihad Railway Network  Etihad Rail 11,000 
e Airport Expansion Project  Dubai Airport 
Authority 7,800 
e Abu Dhabi Metro  Musanada 7,000 
Source: a World Nuclear Association online information. Viewed at: 
 http://www.world-nuclear.org/info/Country-Pr ofiles/Countries-T-Z/United-Arab-Emirates/ . 
 b Petrofac online information. Viewed at: 
 http://www.petrofac.com/regions/middle-east/projects/abu-dhabi-projects-overview.aspx . 
 c Hydrocarbons Technology on line information. Viewed at: 
 http://www.hydrocarbons-technology.com /projects/ruwais-refinery-expansion/ . 
 d Abu Dhabi Airport online information. Viewed at: 
 http://www.abudhabiairport.ae/en glish/airport-information/abou t-abu-dhabi-airport/midfield-
terminal-complex-development.aspx . 
 e Alpen Capital Investment Banking (2015) , GCC Construction Industry , 23 June. Viewed at: 
http://www.alpencapital.com/downloads/G CC_Construction_Industry_Report_June_2015.pdf . 
                                               
22 WTO document WT/TPR/S/262/Rev.1, 3 May 2012, para. 172. 
23 Central Bank of the UAE (2015),  Annual Report 2014 , Abu Dhabi, p. 19. 
24 Deloitte (2015), Deloitte GCC Powers of Construction 2014: Construction sector overview . WT/TPR/S/338 • United Arab Emirates 
 
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  4.98.  Several large construction companies are based in the UAE and operate throughout the Gulf 
region: 
 Arabtec Holding PJSC, which has several subsidiaries including Arabtec Construction 
LLC, Arabtec Precast LLC, and Target Engineering Construction Company WII. In 2014, 
the group had revenues of Dh 8,293 million, operating profits before tax of 
Dh 126 million, and assets of Dh 14,345 million; 
 Al Jaber LEGT Engineering and Contracting LLC (ALEC), which is a family-owned 
industrial group; and 
 Emaar Properties PJSC which is 29.22% owned by the Government of Dubai, had in 
2014 revenues of Dh 9,893 million, a net operating profit of Dh 3,350 million and total assets of Dh 74,179 million.
25 
4.3.2.2  WTO commitments 
4.99.  The GATS commitments for the UAE are listed in Table 4.11. These include reservations on 
market access for commercial presence which requires a representative office or incorporation 
under UAE law with a maximum foreign equity participation of 49%; and national treatment 
reservations preventing foreign nationals from acquiring real estate, allowing for differential taxation for foreign nationals or companies with foreign shareholdings, and including the possibility 
that subsidized services be extended to UAE nationals only. 
Table 4.11 UAE WTO construction-r elated services commitments 
 Limitations on market access  
Mode Limitations on national treatment  
Mode 
 1 2 3  4 1 2 3 4 
1 BUSINESS SERVICES 
1.D Architectural services None None None  Unbound, except as 
indicated in the horizontal section None
 None None, 
except as  indicated in 
the 
horizontal section Unbound, except as 
indicated in the horizontal section 
1.E Engineering services 
1.G Urban planning and 
 landscape architectural 
 services 
3 CONSTRUCTION AND RELATED ENGINEERING SERVICES  
3.A General construction   work for buildings None None None
 Unbound, except as 
indicated in the 
horizontal section None None None, 
except as 
indicated in 
the horizontal section Unbound, except as 
indicated in the 
horizontal section 
3.B General construction 
work for civil engineering  
3.C Installation and  
  assembly work 
3.D Building completion 
  and finishing work 
3.E Othe r 
HORIZONTAL SECTION 
Mode 3 
Market access: Commercial presence for all sectors will be throug h either (i) a representative office or (ii) an incorporation as a 
company with maximum foreign equity participation of 49% subject to UAE law. 
National treatment: (i) Acquisition of land and real estate is not permitted to foreigners or to companies in which foreign 
nationals have a shareholding. 
 (ii) Foreign nationals or companies with foreign shareholdings may be required to pay direct taxes on 
income derived from work or operations in the UAE, whereas local services suppliers or local UAE 
companies may not be required to pay similar taxes keeping in view the provisions of paragraph (d) of 
Article XIV. 
            (iii) Government subsidized services may only be extended to UAE nationals. 
                                               
25 GulfBase online information. Viewed at: http://www.gulfbase.com/  [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
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   Limitations on market access  
Mode Limitations on national treatment  
Mode 
Mode 4 
Market access:  Unbound except for measures concerning entry and temporary stay of natural persons who fall into one of the 
following categories: 
(i)  Business visitors:  persons not based in the territory of the UAE and receiving no remuneration from a source within the U AE, 
who visit the UAE on behalf of a service supplier for business negotiations (and not for selling services directly to the publi c) or for 
doing preparatory work for establishing commercial presence in the UAE. Entry for persons in this category shall not be for mor e 
than ninety days. 
(ii) Intra-corporate transferees:  managers , executives and specialists (as defined below) who have been in the employment of a  
juridical person of another Member outside the UAE, for a period of not less than one year prior to the date of application for  entry 
into the UAE and are being transferred to a branch or affiliate in the UAE of the aforesaid juridical person. Entry will be sub ject to 
the following conditions: 
a)  The number of managers, executives and specialists shall be limited to 50% of the total number of managers, executives and 
specialists of each service supplier. 
b)  Their entry shall be for a period of one year subject to renewal for two additional years with a maximum of three years. 
c)  Their stay in the UAE will be subject to UAE labour and immigration laws. 
Note: Mode 1: Cross-border supply. 
 Mode 2: Consumption abroad.  Mode 3: Commer cial presence. 
 Mode 4: Presence of natural persons. 
 Source: WTO, World Bank I-TIP online database. 
4.3.2.3  Policies 
4.100.  For most construction projects, the client engages consultants for the design, supervision, 
and management of the project and, separately, a contractor for the construction. However, for 
large-scale projects, turnkey contracts are ofte n used: either engineering, procurement, and 
construction (EPC) contracts or engineering,  procurement, construction, and commissioning 
(EPCC) contracts. In most cases, the contracts are based on the International Federation of 
Consulting Engineers (FIDIC) forms.26 However, public procurement contracts in Abu Dhabi usually 
require the use of the Abu Dhabi Government Conditions of Contract, and in Dubai the Roads and 
Transport Authority and the Dubai Municipality also have their own forms of contract. Furthermore, 
the nature of large-scale projects involving international companies may also require project-specific contracts. 
4.101.  As for any other type of business, to carry out construction work in the UAE a contractor 
must have commercial presence through incorporation in an emirate (with maximum foreign 
ownership of 49%) or a branch office. In both cases, a contractor's, consultant's, or industrial licence from the authorities in the emirate is required: a contractor's licence is required for 
construction related works; a consultant's licence for services such as project management, 
design, engineering, etc.; and an industrial licence is required for manufacturing. In some cases, such as EPC contracts, it may be necessary to have both a contractor's and consultant's licence. In 
addition, in Dubai, marketing of construction works or services requires incorporation as a local 
entity in Dubai. Other requirements may also apply depending on the activity of the enterprise, the emirate, the project, etc.
27 
4.102.  In Abu Dhabi, the requirements for the classification of contractors are set out in 
Regulation No. 2 of 2009 concerning Contractor Classification in the Emirate of Abu Dhabi and 
Administrative Resolution No. 56 of 2010 concerning Instructions for Contractor Classification. The requirements for the classification of engineering consultancy offices are set out in Regulation 
No. 1 of 2009 concerning Engineering Consulting Office Classification in the Emirate of Abu Dhabi 
and Administrative Resolution No. 58 of 2010 concerning Instructions on Engineering Consultancy Offices Classification.  The rules set out the classification of licences by type of work (e.g. road 
projects, building projects, grand civil projects, etc.), the staff and experience requirements for 
different specialties and categories of licence, and the minimum capital requirements for different categories of licence. The value of a contract in which a contractor may participate depends on the category of licence. 
                                               
26 See FIDIC online information. Viewed at: http://fidic.org/bookshop/about-bookshop/which-fidic-
contract-should-i-use  [January 2016]. 
27 Mackenzie, A., Stevens, P., Sellrs, L. (Simmons and Simmons) (2015), Construction and projects in 
the United Arab Emirates: overview , Practical Law, Thomson Reuters. Viewed at: 
http://uk.practicallaw.com/resource/1-519-3663  [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
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  4.103.  To be classified as an architect, civil engi neer, or structural engineer it is essential to be 
part of an official registered corporation or organization and to be a member of the UAE Society of Engineers. The Society was formally organized under Ministerial Decree No. 33 of 1979 and it joined the Arab Engineers Federation in 1984, th e World Federation of Engineering Organizations 
in 1985, and the Gulf Engineering Union in 1986. 
4.104.  Each emirate is responsible for building codes. The Abu Dhabi Building Codes were 
launched by the Department of Municipal Affairs in 2013 and applied to all projects in 2014. 
According to the authorities, the Building Codes are based on the International Building Code of 
the International Code Council which has been adapted to meet the specific requirements of Abu Dhabi. The adaptations were proposed by several committees consisting of representatives of the 
public and privates sectors and academia.
28 In Dubai, the Code of Construction and Safety Practice 
was published in 2008 and followed by other codes,  including the Seismic Design Code for Dubai 
and the Dubai Wind Code. More recently the incr eased emphasis on environmental sustainability 
has resulted in the Green Building Regulations and Specifications and the Practice Code for Green 
Building in 2014. 
4.3.3  Telecommunications 4.105.  Regarding sector governance, the telecommunications sector is governed according to 
Federal Law by Decree No. 3 of 2003 regarding the Organization of the Telecommunications 
Sector, as amended (the Telecommunications Law). The UAE Cabinet approves and sets national policy and the Telecommunications Regulatory Authority (TRA), which was established by the Telecommunications Law as the independent regulator of the sector, is responsible for 
implementing the national policy. 
4.106.  The UAE made no commitments on telecommunications under the GATS. 4.107.  Under the Telecommunications Law, the TRA's responsibilities include: 
 ensuring that public telecommunications services are sufficient to satisfy the public 
demands for such services; 
 promoting the interests of subscribers;  
 ensuring that service providers meet quality of service standards;  
 encouraging and promoting the developm ent of the telecommunications and IT 
sectors; and 
 promoting industry related training institutions, under which the TRA manages the ICT 
Fund, which it uses to provide scholarships for industry-related higher education and 
seed capital funding for UAE-grown industry-related ventures. 
4.108.  The Telecommunications Law provides that no person may supply telecommunications 
services to the public or conduct a regulated activity unless licensed to do so, and it also prevents 
the TRA from issuing licences to any entity having less than 51% local ownership. 
4.109.  Since its inception, the TRA has exercised its powers under the Telecommunications Law to 
develop a regulatory framework, which includes, but is not limited to: licences; interconnection 
regulations; competition safeguards; retail price controls; consumer protection regulations; a national spectrum allocation table; a national spectrum plan; a national numbering plan; type approval regulations; and quality of service standards. 
                                               
28 Abu Dhabi eGovernment online information. Viewed at: 
https://www.abudhabi.ae/portal/publi c/en/business/business_startup_and_ operationalisation /business_premis
es/gen_info73?docName=ADEGP_DF_285650_EN&_adf.c trl-state=gq35w7dw7_4&_afrLoop=1895703911486 
4224# !  [January 2016]. WT/TPR/S/338 • United Arab Emirates 
 
- 82 - 
 
  Table 4.12 Licences issued by the TRA 
Licence 
number Licensee Licensed services 
1/2006 Emirates Telecommunications 
Corporation (Category 1 Licence) Fixed telecommunications services  
International telecommunications services Internet service provider (ISP) VSAT services Satellite earth stations Ancillary services Digital cellular and mobile telecommunications services 
Maritime services 
Telegraph and telex services Paging services Cable television network services 
2/2006 Emirates Integrated 
Technology Company 
(Category 1 Licence) Fixed telecommunications services 
International telecommunications services 
Internet service provider (ISP) 
VSAT services 
Satellite earth stations 
Ancillary services 
Digital cellular and mobile telecommunications services 
1/2009 Nedaa Public access mobile radio 
2/2010 Al Yah Satellite 
Communications Company Satellite services 
3/2010 Alyah Advanced Satellite 
Communications Services Satellite services 
4/2010 Star Satellite Communications 
Company Satellite services and broadcasting satellite services 
5/2011 Al Maisan Satellite 
Communications Company Broadcasting satellite transmission services 
6/2011 Media Zone Intaj FZ LLC Satellite uplink – broadcasting 
7/2013 Thuraya Telecommunications 
Company Global mobile personal communications satellite (GMPCS) 
8/2016 Inmarsat Communications 
Company Satellite services 
Source: Telecommunications Regulatory Authority. 
4.110.  Domestic services are provided predominantly by Emirates Telecommunications 
Corporation (trading as "Etisalat"), the former incumbent, and Emirates Integrated Technology 
Company (trading as "du"). Both are majority state-owned: Etisalat is 60% state-owned and 40% 
owned by public shareholders; and du is 39.5% owned by the Emirates Investment Authority, 
19.75% by Mubadala Development Company, 19.5% by the Emirates Communications and 
Technology Company LLC and 21.25% by public shareholders. Neither licensee pays corporation 
tax, instead each pay royalties to the Federal Government based on a percentage of revenues and net profits arising from the provision of regulated activities. 
4.111.  As of November 2015, the UAE had around 18.12 million mobile subscriptions. This 
represents a mobile penetration rate of around 213%, and, by the end of Q3 of 2015, du had 
increased its market share to around 43%. Mobile number portability (MNP) was introduced in 2014 and, during the first three quarters of 2015,  an average of 9,869 mobile subscriptions per 
month used MNP to switch their mobile services from one licensee to the other.  
4.112.  According to the authorities, price benchmarking studies indicate that the UAE’s mobile 
pricing levels are reasonable, and in some instances low, by international and regional standards. 
For example, the AREGNET Price Benchmarking study compares prices of various "baskets" of 
mobile services and shows prices are lower than OECD average prices.  
4.113.  Regarding fixed-line services, in October 2015 the TRA issued a directive mandating the 
introduction of bitstream access services and in December 2015 sharing of passive infrastructure. 
Whilst nationwide competition in fixed-line services in still in its infancy, both Etisalat and du have 
gained new customers, whether by customers swit ching from one licensee to the other, or by 
customers taking additional services, in parallel, from a second supplier. WT/TPR/S/338 • United Arab Emirates 
 
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  4.114.  Subscriptions to triple-play services (broadband, home phone, and internet protocol TV) 
are common in the UAE and this makes meaningful international pricing comparisons for single-play services difficult. However, the triple-play subscriptions include unlimited national calls. Regarding voice over internet protocol (VoIP) services, VoIP is a regulated activity that only 
Etisalat and du are licensed to provide. 
4.3.4  Transport 4.115.  The transport sector is a key contributor to the UAE economy both in terms of its 
contribution to GDP and employment in the economy. According to the Federal Competitiveness 
and Statistics Authority, transport, storage, and communications contributed 6.4% to GDP and 
7.8% to employment.
29  
4.116.  Transport and logistics is a key feature of the UAE's growth and development policy. As 
such, during the review period the development an d expansion of both maritime and air transport 
services has continued.  
4.117.  Each emirate has an independent transport policy. The Department of Transport (DoT) is 
responsible for all transport-related matters, including transport policy and development in Abu 
Dhabi. In Dubai, the Dubai Roads and Transport Authority regulates road and maritime transport, while the Dubai Civil Aviation Authority (DCAA) and Dubai Airports regulate air transport in the 
emirate. The DCAA, which was formed in 2007, is responsible for inter alia : defining the general 
policy for civil aviation in the emirate, regulating air transport in the emirate in line with federal legislation, implementing bilateral and multilater al air service agreements within the emirate, 
authorizing the scheduled and non-scheduled air operators licensed by the GCAA to operate air 
services to the airports in the emirate, and im plementing environmental policies and consumer 
protection legislation within the emirate. Dubai Airport Corporation
30 and Dubai Air Navigation 
Services31 were also established in 2007. The former is responsible for operating aerodromes in 
the Emirate of Dubai whilst the latter provides air navigation services within the Emirate of Dubai 
and the Northern Emirates. Additionally, at the federal level, the Federal Transport Authority (FTA) and the General Civil Aviation Authority are responsible for inter-emirate and international 
transport policy.
32 
4.118.  The UAE has not included any transport sectors in its 1994 Schedule of GATS 
Commitments.33 
4.3.4.1  Air transport 
4.119.  All activities related to civil aviation at the federal level in the UAE are managed by the 
General Civil Aviation Authority (GCAA), which is an autonomous body. 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 in the United Arab Emirates. The GCAA is responsible for ensuring safety and security for the aviation sector through oversight and th e development of regulations; and for providing 
navigation services, registration, and licensing serv ices for the UAE aviation industry. Additionally, 
the GCAA proposes general air transport policy guidelines and relevant legislation to the Council of Ministers, and enforces international agreements  and conventions. The aviation authorities at 
emirate level are involved with operational matters at their respective airports. They represent the 
interests of the stakeholders in each emirat e in air services agreements (ASA), through 
participation in preparatory meetings, work comm ittees, and exchanges of views with the GCAA. 
For example, Abu Dhabi's DoT secures traffic rights in coordination with the GCAA. Carriers 
                                               
29 FCSA online information. Viewed at: 
http://www.fcsa.gov.ae/ReportsByDepartmen tEnglish/tabid/104/Default.aspx?MenuId=1  [March 2016]. 
30 Established by Law No. 23 of 2007.  
31 Established by Law No. 22 of 2007. 
32 The FTA, which replaced the Ministry of Transport under Federal Law No. 1 of 2006, is in charge of 
setting general policies and regulati ons related to inter-emirate and international land (road and railway) 
transport and international maritime transport. The GCAA was set up in 1996 and is in charge of air transport 
in the UAE. 
33 WTO document GATS/SC/121, 2 April 1996. WT/TPR/S/338 • United Arab Emirates 
 
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  wishing to conduct commercial air transport in the UAE must obtain an Air Operator Certificate 
from the GCAA. 
4.120.  Cabotage operations, of cargo and passengers, are limited 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. The UAE has 
bilateral air services agreements with 158 co untries, including 88 open skies agreements 
(Table A4.1). Based on the traffic rights specified in the respective air services agreements, 
airlines decide their own capacity (frequency an d aircraft type), subject to approval by the 
authorities. The UAE is a signatory to the IATA air services agreement. Under this non-binding multilateral agreement, airlines may merge across borders, acquire airlines in other countries, or tap into international equity markets or private equity investors.  
4.121.  Over the past couple of decades the UAE has become an international air transport hub. 
Two of the largest international airlines are based in the UAE. The Emirates airlines corporation, established by  Law No. 2 of 1985 of the Emirate of Du bai, is currently the third-largest 
international carrier in the world based on schedul ed passenger-kilometres flown, the fifth-largest 
airline in the world in terms of revenue and the fourth-largest airline in the world in terms of international passengers carried. Emirates is a wholly owned subsidiary of the Government of 
Dubai through its investment arm, the Investment Corporation of Dubai. During the period under 
review (2012-15), the airline grew at an average annual rate of approximately 15% in terms of revenue. In 2015, the airline had a turnover of over US$24 billion and paid the Dubai Government US$708 million in dividend. There were no details available of any preferential treatment the 
airline receives, including of fuel prices, sovereig n loan guarantees or preferential treatment at 
Dubai airport. 
4.122.  Etihad Airways was established by Royal (Amiri) Decree in July 2003. It is the flag carrier 
of Abu Dhabi and the second-largest airline of th e United Arab Emirates. The airline is wholly 
owned by the Government of Abu Dhabi and is base d at Abu Dhabi International Airport. In 2014, 
the airline had a turnover of US$7.6 billion, pr ofits of US$257 million and over 17,000 employees. 
Furthermore, the airline carried nearly 15 million passengers in a fleet of 110 aircraft. Additionally, 
Etihad Airways has been acquiring equity stakes in other airlines; these include Air Serbia (49%), Air Seychelles (40%), Air Berlin (29.21%), Alitalia (49%), Darwin Airline (33.3%), Jet Airways (24%) and Virgin Australia (25%). There were no details available of any preferential treatment 
the airline receives, including of fuel prices, sovere ign loan guarantees or preferential treatment at 
Dubai airport. 
4.123.  Additionally, two budget carriers are also based in the UAE; these are Air Arabia and Fly 
Dubai. Air Arabia was formed by an Emiree Decree No. 2/2003 in 2003. Today, it is a publicly 
listed company with the Government of Sharjah being the biggest shareholder. Air Arabia operates out of Sharjah International Airport, and Ras al-Khaimah International Airport. Dubai Aviation 
Corporation (trading as Flydubai) is wholly owned by the Dubai Government. It was established by 
Law No. 11 of 2008. It is based at Dubai Airport.   
4.124.  The UAE has seven national airports; the largest of these are the Dubai International 
Airport, Dubai World Central (DWC) and Abu Dhabi International Airport. 
4.125.  Dubai International is the world's busiest airport in terms of international passenger traffic 
and the sixth-busiest airport in the world in terms of total passenger traffic, it is also the third-busiest cargo airport in the world. In 2014, the airport handled 70.5 million passengers and 2.37 
million tonnes of cargo and registered 357,339 aircraft movements. As of January 2015, there are 
over 8,000 weekly flights operated by 140 airlines  to over 270 destinations. The airport is owned 
by the Government of Dubai and operated by Du bai Airports Company, which is wholly state-
owned. 
4.126.  Dubai International is an important contributor to the Dubai economy. Over 100,000 
people are employed at the airport and it contri butes nearly US$27 billion to the economy, which 
represents around 27% of Dubai’s GDP and 21% of the employment in Dubai. It is predicted that 
by 2020, the economic contribution of Dubai’s aviati on sector will rise to 37.5% of the city's GDP WT/TPR/S/338 • United Arab Emirates 
 
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  and, by 2030, the economic impact of aviation is  projected to grow to US$88.1 billion and support 
1.95 million jobs in Dubai or 44.7% of the GDP and 35.1% of the total employment.34 
4.127.  The airport revealed its future plans in  May 2011, which involve construction of a new 
concourse, which is expected to bring the total capacity of the airport to over 90 million 
passengers and will open in 2016. Also the cargo me ga terminal, which will have the capacity to 
handle 3 million additional tonnes of cargo a year, is expected to be operational in 2018.  
4.128.  Ground handling services at Dubai International Airport are provided by dnata Ground 
Handling Services while ground handling for Emirates is handled by its Airport Services 
Department. In Dubai, Emirates provides in-house aircraft maintenance facilities through its engineering unit called Emirates Engineering. 
4.129.  Dnata, which is a part of The Emirates Gr oup and wholly state-owned, is one of the largest 
suppliers of combined air services in the world offe ring aircraft ground handling, cargo, travel, and 
flight catering services across six continents . In 2015, dnata employed over 32,000 employees 
across 75 countries and operated out of 127 airports across six continents and servicing over 150 
airlines. However, it is not clear if any support or  preferential treatment is provided to dnata, as 
this information was not made available to the Secretariat. 
4.130.  Additionally, the development of DWC is under way. The airport is also owned by the 
Government of Dubai and is operated by Dubai Airports Company. The airport officially opened on 
27 June 2010 and mainly handles cargo flights. As  of December 2014, only a handful of airlines 
operate passenger services out of Al Maktoum In ternational Airport. The project was originally 
expected to be fully operational by 2017; however, due to the global financial crisis, the project is 
not expected to be completed until 2027. Once completed, the airport is expected to have an 
annual capacity of 16 million tonnes of freight and 240 million passengers. 
4.131.  Abu Dhabi International Airport is located in the Emirate of Abu Dhabi, the capital of the 
United Arab Emirates. In 2014, the airport served around 20 million passengers, and 32 airlines 
offered service to 99 destinations in 55 countries. The airport is owned and operated by the Abu Dhabi Airports Company. The Abu Dhabi Airports Company, through its subsidiaries, owns and 
operates airports and check-in facilities. It offers aviation-related services, such as airline 
development and cargo. Ground handling services  are provided by Etihad Airways. The company 
also provides commercial services, including retail, catering, property management, hospitality, and information and communication services, and airline marketing services. It serves airlines, 
operators, and other businesses.  However, it is not clear if any support or preferential treatment is 
provided to Etihad, as this information was not made available to the Secretariat.   
4.132.  Development work has started on a ne w passenger terminal, the main building and 
centrepiece of the new airport, which will be situated between the two runways and known as the 
Midfield Terminal. Upon completion in 2017, the Midfield Terminal will increase the airport’s 
passenger capacity to more than 30 million per year, with options for this to double in capacity to 
60 million. The expansion master plan projects al so include a third parallel runway, a new air 
traffic control centre, and enhanced cargo and maintenance facilities. 
4.133.  Etihad Airways Engineering, formerly kn own as Abu Dhabi Aircraft Technologies (ADAT), 
was acquired by Etihad Aviation Group in 2014. It provides line, light and heavy maintenance 
services. ADAT was part of the Mubadala Development Company, wholly owned by the 
Government of the Emirate of Abu Dhabi. 
4.134.  Sharjah International Airport, the UAE's oldest airport, is an important cargo hub and 
transhipment point in the region, especially for in termodal cargo arriving by sea and air-freighted 
onwards. The airport has achieved a milestone of over 10 million passengers in 2015. It serves 23 passenger and cargo carriers offering scheduled services to over 120 destinations. Sharjah 
International Airport is managed and operated by the Sharjah Airport Authority. Sharjah Aviation 
Services is the official ground handling service provider; it provides various facilities, including customer services and ramp and cargo handling, to various airlines. Being a major hub for cargo 
                                               
34 Oxford Economics, Quantifying the Economic Impact of Aviation in Dubai , November 2014. WT/TPR/S/338 • United Arab Emirates 
 
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  operations, the airport has also attracted several international freight forwarders and cargo agents 
to undertake operations to/from Sharjah International Airport. 
4.3.4.2  Maritime transport 4.135.  The UAE has more than 15 commercial ports, these include container handling facilities, oil 
terminals, industrial ports and fishing ports. The main commercial cargo ports are Khalifa Port in 
Abu Dhabi, Jebel Ali Port in Dubai and Khorfakkan container terminal in Sharjah. Additionally Zayed Port in Abu Dhabi and Rashid Port in Dubai cater to luxury cruise ships. In 2015, the 
commercial fleet under the UAE flag totalled 306 ships and nearly 192 thousand gross tonnes.
35 
The UAE's ports export mainly oil and gas, but also raw materials and finished goods. Imports 
consist of intermediate and consumer goods, as well as a significant re-export trade within the Gulf region, East Africa, and the Indian subcontinent. 
4.136.  At the federal level, maritime transport is governed by UAE Federal Law No. 26 of 1981 as 
amended in 1988 (known as the UAE Maritime Code). The Code governs and regulates all 
maritime practices in the UAE. The FTA is the regu latory authority. As such, the FTA is responsible 
for inter alia: vessel registration and ownership; crew issues and maritime insurance; safe 
operation of vessels; pilotage and towage; and marine accidents salvage. The law is applicable to all the emirates and is based on maritime principles set out in international conventions. The FTA 
also manages the ship registry and seafarers licensing, issues navigational licences, monitors 
compliance with international standards, and levies fees. Furthermore, the FTA is also in charge of all security, seaworthiness, and communications aspects of marine navigation, as well as compliance with international standards. Additionally, several relevant ministerial decrees or local 
laws regulate registration of vessels, crewing, classification of vessels, restrictions with regard to 
activities undertaken by foreign flag vessels, and other port activities. 
4.137.  The regulation of port and shipping servic es is shared between the FTA and the respective 
port authority of each emirate (ports are owned by  the respective governments of the emirates).  
4.138.  The UAE is a signatory to the following international treaties and conventions: IMO 
Convention and amendments; SOLAS Conventi on 1974; SOLAS Protocol 1978; Load Lines 
Convention 1966; Tonnage Convention 1969; COLREG Convention 1972; STCW Convention 1978; 
SAR Convention 1979; INMARSAT Convention 1976; INMARSAT Operating Agreement 1976; London Convention 1972; Intervention Convention 1969; CLC Convention 1969; CLC Protocol 1976; CLC Protocol 1992; Fund Convention 1971; Fund Protocol 1992; LLMC Convention 1976; 
and Salvage Convention 1989. 
4.139.  At the time of the last review, registering a vessel in the UAE under a UAE flag required 
that the vessel be at least 51% owned by a UAE national or a company with its management 
based in the UAE. Only ships registered in the UAE may conduct cargo or passenger cabotage 
operations.  
4.140.  Foreign flag vessels are permitted to operate in UAE territorial waters, mainly in the 
context of offshore projects. Foreign flag vessels must have a contract with one 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 FTA in the form of a licence. In addition, foreign 
ships must not be older than 25 years. 
4.141.  DP World, which is majority owned by th e Government of Dubai, is the operator of the 
Jebel Ali Port in Dubai. Jebel Ali Port is the ninth-largest container port in the world with a capacity 
of over 19 million TEUs. Expansions currently under way will increase capacity to over 22 million 
TEUs by 2018. DP World has a portfolio of 65 marine terminals globally, including Fujairah Container Terminal in the UAE.  
4.142.  Abu Dhabi Ports, which is a wholly state-owned company, is the developer and manager of 
ports and industrial zones in Abu Dhabi. As such, it is the owner of the state-of-the-art Khalifa Port, which is operated by Abu Dhabi Terminals. Khalifa Port started operations in 2012. The port 
                                               
35 Information provided by the authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  handles general cargo and all of Abu Dhabi's container traffic (which was shifted from Port Zayed). 
The port currently has an annual container capacity of 2.5 million TEU and 12 million tons of general cargo. It is envisaged that when all development phases are completed (by 2030), the 
port would have a container capacity of 15 mill ion TEU and 35 million tons of general cargo. 
4.143.  The main ports in Sharjah are Port Khalid,  Al Hamariah Port, and Khorfakkan, on the east 
coast. Sharjah's ports are regulated and run by the Sharjah Port Authority (Sharjah's Department of Seaports and Customs). Port operations are go verned by the (Sharjah) Port Act of 1977. In 
1976, the Authority established the company Gulftainer to manage and operate the container 
terminals in Port Khalid and Khorfakkan. 
4.3.5  Tourism 4.144.  Highlighted by the Government under the UAE Vision 2021 as a key sector, tourism is of 
growing importance to the UAE economy. Travel and tourism directly contributed Dh 61.6 billion to 
GDP in 2014 (4.1% of GDP), which is forecasted to increase by 4.1% per year in the period 2015-2025 to reach Dh 96.9 billion (4.5% of GDP) by 2025 according to the World Travel and Tourism 
Council (WTTC). The total contribution of travel and tourism to GDP in 2014 was Dh 126.7 billion 
(8.4%).
36 
4.145.  The UAE made commitments in its GATS Schedule under hotels and restaurants and travel 
guide services with no limitations under cross-bo rder supply, consumption abroad, or commercial 
presence, while presence of natural persons was unbound except for horizontal commitments (Table 4.13). 
Table 4.13 UAE WTO tourism and trav el-related services commitments 
 Limitations on market access  
Mode Limitations on national treatment  
Mode 
 1 2 3  4 1 2 3 4 
9. Tourism and travel-related services 
9.A Hotels and restaurants 
(including catering) None None None  Unbound except as 
indicated in the 
horizontal section None None None Unbound except as 
indicated in the 
horizontal section 9.C Travel guide services 
HORIZONTAL SECTION 
Mode 3 
Market access: Commercial presence for all sectors will be throug h either (i) a representative office or (ii) an incorporation as a 
company with maximum foreign equity participation of 49% subject to UAE law. 
National treatment: (i) Acquisition of land and real estate is not permitted to foreigners or to companies in which foreign 
nationals have a shareholding. 
 (ii) Foreign nationals or companies with foreign shareholdings may be required to pay direct taxes on 
income derived from work or operations in the UAE, whereas local services suppliers or local UAE 
companies may not be required to pay similar taxes keeping in view the provisions of paragraph (d) of 
Article XIV. 
            (iii) Government subsidized services may only be extended to UAE nationals. 
Mode 4 
Market access:  Unbound except for measures concerning entry and temporary stay of natural persons who fall into one of the 
following categories: 
(i)  Business visitors:  persons not based in the territory of the UAE and receiving no remuneration from a source within the U AE, 
who visit the UAE on behalf of a service supplier for business negotiations (and not for selling services directly to the publi c) or for 
doing preparatory work for establishing commercial presence in the UAE. Entry for persons in this category shall not be for mor e 
than ninety days. 
(ii) Intra-corporate transferees: managers, executives and specialists (as defined below) who have been in the employment of a 
juridical person of another Member outside the UAE, for a period of not less than one year prior to the date of application for  entry 
into the UAE and are being transferred to a branch or affiliate in the UAE of the aforesaid juridical person. Entry will be sub ject to 
the following conditions: 
a)  The number of managers, executives and specialists shall be limited to 50% of the total number of managers, executives and 
specialists of each service supplier. 
b)  Their entry shall be for a period of one year subject to renewal for two additional years with a maximum of three years. 
c)  Their stay in the UAE will be subject to UAE labour and immigration laws. 
Note: Mode 1: Cross-border supply. 
 Mode 2: Consumption abroad.  Mode 3: Commer cial presence. 
 Mode 4: Presence of natural persons. 
 Source: WTO, World Bank I-TIP online database. 
                                               
36 WTTC (2015), Travel & Tourism – Economic Impact 2015: United Arab Emirates , London, p. 3.  WT/TPR/S/338 • United Arab Emirates 
 
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  4.146.  The authorities stated that promotion of the UAE as a year-round destination is a strategic 
objective targeting a range of high-growth globally diversified markets to ensure limited exposure to geography-specific volatilities. In November 2013, Dubai won the right to host the 2020 World 
Expo, the first time that the exhibition will have been staged in the Middle East. The World Expo is 
expected to play an important role as the six-month event aiming to attract around 25 million 
visitors will not only serve Dubai's tourism and hospitality sector but could extend to the other emirates.  
4.147.  The Arab Spring of 2011 had a major positive impact on UAE tourism, leading to an 
unprecedented influx of tourists from the wider region. In 2015, Dubai attracted over 14.2 million overnight tourists in 2015 (an increase of 8% over 2014) and has around 670 hotel establishments offering over 98,000 hotel rooms. In 2015 Abu Dhabi attracted around 4 million visitors (an 
increase of 18% compared to 2012). Visitors to Dubai come from a variety of regions: 23% are 
from other GCC member States; 21% from Wester n Europe; 16% from South Asia; and 12% from 
the Middle East North Africa region.
37 
4.148.  The development of tourist infrastructure and attractions is one of the Government's top 
priorities to diversify the economy. According to the Travel & Tourism Competitiveness Report 2015, the UAE continues to lead the MENA region at 24
th out of 141 economies (up four places 
since 2013), attracting both leisure and business trav ellers, with a growing number of international 
fairs and exhibitions and increasingly diverse creative industries. The UAE provides a mix of demand generators in the corporate, MICE (meetin gs, incentives, conferences and exhibitions) and 
leisure sectors, including the hosting of major sporting events, such as the Formula One Grand 
Prix and Dubai Shopping Festival.
38  
4.149.  One of the most important competitive advantages of the UAE is its location as an 
international hub for global air travel. The development of a number of landmark real estate 
developments has added to the attraction of the UAE as a destination for tourism with Burj Al 
Arab, Burj Khalifa, Yas Island, and Palm Jumeirah to name a few. Furthermore, the country has carried out effective marketing and branding campaigns and has adopted policy rules and 
regulations that are conducive to the development of the sector such as ongoing reforms to the 
visa regime. 
4.150.  In terms of regulation, each emirate develo ps and promotes tourism separately and, at the 
federal level, there are the National Council of Tourism and Antiquities (NCTA) and the Department 
of Naturalization, Residency and Ports Affairs (DNRPA). The NCTA started operations in 2009 with 
the objective of positioning the UAE as the best  tourism destination on both the regional and 
international level. In 2014, the DNRPA announced that a new range of visas and entry permits 
that are significant for the cruise ship and medical travel segments would be introduced (Table 
4.14). 
                                               
37 The origin of other visitors is: 8% from North an d South East Asia; 7% from the Americas; 5% from 
Africa 5%; 5% from Russia-CIS-Eastern  Europe; and 3% from Australasia. 
38 World Economic Forum online information. Viewed at: http://reports.weforum.org/travel-and-
tourism-competitiveness-report-2015/  [March 2016]. WT/TPR/S/338 • United Arab Emirates 
 
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  Table 4.14 Regulatory reforms, 2014 
Reform Authority Measures 
Multi-entry cruise visas UAE DNRPA Dh 200 visa allowing visits to ports 
in UAE and Oman 
Medical tourism visas UAE DNRPA Dh 500 for single trip 
Dh 1400 for multi-trip 
New accommodation classifications DTCM University residences, holiday lets 
and youth hostels included 
Hotel planning rules speeded up DLD All plans for hotels to be processed 
in 60 days 
Tourism Dirham DTCM New Tourism Dirham was 
introduced for overnight stays, Dh 7-20 per room per night 
Source: UAE Department of Naturalization, Residency and Ports Affairs (DNRPA); Dubai Department of 
Tourism and Commerce Management (DTCM); Dubai Land Department (DLD); and Oxford Business Group, The Report: Dubai 2015 , p. 183. Viewed at: 
www.oxfordbusinessgroup. com/country/UAE:Dubai . 
4.151.  In Dubai, the UAE’s most popular tourist destination, regulation of tourism rests with the 
Department of Tourism and Commerce Management  (DTCM). In 2014, the DTCM introduced a 
Tourism Dirham, which is a fee charged to hotel guests for staying in hotels (Table 4.14). In Abu 
Dhabi, the tourism sector is regulated by the Abu Dhabi Tourism and Culture Authority which 
currently levies a 6% tourism fee on the accommodation sector in the emirate. WT/TPR/S/338 • United Arab Emirates 
 
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the Emirate of Abu Dhabi, presentation by the Environment Agency – Abu Dhabi. 
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 WT/TPR/S/338 • United Arab Emirates 
 
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  5  APPENDIX TABLES 
Table A1.1 Non-oil direct exports and re-exp orts by HS sections and main chapters, 
2011-14 
(US$ million and %) 
Description 2011  2012 2013 2014  
Total 88,433 105,705 103,540 102,334 
  (% of exports and re-exports) 
1 - Live animals; animal products 0.5 0.5 0.6 1.0 
 04. Dairy produce; birds' eggs; natural honey; edible products of 
animal origin, not elsewhere specified or included 0.4 0.3 0.4 0.4 
 01. Live animals 0.0 0.0 0.1 0.4 
2 - Vegetable products 1.8 1.5 1.6 1.7 
 08. Edible fruit and nuts; peel of citrus fruit or melons 0.6 0.6 0.7 0.8 
 09. Coffee, tea, maté and spices 0.2 0.2 0.3 0.3 
3 - Animal or vegetable fats and oils; prepared edible fats 0.6 0.3 0.3 0.3 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  3.3 2.9 3.3 3.3 
 24. Tobacco and tobacco substitutes 0.7 0.8 0.9 0.9 
 17. Sugars and sugar confectionery 0.8 0.6 0.7 0.5 
5 - Mineral products 2.1 1.9 2.3 2.3 
 27. Mineral fuels, mineral oils and products of their distillation; 
bituminous substances; mineral waxes 1.3 1.0 1.2 1.2 
 25. Salt; sulphur; earths and stone; plastering materials, lime and 
cement 0.8 0.9 1.0 1.1 
6 - Products of the chemical or allied industries 2.6 2.1 2.2 2.4 
 33. Essential oils and resinoids; perfumery, cosmetic or toilet 
preparations 1.0 0.9 0.9 0.9 
 38. Miscellaneous chemical products 0.6 0.3 0.3 0.4 
7 - Plastics and articles thereof; rubber and articles thereof 3.9 5.2 4.4 4.6 
 39. Plastics and articles thereof 2.6 4.0 3.2 3.5 
 40. Rubber and articles thereof 1.3 1.2 1.1 1.1 
8 - Raw hides and skins, leather, furskins and articles thereof; travel 
goods, handbags; articles of animal gut 0.2 0.2 0.2 0.2 
9 - Wood and articles of wood; wood charcoal; cork and articles of 
cork 0.3 0.3 0.3 0.3 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard and articles thereof 0.7 0.8 1.2 1.2 
 49. Printed books, newspapers, pi ctures and other products of the 
printing industry; manuscripts, typescripts and plans 0.4 0.4 0.8 0.7 
11 - Textiles and textile articles 3.3 2.6 3.0 3.2 
 54. Man-made filaments; strip and the like of man-made textile 
materials 1.2 0.9 1.0 1.0 
 61. Articles of apparel and clothing accessories, knitted or 
crocheted 0.6 0.5 0.8 0.8 
 62. Articles of apparel and clothing accessories, not knitted or 
crocheted 0.5 0.4 0.4 0.4 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; 
artificial flowers 0.3 0.2 0.3 0.3 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass 
and glassware 1.7 1.2 1.5 1.3 
 69. Ceramic products 0.8 0.5 0.5 0.5 
 70. Glass and glassware 0.6 0.4 0.5 0.5 
14 - Natural or cultured pearls, precious or semi-precious stones, 
precious metals 47.2 50.2 44.0 36.3 
15 - Base metals and articles of base metal 5.6 6.7 8.0 10.1 
 76. Aluminium and articles thereof 1.3 1.8 2.1 4.1 
 73. Articles of iron or steel 1.3 1.6 1.6 2.0 
 72. Iron and steel 1.2 1.5 1.8 1.7 
 74. Copper and articles thereof 1.2 1.4 2.1 1.7 
16 - Machinery and mechanical appliances; electrical equipment; 
television image and sound recorders 14.1 12.2 15.1 16.4 
 84. Nuclear reactors, boilers, machinery and mechanical 
appliances; parts thereof 7.5 6.7 8.7 9.1 
 85. Electrical machinery and equipment and parts thereof; sound 6.6 5.6 6.4 7.3 WT/TPR/S/338 • United Arab Emirates 
 
- 93 - 
 
  Description 2011  2012 2013 2014  
recorders and reproducers, television image and sound recorders 
and reproducers, and parts and accessories of such articles 
17 - Vehicles, aircraft, vessels and associated transport equipment 10.0 9.5 10.2 12.8 
 87. Vehicles other than railway or tramway rolling stock, and 
parts and accessories thereof 7.1 7.7 7.4 10.1 
 88. Aircraft, spacecraft, and parts thereof 1.3 1.4 2.6 1.9 
18 - Optical, photographic, precision, medical or surgical 
instruments; clocks and watched; musical instruments 0.7 0.7 0.8 0.9 
19 - Arms ans ammunition 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles 0.9 0.8 0.8 0.9 
 94. Furniture; bedding, mattresses, mattress supports, cushions 
and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like; prefabricated buildings 0.6 0.5 0.5 0.6 
21 - Works of art, collectors' pieces and antiques 0.0 0.1 0.1 0.2 
Others 0.2 0.1 0.1 0.2 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  Table A1.2 Merchandise direct imports by HS sections and main chapters, 2011-14 
(US$ million and %) 
Description 2011  2012 2013 2014  
Total 164,071 181,699 186,476 189,567 
  (% of imports) 
1 - Live animals; animal products 1.9 1.9 2.0 2.2 
 04. Dairy produce; birds' eggs; natural honey; edible products of 
animal origin. 0.7 0.7 0.8 0.9 
 02. Meat and edible meat offal. 0.8 0.8 0.8 0.8 
2 - Vegetable products 4.0 3.4 3.5 3.7 
 08. Edible fruit and nuts; peel of citrus fruit or melons. 0.9 0.9 1.0 1.1 
 10. Cereals. 1.1 0.7 0.7 0.8 
 12. Oil seeds and oleaginous fruits; miscellaneous grains, seeds and 
fruit. 0.9 0.8 0.8 0.7 
3 - Animal or vegetable fats and oils; prepared edible fats 0.5 0.4 0.3 0.3 
4 - Prepared foodstuffs; beverages, spirit s and vinegar; tobacco  2.0 2.3 2.2 2.6 
 19. Preparations of cereals, flour, starch or milk. 0.3 0.4 0.4 0.4 
 21. Miscellaneous edible preparations. 0.4 0.4 0.4 0.4 
 24. Tobacco and manufactured tobacco substitutes. 0.2 0.3 0.3 0.4 
5 - Mineral products 2.4 2.0 2.4 2.1 
 27. Mineral fuels, mineral oils and products of their distillation. 1.7 1.5 1.5 1.5 
6 - Products of the chemical or allied industries 5.5 5.2 5.5 6.2 
 33. Essential oils and resinoids; perfumery, cosmetic or toilet 
preparations. 1.3 1.2 1.3 1.4 
 30. Pharmaceutical products. 1.0 0.9 1.1 1.2 
 28. Inorganic chemicals; organic or inorganic compounds of precious 
metals. 1.1 1.0 0.9 1.2 
 38. Miscellaneous chemical products. 0.6 0.6 0.6 0.7 
 29. Organic chemicals. 0.7 0.6 0.7 0.7 
7 - Plastics and articles thereof; rubber and articles thereof 2.9 2.8 2.7 3.0 
 39. Plastics and articles thereof. 2.1 2.0 2.0 2.2 
8 - Raw hides and skins, leather, furskins and articles thereof; travel 
goods, handbags; articles of animal gut 0.5 0.5 0.6 0.6 
 42. Articles of leather; travel goods,  handbags; articles of animal gut. 0.4 0.4 0.5 0.5 
9 - Wood and articles of wood; wood charcoal ; cork and articles of cork 0.6 0.6 0.5 0.6 
 44. Wood and articles of wood; wood charcoal. 0.5 0.5 0.5 0.5 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard and articles thereof 0.9 0.9 0.8 0.8 
 48. Paper and paperboard; articles of paper pulp, of paper or of 
paperboard. 0.7 0.6 0.6 0.6 
11 - Textiles and textile articles 3.4 3.4 3.5 3.8 
 61. Articles of apparel and clothing  accessories, knitted or crocheted. 0.8 1.0 1.0 1.1 
 62. Articles of apparel and clothing accessories, not knitted or 
crocheted. 1.0 0.9 0.9 1.0 
 54. Man-made filaments. 0.6 0.5 0.5 0.5 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; 
artificial flowers 0.5 0.6 0.7 0.8 
 64. Footwear, gaiters and the like; parts of such articles. 0.5 0.5 0.6 0.7 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass and 
glassware 1.2 1.0 0.9 1.0 
14 - Natural or cultured pearls, precious or semi-precious stones, 
precious metals 31.3 31.8 32.7 26.1 
15 - Base metals and articles of base metal 9.3 8.2 7.4 7.7 
 72. Iron and steel. 2.6 2.1 2.0 2.3 
 73. Articles of iron or steel. 3.6 3.1 2.3 2.2 
 74. Copper and articles thereof. 1.6 1.6 1.9 1.7 
 76. Aluminium and articles thereof. 0.7 0.6 0.6 0.7 
16 - Machinery and mechanical appliances; electrical equipment; 
television image and sound recorders 17.6 17.4 17.0 19.8 
 84. Nuclear reactors, boilers, machinery and mechanical appliances. 10.4 10.9 10.0 11.2 
 85. Electrical machinery and equipment; sound recorders and 
reproducers. 7.2 6.6 7.0 8.6 WT/TPR/S/338 • United Arab Emirates 
 
- 95 - 
 
  Description 2011  2012 2013 2014  
17 - Vehicles, aircraft, vessels and associated transport equipment 12.0 14.3 13.8 14.9 
 87. Vehicles other than railway or tramway rolling-stock, parts and 
accessories. 7.2 8.6 9.4 10.2 
 88. Aircraft, spacecraft, and parts thereof. 4.4 5.5 4.2 4.5 
18 - Optical, photographic, precision, medical or surgical instruments; 
clocks and watched; musical instruments 1.7 1.7 1.7 1.9 
 90. Optical, photographic, cinematographic, measuring, precision, 
medical or surgical instruments and apparatus. 1.2 1.2 1.1 1.2 
19 - Arms ans ammunition 0.1 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles 1.6 1.5 1.6 1.8 
 94. Furniture; bedding, mattresses, mattress supports, cushions and 
similar stuffed furnishings. 1.1 1.1 1.0 1.2 
21 - Works of art, collectors' pieces and antiques 0.0 0.0 0.0 0.1 
Others 0.0 0.0 0.0 0.0 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  Table A1.3 Non-oil free zones exports and re-e xports by HS sections and main chapters, 
2011-14 
(US$ million and %) 
Description 2011  2012 2013 2014  
Total 39,800 53,744 63,032 64,703 
  (% of exports and re-exports) 
1 - Live animals; animal products 0.1 0.1 0.1 0.2 
 04. Dairy produce; birds' eggs; natural honey; edible products of 
animal origin. 0.1 0.1 0.1 0.2 
2 - Vegetable products 0.2 0.3 0.4 0.4 
 09. Coffee, tea, maté and spices. 0.1 0.2 0.3 0.3 
 08. Edible fruit and nuts; peel of citrus fruit or melons. 0.0 0.1 0.1 0.1 
3 - Animal or vegetable fats and oils; prepared edible fats 0.1 0.1 0.1 0.1 
4 - Prepared foodstuffs; beverages, spirit s and vinegar; tobacco  4.2 4.3 4.1 5.0 
 24. Tobacco and manufactured tobacco substitutes. 3.3 3.4 3.2 4.1 
 22. Beverages, spirits and vinegar 0.7 0.6 0.6 0.7 
5 - Mineral products 10.2 8.8 6.5 7.2 
 27. Mineral fuels, mineral oils and products of their distillation. 10.1 8.8 6.4 7.1 
6 - Products of the chemical or allied industries 5.6 5.4 5.5 5.9 
 33. Essential oils and resinoids; perfumery, cosmetic or toilet 
preparations. 1.9 1.8 1.8 2.0 
 30. Pharmaceutical products. 0.8 0.9 1.1 1.0 
 29. Organic chemicals. 0.8 0.8 0.9 0.7 
7 - Plastics and articles thereof; rubber and articles thereof 2.1 2.1 1.9 1.9 
 39. Plastics and articles thereof. 1.4 1.3 1.2 1.1 
8 - Raw hides and skins, leather, furskins and articles thereof; travel 
goods, handbags; articles of animal gut 0.3 0.3 0.3 0.3 
 42. Articles of leather; travel goods, han dbags; articles of animal gut. 0.3 0.3 0.3 0.3 
9 - Wood and articles of wood; wood charcoal; cork and articles of cork 0.0 0.0 0.1 0.0 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard and articles thereof 0.2 0.2 0.3 0.4 
11 - Textiles and textile articles 2.0 1.9 2.3 2.4 
 61. Articles of apparel and clothing accesso ries, knitted or crocheted. 0.6 0.6 0.8 0.9 
 62. Articles of apparel and clothing accessories, not knitted or 
crocheted. 0.8 0.7 0.8 0.8 
 63. Other made up textile articles. 0.3 0.2 0.2 0.3 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; 
artificial flowers 0.4 0.5 0.5 0.6 
 64. Footwear, gaiters and the like; parts of such articles. 0.4 0.5 0.5 0.6 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass and 
glassware 0.7 0.6 0.5 0.5 
 70. Glass and glassware. 0.6 0.4 0.3 0.3 
14 - Natural or cultured pearls, precious or semi-precious stones, precious 
metals 13.9 11.0 5.8 4.2 
15 - Base metals and articles of base metal 3.9 4.3 5.2 3.8 
 73. Articles of iron or steel. 1.7 2.0 1.9 1.8 
 74. Copper and articles thereof. 0.6 0.5 0.7 0.6 
16 - Machinery and mechanical appliances; electrical equipment; television 
image and sound recorders 46.5 49.9 55.1 53.9 
 85. Electrical machinery and equipment; sound recorders and 
reproducers. 28.4 32.2 38.2 35.8 
 84. Nuclear reactors, boilers, machinery and mechanical appliances. 18.2 17.7 16.9 18.1 
17 - Vehicles, aircraft, vessels and associated transport equipment 5.4 5.2 7.1 9.2 
 87. Vehicles other than railway or tramway rolling-stock, parts and 
accessories. 4.9 3.7 5.6 7.4 
 89. Ships, boats and floating structures. 0.1 1.0 1.1 0.9 
18 - Optical, photographic, precision, medical or surgical instruments; 
clocks and watched; musical instruments 3.1 3.7 3.0 2.9 
 90. Optical, photographic, cinematographic, measuring, precision, 
medical or surgical instruments and apparatus. 2.1 2.8 2.3 2.2 WT/TPR/S/338 • United Arab Emirates 
 
- 97 - 
 
  Description 2011  2012 2013 2014  
19 - Arms ans ammunition 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles 1.1 1.2 1.2 1.1 
 95. Toys, games and sports requisites; parts and accessories thereof. 0.7 0.7 0.5 0.6 
21 - Works of art, collectors' pieces and antiques 0.0 0.1 0.0 0.0 
Others 0.0 0.0 0.0 0.0 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  Table A1.4 Merchandise free zones imports by HS sections and main chapters, 2011-14 
(US$ million and %) 
Description 2011  2012 2013 2014  
Total 60,284  68,696 76,736 80,436  
  (% of imports) 
1 - Live a; animal products 0.1 0.2 0.2 0.3 
 04. Dairy produce; birds' eggs; natural honey; edible products of 
animal origin 0.1 0.1 0.1 0.2 
2 - Vegetable products 0.6 0.7 0.8 0.6 
 09. Coffee, tea, maté and spices 0.2 0.3 0.3 0.2 
 10. Cereals 0.2 0.2 0.3 0.2 
3 - Animal or vegetable fats and oils; prepared edible fats 0.2 0.1 0.1 0.1 
4 - Prepared foodstuffs; beverages, spir its and vinegar; tobacco 3.7 3.6 3.2 4.0 
 24. Tobacco and manufactured tobacco substitutes 1.6 1.7 1.4 1.8 
 17. Sugars and sugar confectionery 1.3 1.1 0.8 1.1 
 22. Beverages, spirits and vinegar 0.6 0.6 0.6 0.7 
5 - Mineral products 6.3 8.5 7.3 7.7 
 27. Mineral fuels, mineral oils and products of their distillation 6.2 8.4 7.1 7.6 
6 - Products of the chemical or allied industries 5.7 5.6 6.4 6.4 
 30. Pharmaceutical products 1.2 1.2 2.0 1.7 
 33. Essential oils and resinoids; perfumery, cosmetic or toilet 
preparations 1.5 1.4 1.4 1.5 
 29. Organic chemicals 1.3 1.2 1.2 1.0 
 38. Miscellaneous chemical products 0.4 0.4 0.5 0.6 
7 - Plastics and articles thereof; rubber and articles thereof 2.6 2.5 2.4 2.3 
 39. Plastics and articles thereof 1.4 1.4 1.4 1.3 
8 - Raw hides and skins, leather, furskins and articles thereof; travel 
goods, handbags; articles of animal gut 0.4 0.5 0.5 0.6 
 42. Articles of leather; travel goods, han dbags; articles of animal gut 0.4 0.5 0.5 0.6 
9 - Wood and articles of wood; wood charcoal; cork and articles of cork 0.3 0.3 0.3 0.4 
 44. Wood and articles of wood; wood charcoal 0.3 0.3 0.3 0.4 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard and articles thereof 0.6 0.5 0.6 0.6 
 48. Paper and paperboard; articles  of paper pulp, of paper or of 
paperboard 0.5 0.4 0.5 0.5 
11 - Textiles and textile articles 2.7 3.0 3.3 3.8 
 61. Articles of apparel and clothing accesso ries, knitted or crocheted. 1.0 1.1 1.2 1.5 
 62. Articles of apparel and clothing accessories, not knitted or 
crocheted. 0.9 1.1 1.2 1.2 
 63. Other made up textile articles. 0.2 0.3 0.3 0.6 
 52. Cotton. 0.2 0.2 0.2 0.2 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; 
artificial flowers 0.7 0.8 0.9 1.1 
 64. Footwear, gaiters and the like; parts of such articles. 0.7 0.8 0.9 1.0 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass and 
glassware 0.7 0.6 0.6 0.6 
 70. Glass and glassware 0.6 0.5 0.4 0.3 
14 - Natural or cultured pearls, precious or semi-precious stones, 
precious metals 12.2 10.5 7.8 5.8 
15 - Base metals and articles of base metal 7.1 7.1 7.0 6.2 
 72. Iron and steel 2.3 2.1 1.8 2.1 
 73. Articles of iron or steel 2.3 2.5 2.1 1.7 
 74. Copper and articles thereof 0.9 0.9 0.9 0.8 
 76. Aluminium and articles thereof 0.6 0.5 0.4 0.5 
16 - Machinery and mechanical appliances; electrical equipment; 
television image and sound recorders 45.5 44.6 48.0 49.3 
 85. Electrical machinery and equipment; sound recorders and 
reproducers 26.2 26.6 31.3 31.7 
 84. Nuclear reactors, boilers, machinery and mechanical appliances 19.2 18.0 16.7 17.6 
17 - Vehicles, aircraft, vessels and associated transport equipment 6.1 6.1 6.8 6.0 WT/TPR/S/338 • United Arab Emirates 
 
- 99 - 
 
  Description 2011  2012 2013 2014  
 87. Vehicles other than railway or tramway rolling-stock, parts and 
accessories. 5.5 5.4 6.2 5.4 
 88. Aircraft, spacecraft, and parts thereof 0.5 0.7 0.6 0.6 
18 - Optical, photographic, precision, medical or surgical instruments; 
clocks and watched; musical instruments 3.1 3.2 2.7 2.8 
 90. Optical, photographic, cinematographic, measuring, precision, 
medical or surgical instruments and apparatus. 2.3 2.4 1.9 1.9 
 91. Clocks and watches and parts thereof 0.8 0.8 0.8 0.8 
19 - Arms ans ammunition 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles 1.4 1.3 1.1 1.4 
 95. Toys, games and sports requisites; parts and accessories thereof. 0.7 0.7 0.5 0.6 
21 - Works of art, collectors' pieces and antiques 0.0 0.1 0.1 0.0 
Others 0.0 0.0 0.0 0.0 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
- 100 - 
 
  Table A1.5 Non-oil direct exports and re-exports by trading partner, 2011-14 
(US$ million and %) 
Description 2011  2012  2013 2014  
Total 88,433  105,705  103,540 102,334  
 (% of exports and re-exports) 
  America 3.0 1.6 2.3 2.5 
    United States 1.2 1.3 1.9 2.0 
    Other America 1.7 0.3 0.3 0.4 
      Canada 0.9 0.1 0.1 0.1 
      Brazil 0.6 0.0 0.1 0.1 
  Europe 12.8 25.9 17.4 17.8 
    EU(28) 5.9 6.6 8.8 10.2 
      Belgium 2.9 3.3 3.8 4.3 
      United Kingdom 0.8 1.4 2.6 2.4 
      The Netherlands 0.3 0.5 0.8 1.2 
      Italy 0.6 0.4 0.4 0.7 
      Germany 0.5 0.4 0.6 0.7 
    EFTA 5.5 16.3 3.3 4.8 
      Switzerland 5.5 16.2 3.3 4.5 
    Other Europe 1.4 3.1 5.2 2.8 
      Turkey 1.3 3.1 5.2 2.7 
  Commonwealth of Independent States (CIS)a 1.6 1.5 1.5 2.2 
      Russian Federation 0.4 0.3 0.3 0.7 
      Turkmenistan 0.3 0.4 0.4 0.4 
      Azerbaijan 0.2 0.3 0.2 0.3 
  Africa 8.6 8.4 8.9 10.8 
      Egypt 0.7 0.7 1.4 1.7 
      Angola 0.6 0.9 0.6 1.2 
      Libyan Arab Jamahiriya 0.3 1.1 1.0 0.9 
      Nigeria 0.4 0.4 0.5 0.7 
      Kenya 0.6 0.5 0.5 0.6 
      Ethiopia 0.9 0.4 0.2 0.6 
      United Republic of Tanzania 0.7 0.5 0.5 0.5 
      Sudan 0.5 0.4 0.4 0.5 
      Algeria 0.4 0.4 0.4 0.5 
  Middle East 16.0 18.1 22.2 26.2 
      Iraq 3.7 3.1 3.4 6.5 
      Saudi Arabia 3.6 3.9 5.5 5.5 
      Oman 1.3 4.0 4.8 5.2 
      Kuwait 2.5 2.0 2.6 2.9 
      Qatar 1.8 2.0 2.3 2.6 
      Bahrain 1.7 1.7 1.8 1.6 
      Lebanon 0.6 0.5 0.7 0.8 
  Asia 55.5 41.1 42.7 36.7 
    China 0.8 1.9 1.7 2.4 
    Japan 0.2 0.3 0.4 0.6 
    Other Asia 54.6 38.9 40.6 33.7 
      Hong Kong, China 18.8 14.1 15.9 14.6 
      India 27.4 17.6 15.8 10.9 WT/TPR/S/338 • United Arab Emirates 
 
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  Description 2011  2012  2013 2014  
      Afghanistan 1.9 1.7 2.1 1.8 
      Singapore 1.5 1.7 2.6 1.3 
      Pakistan 0.9 0.7 0.6 0.7 
  Other 2.6 3.4 5.0 3.9 
      Free Zones 0.0 0.0 4.9 3.8 
      Areas n.e.s 2.6 3.4 0.1 0.1 
a Commonwealth of Indpendent States (CIS) includ es, Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
 Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  Table A1.6 Non-oil direct imports by trading partner, 2011-14 
(US$ million and %) 
Description 2011  2012  2013 2014  
Total 164,071  181,699  186,476 189,567  
 (% of imports) 
  America 11.9 13.5 13.8 13.4 
    United States 8.9 10.2 10.4 10.2 
    Other America 3.0 3.3 3.4 3.3 
      Brazil 1.0 1.0 0.9 1.1 
      Canada 0.9 0.8 0.9 0.9 
      Mexico 0.3 0.4 0.5 0.5 
      Suriname 0.5 0.6 0.5 0.3 
  Europe 22.4 26.2 28.0 25.6 
    EU(28) 18.3 18.4 20.6 20.2 
      Germany 5.1 5.5 5.5 6.1 
      United Kingdom 3.6 3.1 5.4 3.5 
      Italy 3.3 3.5 2.9 3.1 
      Belgium 1.8 1.7 2.1 2.4 
      Spain 0.9 0.9 0.9 1.0 
    EFTA 2.7 3.0 5.1 3.5 
      Switzerland 2.5 2.8 4.9 3.4 
      Norway 0.1 0.1 0.2 0.1 
    Other Europe 1.5 4.9 2.4 1.9 
      Turkey 1.5 4.9 2.3 1.9 
  Commonwealth of Independent States (CIS)a 0.8 0.7 1.4 1.4 
      Russian Federation 0.5 0.5 1.0 1.1 
      Ukraine 0.2 0.2 0.2 0.2 
  Africa 7.8 8.9 8.6 9.0 
      Mali 0.3 0.8 1.2 1.3 
      Sudan 1.2 1.8 1.0 1.0 
      South Africa 0.6 0.5 0.7 0.9 
      Ghana 0.8 1.1 1.0 0.7 
      United Republic of Tanzania 0.6 0.7 0.6 0.5 
      Congo 0.1 0.2 0.4 0.5 
      Zambia 0.7 0.6 0.6 0.5 
  Middle East 6.0 6.6 5.5 5.3 
      Saudi Arabia 2.5 2.2 2.2 2.1 
      Oman 0.7 0.7 1.1 0.9 
      Iraq 0.8 1.8 0.4 0.5 
      Kuwait 0.5 0.5 0.6 0.5 
      Qatar 0.3 0.4 0.4 0.4 
      Bahrain 0.5 0.4 0.3 0.4 
  Asia 49.8 42.9 41.3 43.7 
    China 9.1 8.8 9.4 11.7 
    Japan 5.0 5.3 5.1 5.6 
    Other Asia 35.7 28.8 26.8 26.5 
      India 17.4 11.3 10.7 9.2 
      Korea, Rep. of 3.8 3.7 2.4 2.9 WT/TPR/S/338 • United Arab Emirates 
 
- 103 - 
 
  Description 2011  2012  2013 2014  
      French Polynesia 2.7 2.2 2.2 2.5 
      Hong Kong, China 1.8 2.0 2.0 2.1 
      Malaysia 2.2 1.9 1.9 1.8 
      Thailand 1.5 1.3 1.6 1.5 
  Other 1.4 1.2 1.4 1.6 
      Free Zones 0.0 0.0 1.3 1.5 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
- 104 - 
 
  Table A1.7 Non-oil free zones exports and re-exports by trading partner, 2011-14 
(US$ million and %) 
Description 2011  2012  2013 2014  
Total 39,800  53,744  63,032 64,703  
 (% of exports and re-exports) 
  America 3.1  2.2 2.0 2.2  
    United States 2.4 1.6 1.4 1.6 
    Other America 0.7  0.6 0.6 0.6  
      Brazil 0.2 0.1 0.1 0.1 
      Argentina 0.0  0.0 0.0 0.1  
      Mexico 0.1 0.1 0.1 0.1 
  Europe 6.5  6.7 6.9 7.3  
    EU(28) 3.7 4.1 4.5 5.1 
      United Kingdom 1.0  0.8 1.5 1.7  
      The Netherlands 0.8 0.6 0.6 1.0 
      Belgium 0.1  0.8 0.6 0.6  
      Germany 0.6 0.6 0.5 0.6 
      France 0.2  0.2 0.2 0.2  
    EFTA 2.0 1.6 1.4 1.5 
      Switzerland 2.0  1.6 1.4 1.5  
    Other Europe 0.8 1.0 1.0 0.7 
      Turkey 0.8  1.0 1.0 0.6  
  Commonwealth of Independent States (CIS)a 3.3 2.9 2.5 2.3 
      Azerbaijan 0.5  0.6 0.5 0.5  
      Russian Federation 0.4 0.3 0.5 0.4 
      Turkmenistan 0.6  0.7 0.4 0.3  
      Uzbekistan 0.3 0.3 0.3 0.3 
  Africa 11.1  13.1 13.0 13.1  
      Egypt 3.1 2.7 2.5 3.0 
      Nigeria 1.0  1.0 1.2 1.1  
      Libyan Arab Jamahiriya 0.5 2.2 1.8 1.1 
      Kenya 1.0  1.3 0.9 0.9  
      South Africa 0.8 0.7 0.9 0.8 
      Angola 0.0  0.4 0.4 0.7  
      United Republic of Tanzania 0.8 0.7 0.9 0.7 
      Algeria 0.0  0.5 0.5 0.6  
  Middle East 47.6 48.8 49.2 48.0 
      Saudi Arabia 17.1  16.0 16.9 15.6  
      Iraq 15.3 11.3 9.9 10.1 
      Iran Islamic Rep. 0.8  7.7 8.9 8.6  
      Kuwait 4.5 4.0 3.4 3.8 
      Qatar 2.8  2.4 2.7 2.7  
      Lebanon 2.4 2.0 1.7 1.7 
      Jordan 1.5  1.5 1.7 1.5  
  Asia 22.7 19.4 15.7 12.3 
    China 0.4  0.4 0.4 0.6  
    Japan 0.2 0.1 0.1 0.1 
    Other Asia 22.0  18.8 15.2 11.6  
      India 12.2 8.8 4.5 2.8 WT/TPR/S/338 • United Arab Emirates 
 
- 105 - 
 
  Description 2011  2012  2013 2014  
      Hong Kong, China 3.6  3.2 4.6 2.4  
      Pakistan 2.7 2.3 2.1 2.0 
      Afghanistan 0.1  1.5 1.1 1.4  
      Singapore 1.5 1.4 1.1 0.8 
  Other 5.6  7.0 10.7 14.8  
      Free Zones 5.6 7.0 10.7 14.8 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
 Source: WTO Secretariat estimates, based on data provided by the UAE authorities. 
 WT/TPR/S/338 • United Arab Emirates 
 
- 106 - 
 
  Table A1.8 Non-oil free zones imports by trading partner, 2011-14 
(US$ million and %) 
Description 2011  2012  2013 2014  
Total 60,284  68,696  76,736 80,436  
 (% of imports) 
  America 11.5 10.5 11.7 9.0 
    United States 7.8 7.3 7.3 5.9 
    Other America 3.7 3.2 4.4 3.1 
      Brazil 1.6 1.3 1.4 1.5 
      Mexico 1.1 1.1 1.5 0.8 
      Canada 0.5 0.5 1.2 0.5 
  Europe 22.3 19.4 19.2 18.4 
    EU(28) 19.3 16.9 16.3 15.7 
      Germany 3.0 3.0 2.9 3.1 
      United Kingdom 3.5 2.6 3.6 3.1 
      France 2.5 2.7 2.6 2.4 
      Italy 2.0 2.0 2.1 1.8 
      The Netherlands 0.8 0.6 0.7 0.7 
    EFTA 2.3 1.4 2.1 1.6 
      Switzerland 2.1 1.2 1.8 1.5 
    Other Europe 0.7 1.1 0.9 1.0 
      Turkey 0.7 1.0 0.8 1.0 
  Commonwealth of Independent States (CIS)a 1.6 1.2 2.5 1.2 
      Russian Federation 0.9 0.5 1.5 0.7 
      Ukraine 0.3 0.4 0.4 0.2 
      Turkmenistan 0.0 0.1 0.1 0.1 
  Africa 2.6 2.7 3.6 3.0 
      South Africa 0.6 0.4 0.6 0.6 
      Angola 0.0 0.8 0.7 0.6 
      Egypt 0.2 0.1 0.2 0.5 
      Zambia 0.6 0.6 0.7 0.3 
      D.R. Congo 0.3 0.1 0.1 0.3 
  Middle East 4.2 6.6 4.8 4.1 
      Saudi Arabia 1.5 1.3 1.5 1.1 
      Qatar 0.2 0.4 0.3 0.9 
      Kuwait 0.7 0.4 0.4 0.8 
      Iran Islamic Rep. 0.9 3.3 1.8 0.4 
      Bahrain 0.0 0.2 0.3 0.4 
  Asia 54.9 54.6 57.0 59.5 
    China 23.6 23.2 24.3 28.4 
    Japan 6.4 5.9 5.9 4.3 
    Other Asia 24.9 25.6 26.7 26.8 
      Viet Nam 1.4 4.3 8.1 7.6 
      India 9.4 7.3 6.2 5.8 
      Korea, Rep. of 4.9 4.5 4.6 5.4 
      Malaysia 3.4 3.0 2.1 1.8 
      Thailand 1.7 1.9 1.7 1.6 
      Chinese Taipei 1.2 1.5 1.2 1.0 
  Other 2.9 5.1 1.2 4.9 
      Free Zones 2.9 5.1 1.2 4.9 
 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
 Source: WTO Secretariat estimates, based on data provided by the UAE authorities. WT/TPR/S/338 • United Arab Emirates 
 
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  Table A4.1 Status of ASAs with other countries 
 Open Skies Other Agreements 
1. Afghanistan Algeria 
2. Albania Argentina 
3. Azerbaijan Armenia 
4. Barbados Australia 
5. Benin Austria  
6. Bosnia and Herzegovina Bahamas 
7. Botswana Bangladesh 
8. Brunei Belarus 
9. Burkina Faso Belgium 
10. Burundi Brazil 
11. Cambodia Bulgaria 
12. Cameroon Canada 
13. Cape Verde China 
14. Central African Republic Colombia 
15. Chad Cote d'Ivoire 
16. Chile Croatia 
17. Comoros Cuba 
18. Congo-Rep. of the Congo Egypt 
19 Costa Rica France 
20. Curaçao Germany 
21. Cyprus Ghana 
22. Czech Republic Hong Kong 
23. Damascus Agreement Hungary 
24. Denmark India 
25. Djibouti Indonesia 
26. Dominican Republic Iraq 
27. Ecuador Ireland 
28. El Salvador Italy  
29. Eritrea Japan 
30. Estonia Jordan 
31. Finland Kazakhstan  
32. Gabon Kenya  
33. Gambia Kuwait 
34. Georgia Libya  
35. Greece Macau 
36. Guatemala Madagascar 
37. Guinea-Equatorial Guinea Malta 
38. Guinea-Rep. of Guinea-Bissau Mexico 
39. Guinea-Rep of Guinea Conakry Moldova 
40. Guyana Mongolia 
41. Iceland Montenegro 
42. Jamaica Morocco 
43. Kosovo Mozambique 
44. Kyrgyz Republic Nepal 
45. Lao Netherlands 
46. Latvia Nigeria 
47. Lebanon Pakistan 
48. Liberia Philippines 
49. Lithuania Poland 
50. Luxembourg Portugal 
51. Macedonia Qatar 
52. Malaysia Romania 
53. Maldives Russia 
54. Mali Saudi Arabia 
55. Mauritania Seychelles 
56. Myanmar Slovenia 
57. Namibia South Africa 
58. New Zealand South Korea WT/TPR/S/338 • United Arab Emirates 
 
- 108 - 
 
   Open Skies Other Agreements 
59. Nicaragua Spain 
60. Niger Sri Lanka 
61. North Korea Switzerland 
62. Norway Syria 
63. Oman Tanzania 
64. Panama Tunisia 
65. Paraguay Turkey 
66. Peru U.K. 
67. Rwanda Ukraine 
68. Senegal Uzbekistan 
69. Serbia Venezuela 
70. Sierra Leone Viet Nam 
71. Singapore  
72. Saint Maarten  
73. Slovak Republic  
74. Somalia  
75. South Sudan  
76. Sudan  
77. Swaziland  
78. Sweden  
79. Thailand  
80. Togo  
81. Turkmenistan   
82. Uganda  
83. Uruguay  
84. USA  
85. Vanuatu  
86. Yemen  
87. Zambia  
88. Zimbabwe  
 88 70 
Source: Information provided by the UAE authorities. 
 
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