WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/262 
21 February 2012  
 
(12-0859) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
UNITED ARAB EMIRATES 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by the United Arab Emirates is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Revi ew Body on the United Arab Emirates. United Arab Emirates WT/TPR/G/262 
 Page 3 
 
 
CONTENTS 
 
 Page 
I.  ECONOMIC DEVELOPMENT 5  
 (1)   ECONOMIC GROWTH  5  
 (2)   EXTERNAL TRADE PERFORMANCE AND OUTWARD INVESTMENT  6  
 (3)   INWARD INVESTMENT  7  
 (4)   POPULATION AND EMPLOYMENT  7  
 (5)   FISCAL POLICY  8  
 (6)   MONETARY POLICY  8  
II.  TRADE POLICY DEVELOPMENTS 8  
 (1)   BILATERAL AGREEMENTS  8  
 (2)   REGIONAL AGREEMENTS  9  
 (i)   Gulf Cooperation Council (GCC) 9  
 (ii)   Greater Arab Free Trade Area (GAFTA) 9  
 (3)   UAE  PRIORITIES IN THE DOHA DEVELOPMENT AGENDA (DDA) 10  
III.  SECTORAL DEVELOPMENTS 10  
 (1)   MANUFACTURING  10  
 (2)   TELECOMMUNICATION  11  
 (3)   TOURISM  11  
 ) 4(  BANKING AND INSURANCE  12  
 (5)   AIR AND MARITIME TRANSPORTATION  13  
 (6)   PETROCHEMICALS AND FERTILIZERS  13  
 (7)   NUCLEAR AND RENEWABLE ENERGY  14  
IV.  FUTURE DIRECTION 14  
 (1)   REFORM OF THE INVESTMENT FRAMEWORK  15  
 (2)   KNOWLEDGE ECONOMY  15  
 (3)   COMPETITION  15  
 (4)   E-GOVERNMENT  16  
 (5)   LABOUR MARKET AND EMIRATIZATION POLICY  16  
 (6)   WATER   17 
 (7)   BETTER SYNERGY BETWEEN MULTILATERALISM AND BILATERALISM  17  
ANNEX:  THE UAE’S NEEDS IN TRADE-RELATED TECHNICAL ASSISTANCE 18  
  United Arab Emirates WT/TPR/G/262 
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I. ECONOMIC DEVELOPMENT 
1. Successive developments in the economy of the United Arab Emirates, and the adoption of 
free market policies and regulations, have led to  impressive growth rates and a trend towards 
sustainable and diversified development. 
2. The UAE Government has successfully pursued a strategy to create an enabling business 
environment that is conducive to  economic growth.  This has contributed to the world-renowned 
status of the UAE as an international centre for tr ade, finance and services and has attracted reputable 
global companies.  The UAE has always focused on strengthening its stance as a hub for business. Hence, it demonstrates an exemplary model to be emulated in all patterns of economic development 
and modernization. 
3. The United Arab Emirates continues to pay atte ntion to the foreign trade sector, which is 
perceived as the cornerstone of any economy.  In r ecognition of the importance of this sector to the 
country’s economic development, the UAE created th e Ministry of Foreign Trade under law no. 10 of 
2008, assigning it the responsibility of developing a nd implementing the country’s trade policy in 
coordination with other ministries, federal and local bodies.  Indeed, the UAE adopts a trade policy 
marked by openness and harmony with international markets, including the member states of the 
World Trade Organization.  The UAE’s economic strategy is centred on building a flexible, diverse, competitive and sustainable economy that makes use of the lessons learnt from the impact of the 
global financial crisis.  The UAE was able to overcome the repercussions of this crisis in record time, 
which contributed to developing its economy and prom oting its forecasted role in the future global 
economic arena. 
4. The Ministry of Economy and the Ministry of Foreign Trade are currently pursuing the 
Government’s progressive economic agenda, focused  around economic liberalization, diversification 
and promotion of the role of the private sector. 
(1) E
CONOMIC GROWTH  
5. Economic growth in the UAE has witnessed a su bstantial increase over the last few years. 
Gross Domestic Product at current prices has risen from USD 222.1 billion in 2006, to 
USD 314.6 billion in 2008 and USD 297.5 billion in 2010.  The GDP trend is likely to have accelerated in 2010 due to the increase in the average oil price and the strong expansion in the non-oil 
economy.  Specifically, the fall in the price of  oil in 2009 from its peak in mid-2008 reduced 
hydrocarbon revenues by 32% to USD 69.9 billion, wh ich led to the decline in the UAE’s GDP in 
2009 compared to 2008.  This decline was also aided by the fall in real estate prices and the slowdown 
in global trade. 
6. Despite the economic crisis, which is still cas ting its shadows on most economies worldwide, 
the UAE economy has been gradually recovering as refl ected in its 2010 growth rate, with a real GDP 
of 1.4% compared to a negative 1.6% in 2009, i.e., realizing a USD 266 billion real GDP in 2010 
compared to USD 262.2 billion in 2009 at constant  2007 prices.  This growth has been propelled 
mainly by higher growth achieved by non-oil sectors,  which registered a 5% growth rate in 2010 
compared to 2009. 
7. The Government emphasizes con tinued diversification away from dependence on oil and gas 
to non-oil industries.  This is ev idenced by the fact that the oil sect or contributed around 31.5% of the 
country’s GDP in 2010 (31.4% in real GDP), w ith the rest accounted for by the non-oil sector, 
compared to 37.4% in 2006.  The services sector is  another policy focus; the growth of services will 
contribute to increased diversification and broad-based growth. WT/TPR/G/262 Trade Policy Review 
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8. Regarding the relative importance of economic activities, 2010 has not witnessed a 
considerable change in comparison with the y ear before.  Commodity activities groups witnessed a 
limited decline in 2010 to 56.3% from 57.5% in 2009.  This decline is attributed to the relatively small 
decline in the oil sector from 33.7% in 2009 to 31.4% in 2010.  However, a number of other 
commodity activities groups, such as construction, manufacturing, electricity, water and gas witnessed 
an increase in 2010 in their contributions to the GDP, by 11.8%, 9.6%, and 2.6% respectively compared to 11.0%, 11.0% and 2.3% in 2009.  Fo r their part, the services activities groups increased 
their contribution to the GDP in 2010 to 43.7%, up from 42.5% in 2009.  Excluding the financial projects, the contributions of other services activiti es to the GDP grew in 2010 in comparison with 
2009, while the share of the Government service se ctor and the household services activities sector 
remained the same in terms of their contribution to GDP in 2010 in comparison with 2009. 
(2) E
XTERNAL TRADE PERFORMANCE AND OUTWARD INVESTMENT  
9. The UAE is a trading nation, as witnessed by its high ratio of imports plus exports (of goods 
and services) to GDP (around 147% in 2010).  The UAE is also an important participant in global 
capital markets through several inv estment institutions, including, inter alia,  the Abu Dhabi 
Investment Authority, the Dubai Ports Authorit y, Dubai Holding, Dana Gas, and Abu Dhabi’s 
International Petroleum Investment Co. (IPIC). 
10. The growth rate of the UAE’s non-oil foreign trade has been steady fo r the last ten years 
except in 2009 when global trade dropped by 13% due to economic turmoil.  However, 2010 saw a 
strong come-back when the UAE’s total foreign trade increased by 14%, from USD 179.8 in 2009 
billion to USD 205.42 billion.1  The continuing growth in foreign trade reflects the country’s strong 
commitment, through its free trade policies, advan ced logistics and encouraging innovative projects to 
preserve its strong standing in the global trade market.  The UAE’s foreign trade volume increased 
from 2005 until 2010 with an average growth rate of 19% as a result of an increase in exports (non-oil 
exports and re-exports).  The shar e of total exports (non-oil exports  + re-exports) amounted to 35.7% 
of the country’s total foreign trade in 2010. 
11. The country’s non-oil exports share has increased from 5% in 2000 to 11% in 2010.  This 
increase is not only attributed to the growth of the exports value but also to the changes that occurred 
to the other components of foreign trade; imports  and re-exports.  In 2010, the value of the UAE’s 
exports reached USD 22.6 billion, a 27% increase from  its level in 2009, which is still lower than the 
30.7% average annual growth rate recorded since 2001.  UAE exports penetrated 198 markets around 
the globe in 2010.  However, more than 77% (USD 17.32 billion) of it were concentrated in 12 major 
markets.  These twelve markets have been playin g a significant role in the development of UAE 
exports.  In fact, 92% of the growth witnessed in UAE  exports in 2010 is attributed to the growth of 
exports in these markets, of which India and Switzerland are the largest destinations. 
12. The re-export sector, the second most important component in the UAE’s foreign trade with a 
share of 25% in 2010, reached a value of USD 50.54 b illion during the same year.  This steady growth 
is a result of the Government’s ongoing support to this vital sector through a variety of different 
initiatives.  The ease of customs procedures, lo w administrative import and export costs and the 
country’s advanced seaport and airport infrastruct ure and facilities, have all reflected the high 
competitiveness that the UAE enjoys.  Today, the UAE is a major global re-e xport hub, ranking first 
among Arab countries and the sixth globally.  The gr owth rate of this sector has been fluctuating 
especially in the last five years, where it grew by 94.5% in 2010 in comparison with 2006. 
                                                      
1 The UAE Foreign Trade Analytical Report 2010, Ministry of Foreign Trade. United Arab Emirates WT/TPR/G/262 
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13. The UAE’s imports make up to 64% of the count ry’s total non-oil foreign trade.  The high 
percentage is mainly due to the high demand of an  expanding population and to the important role the 
country plays as a major re-exporter in the region .  In 2010, imports increased by 8%, reaching 
USD 131.9 billion, up from USD 121.5 billion in 2009. 
14. 2010 statistical data of major commodities, by value, has revealed that with regards to 
imports, gold took the lead among all imported commodities with a value of USD 18.0 billion; 
followed by diamonds at USD 13.1 billion;  cars at USD 7.3 billion; ornaments and jewellery at USD 6.1 billion; in addition to telephone sets at USD 2. 8 billion.  Moreover, gold also took the lead of 
exported commodities in 2010 at USD 10.4 billion; follo wed by light-vessels, fire floats, dredgers or 
ice class barges at USD 1.5 billion; waste and scrap of precious metals or ordinary metals at USD 1.0 billion; sugar cane or sugar beet at USD 0. 7 billion and finally Ethylene Polymers in primary 
forms at USD 0.6 billion.  Regarding re-exports, diamonds topped the list of re-exported commodities 
in 2010 with a total value of USD 15.2 billion, follo wed by ornaments, jewellery and parts thereof at 
USD 3.5 billion, motor vehicles USD 3.2 billion and telephone sets USD 2.3 billion. 
(3) I
NWARD INVESTMENT  
15. The UAE strongly believes that the private sector (b oth local and foreign) is the true engine of 
growth in the long run.  Foreign direct investment (FDI) is regarded as crucial in order to transfer 
knowledge and expertise in areas that are not yet th e country’s core competencies, open new market 
opportunities through the creation of new networks and create employment in  knowledge intensive 
and high value-added sectors. 
16. Following the success of the Jebel Ali Free Zone, the UAE currently boasts over 32 Free 
Zones.  Most of these zones are located in Dubai,  though the other Emirates are emulating the lead. 
Some of the zones cater to service sectors (e.g. Du bai Internet City, Dubai Media City, Dubai Health 
Care City, Knowledge City, Dubai International Financial Center) wh ile others are industrial zones 
(e.g. ZonesCorp, Hamriyah Free Zone, Ajman Free  Zone and Ras Al Khaimah Free Trade Zone). 
17. The underlying formula for success in these z ones has been; 100% foreign ownership, 
corporate tax holidays, no personal taxes, freedom to repatriate capital a nd profits, and no import 
duties or currency restrictions. 
18. Outside the Free Zones, the formula is somewh at similar; corporate tax holidays for most 
sectors, no personal taxes, freedom to repatriate capital and profits, and no currency restrictions, 
except for the foreign ownership requirement, which is generally set at a ceiling of 49%, though that 
is changing with the proposed amendment of the federal law on commercial companies. 
(4) POPULATION AND EMPLOYMENT  
19. The population of the UAE is on the rise.  Over the last few years, estimates based on 
administrative records have rev ealed that the country’s population has risen to approximately 
8.26 million in 2010 from 6.22 million in 2006, regist ering a 0.78% growth rate for that period. 
20. In 2010, expatriates constituted the major ity of the UAE’s population (around 88.5%). 
Unemployment did not exceed 4.3%.  In 2010 almo st 65.2% of the population were economically 
active workers (based on 1995 and 2005 Survey). WT/TPR/G/262 Trade Policy Review 
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(5) FISCAL POLICY  
21. The Fiscal policy of the UAE at both the federal and Emirates level remains prudent. 
Substantial progress has been made in implemen ting fiscal management reform.  The UAE economy 
started to recover in 2010 be nefiting from higher oil prices and a strong demand from traditional 
trading partners. 
22. Total public revenue has increased from USD 68.1 billion in 2009 to USD 85.7 billion in 
2010 and is estimated to be USD 121.8 billion in 2011.  This is primarily due to the increase in oil and 
gas earnings. 
23. While public earning has increased in 2009, public  expenditure and grants have decreased 
from USD 102.2 billion in 2009 to USD 89.6 billion in 2010.  It is estimated to be around 
USD 99.5 billion in 2011.  As a result of the prude nt management of public revenue, the public deficit 
has declined from 12.9% of the GDP in 2009 to about 1.3% of the GDP in 2010. 
(6) MONETARY POLICY  
24. In light of state-driven efforts for a stable  and a better investment climate, encouraging 
investment-attractive environments, the investme nt flow witnessed a significant increase as it moved 
up from USD 70.2 billion in 2009 to USD 76.3 b illion in 2010, with a growth rate 8.8%.2 
25. Given the fixed peg of the AED against the U.S. dollar and the full and free flow of capital, 
the effectiveness of monetary policy in the UAE is limited.  Local interest rates follow the interest 
rates on the dollar.  Therefore, the Central Bank o ffered banks the opportunity to better manage their 
liquidity through investment in the Central Ba nk’s Certificates of Deposits, which reached 
USD 19.6 billion at the end of 2009, USD 25.6 billion at the end of 2010 and USD 21.8 billion at the 
end of October 2011. 
II. TRADE POLICY DEVELOPMENTS 
26. The UAE believes that free trade is a neces sary condition for increased competitiveness and 
productivity in the long run.  Protectionism, in the fo rm of high tariff barriers and technical barriers to 
trade, would only result in a stagnant and inefficient pr ivate sector.  It is in this spirit that the UAE has 
signed several free trade agreements with some Arab Countries and embarked on negotiations, under 
the GCC umbrella, to establish free trade agreements  with the main trade partners of the GCC. 
(1) BILATERAL AGREEMENTS  
27. The UAE has signed bilateral preferential agreements with some Arab Countries (Syria, 
Jordan, Lebanon, Morocco and Iraq).  According to these agreements, the UAE and its partners 
accord each other preferential access for a specified list of goods.  As of the end of May 2011, the 
UAE had signed 39 bilateral investment agreemen ts and 58 treaties on avoidance of double taxation. 
The UAE is a member of the Mu ltilateral Investment Guarantee Agency (MIGA).  The UAE has 
bilateral economic agreements with 50 countries. 
                                                      
2 Annual Economic Report 2011, Ministry of Economy. United Arab Emirates WT/TPR/G/262 
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(2) REGIONAL AGREEMENTS  
(i) Gulf Cooperation Council (GCC) 
28. The UAE was a founding member of the GCC on the 25th of May, 1981, alongside Bahrain, 
Kuwait, Oman, Qatar, and Saudi Arabia. 
29. The Unified Economic Agreement (UEA), signed on the 11th of November 1981 under the 
Gulf Cooperation Council (GCC) created a Free Trade Area between the GCC states compatible with Article XXIV of GATT Agreement 1994.  The fr ee-trade area had eliminated duties and other 
restrictive regulations of commerce on all trade between the members of the GCC in the products 
originating in the member states, and work was proceeding to further harmonize trade and commercial 
policies. 
30. In December 2001, the GCC Economic Agreement was signed to provide for a GCC Customs 
Union, and the harmonization of economic, financial,  and monetary policies, with a view to achieve 
more economic integration through the establishmen t of the Gulf Common Market (GCM), which 
went into effect on January 2008. 
31. The GCC Customs Union was established and has been operative since the beginning of 
January 2003.  GCC member states have been appl ying the GCC common tariff ever since.  The rates 
for more than 89.1% of the common tariff lines we re 5%, while 10.4% of the tariff lines had a 
common tariff of 0%.  Moreover, 0.2% of the tariff  lines had a rate of 50%, while the remaining 0.3% 
of the tariff lines had a rate of 100%. 
32. On the liberalization of services within the GCC,  the Council had liberalized trade in services 
for roughly 100 sub-sectors of services, including professional services, most business services, 
telecommunication services, banking and other fina ncial services, distribution services, education 
services, environmental services, health and related social services and tourism services.  The GCC members had agreed to progressively liberalize other services sectors and sub-sectors. 
33. The UAE is currently participating in the ongoi ng negotiations between the GCC and its main 
trade partners.  These negotiations have led to  signing Free Trade Agreements between the GCC 
members and Singapore, the EFTA States, and an initial signing of a draft Agreement with New 
Zealand.  The negotiations to conclude a Free Tr ade Agreement between th e GCC and the European 
Union (EU), Turkey, Japan, South Korea, China, India, Pakistan, Australia, and the Southern 
Common Market (MERCOSUR) are still open.  The sc ope of these negotiations covers market access 
for goods and services, intellectual property, and in some cases, government procurement, investment 
and competition. 
(ii) Greater Arab Free Trade Area (GAFTA) 
34. The UAE is a member of The Greater Arab Free Trade Area (GAFTA), which was signed on 
the 19
th of February 1997 and was entered into force on the 1st of January 1998.  This agreement has 
eliminated all tariffs among its members on the 1st of January 2005.  The Agreement covers trade in 
goods only, however, members have been engaged for the past few years in negotiations to create an 
agreement in trade in services. WT/TPR/G/262 Trade Policy Review 
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(3) UAE  PRIORITIES IN THE DOHA DEVELOPMENT AGENDA (DDA) 
35. The UAE is a strong believer and advocate of th e Multilateral Trading System.  It is playing 
an active role in the current round of multilateral tr ade negotiations.  Its main interests in the Doha 
Development Agenda (DDA) include greater non-ag ricultural market acces s (NAMA) and further 
liberalization of trade in services. 
36. In NAMA, the UAE proposed the inclusion of an additional sector under the sectoral tariff 
elimination initiative.3  The UAE has called on Members to eliminate all tariffs on raw materials, in 
particular on primary aluminium, a vital a nd strategic input for its manufacturing sector. 
37. The UAE also submitted its initial offer in services,  which is basically in line with the policy 
objectives set by the Government and its refo rm process that is currently underway.4 
38. The UAE also recognizes the importance of an e ffective and rational “differential and special 
treatment” that enables domestic sectors to benefit from  transitional periods of adjustments in order to 
take necessary steps to consolidate competitiveness.  It is crucial fo r the survival of those sensitive 
activities. 
39. The UAE also supports the strengthening of technical assistance programs for developing and 
least-developed countries in the following areas:  Information on the Multilateral Trading System, 
Implementation of the WTO Agreements, and Capac ity Building.  The specific needs and priorities 
for the UAE are related to the following issues:  Competition Law, SPS & TBT, customs procedures 
and trade facilitation, classification of some servi ces sectors like energy services and maritime 
transport, evaluation of trade in services, notifica tions procedures related to all WTO agreements, and 
regionalism/bilateralism and the multilateral trading system. 
III. SECTORAL DEVELOPMENTS 
40. Diversification away from oil and into industry and services has been high on the 
government's agenda for the last couple of decades.  The UAE’s investment in new economic components, such as in renewable and nuclear energy,  is adding more value to the country’s overall 
economic components.  Below are a few de velopments in some economic sectors. 
(1) M
ANUFACTURING  
41. Manufacturing is one of the largest non-oil economic sectors in the country, contributing 
around 9.7% of the GDP in 2010 and around 14.2% of the entire non-oil economy.  This sector 
includes cement and blocks, ceramics, textiles a nd clothing, pharmaceuticals, gold and jewellery, 
aluminium, plastics, steel and other subsectors.  Growth in manufacturing was a result of both 
increasing demand (due to a rapidly rising po pulation) and increased national and foreign 
investments. 
42. The manufacturing industry continues to play an increasingly important role in the UAE's 
economy, as it is strengthened by the availability of  basic infrastructure and communications within 
the country, buyers of final products (e.g. EU and Arab countries), liquidity and the geographic 
proximity of the UAE to suppliers of raw materials (e.g. India and China). 
                                                      
3 WTO document TN/MA/W/37, 37Add.1  & Add.2. 
4 WTO document TN/S/O/ARE. United Arab Emirates WT/TPR/G/262 
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43. The number of industrial establishments operating in the UAE as of the 31st of December 
2010 was about 4960 with a combined investment volume of around USD 27.6 billion, registering an increase of 316 facilities from 2009.  In comparison, the number of industrial establishments in 2006 was 3567 with an investment volume of USD 17.1 billion. 
(2) T
ELECOMMUNICATION  
44. The telecommunication sector in the UAE is one of  the most advanced in the world.  In the 
past few years, the sector has witnessed rapid growth  in mobile penetration,  which in August 2011 
reached 193.6%.  In addition, internet penetrati on (Broadband + dial-up) reached 23.1% with an 
internet users penetration of 57.6%.  Moreover, broadband internet penetr ation has reached 14.4%, 
one of the highest rates in the Middle East.  Va rious initiatives to accelerate the advancement of the 
telecom sector have been taken by the UAE Government.  Since the Telecommunications Regulatory Authority (TRA) was established by Federal law (Decree No. 3 of 2003) and its Executive Order, 
which initiated the telecom liberalization process, it has been vested with powers to regulate a 
competitively sustainable telecom sector.  In  February 2006, Du (Emirates Integrated 
Telecommunications Company) was awarded a comp rehensive licence to become the UAE's second 
telecom services operator. 
45. The UAE was the first country in the region to  offer fourth generation (4G) mobile data 
services.  To help maintain the country’s leadi ng position, the TRA has established an ICT Fund, 
financed by licensed telecom operators, which will  foster research and development in the UAE 
telecom sector. 
(3) T
OURISM  
46. Tourism is a growing sector in the UAE.  The sector was regulated at the Emirate level until 
the creation of the UAE National Council for Tourism and Antiquities (NCTA) on the 14th of 
December, 2008, when its regulation shifted to th e federal level while maintaining a level of 
cooperation with each emirate’s local authorities. 
47. Over the past decade, tourism has become a co rnerstone of the UAE's plan for a diversified 
economy.  The subsector is an important source of foreign exchange.  The full economic impact of 
tourism, including tourism capital investment and indirect impacts, tallied USD 18.8 billion in 2009. 
Tourism contributed 7.4% of the UAE’s GDP a nd 11.7% of the country’s non-oil GDP in 2009. 
Dubai holds a 66% share of the UAE tourism economy, Abu Dhabi 16%, and Sharjah 10%. 
48. The UAE has been ranked the 30th among 139 countries and the 1st in the Middle East in the 
"Travel '&' Tourism Competitiveness Report 2011", issued by the World Economic Forum under the 
theme "Moving beyond the Downturn". 
49. The UAE has attracted visitors for a multitude of business and leisure purposes. 
Cultural/recreational attractions, shopping and relaxation are popular  activities for visitors.  An 
important focus of tourism development from a ma rketing and product deve lopment perspective has 
been the creation of an impressive range of sporting, cultural and lifestyle events. 
50. The Abu Dhabi Tourism Authority (ADTA), whic h was established in 2004 has set itself a 
target of increasing annual visitor numbers to over 3 million by 2015.  To achieve that, the Emirate 
plans to invest substantially in the development of major tourism and cultural infrastructure over the 
coming twenty years.  ADTA statistics show that th e number of hotel guests and hotel apartment stays 
in Abu Dhabi has risen by 10% during the first four months of 2011, compared to the same period in WT/TPR/G/262 Trade Policy Review 
Page 12 
  
2010.  This was accompanied by an increase of 26% in  the number of hotel nights and an increase in 
occupancy levels, revenue a nd average periods of stay. 
51. In addition to being the commercial hub of th e UAE Dubai invested heavily in tourism to 
become the main tourist attraction in the Middle- East.  It has the world’s tallest building, the 
Burj Khalifa, the world’s biggest mall, the Dubai Mall -which also houses the largest indoor seawater 
aquarium, and the world’s largest collection of man-made islands, and the world’s longest fully-
automated metro.  Dubai hotels recorded a growth of 14% in the number of visitors in the first quarter 
of 2011, compared to the same period in 2010, and achieved an occupancy rate of 81%. 
52. Sharjah, has made huge milestones in developi ng culture related ecotourism.  Sharjah has 
17 museums and cultural centers.  The museums are dedicated towards showcasing the different 
aspects of the country’s past, such as literature, archaeology, natural history and the pearl trade 
tradition. 
53. The emirate of Ras Al Khaimah has an interesting heritage.  The emirate also has a national 
museum, ancient buildings, archaeological sites and an ancient sun-worshippers temple.  Although these sites are not yet tourist-ready, the govern ment of Ras Al Khaimah is seeking serious 
partnerships to restore these sites and turn them into tourist destination. 
54. Ajman, Umm Al-Quwain and Fujairah have been  rapidly growing their tourism sectors with 
strong campaigning to develop the industry and attrac t more tourists.  The major attractions of these 
emirates are heritage, architecture, natural land scapes, leisure, sports, and facilities for business 
conferences and exhibitions. 
(4) BANKING AND INSURANCE  
55. Commercial banks operating in the UAE witnessed  a highly volatile growth during the recent 
years.  Double digit growth rates continued until 2008 when customer deposits increased by 27.4%, 
bank loans by 47.5% and bank assets by 20.4%.  A slowdown followed with the outbreak of the 
international financial crisis.  The immediat e pressure was felt on capital adequacy and the 
profitability of banks, following a pull down of deposits from banks, which created a substantial 
mismatch and a liquidity constraint.  This neces sitated certain liquidity and capital support from the 
Central Bank and the Federal Govern ment.  In 2010, bank deposits increased by 6.8%, bank loans by 
1.4% and bank assets by 5.8%. 
56. In 2011, the UAE had 23 national Banks of which 8 are licensed as Islamic banks and the 
remaining 15 as conventional banks, in  addition to 28 foreign banks.  Local conventional banks’ share 
in total net assets declined from 63.6% at the e nd of 2007 to 62.8% at end of June 2011, while the 
Islamic banks’ share has increased from 14.2% to 16. 5%.  However, the share of Islamic banks in 
capital and net profits recorded a decline, during this  period, due to larger provision for a higher level 
of non-performing advances. 
57. The insurance sector has also grown; a large portion services the hydrocarbon and 
construction industries – sectors that have significant ly developed, over the last few years, and are 
expected to continue to grow.  This asserts the signi ficance of this sector and its substantial role in the 
national economy due to the considerable funds inv ested therein.  The total volume of underwritten 
insurance premiums in the UAE reached USD 6.0 billion in 2010, a 10%increase in comparison with 
2009, while the total value of invested funds in the sector rose to USD 7.5 billion, with 48.2% of this 
amount in the form of shares and bonds followed by  32.5 % as bank deposits.  Given the UAE’s fast 
population growth, the sector’s outlook is very good.  The insurance sector in the UAE is regulated by United Arab Emirates WT/TPR/G/262 
 Page 13 
 
 
Federal Law No. (6) for the year 2007 concerning the creation of the Insurance Authority, which was 
enforced as of the 28th of August 2007. 
(5) AIR AND MARITIME TRANSPORTATION  
58. Passenger and cargo transportation has risen in importance over the last few years.  UAE 
airline companies (Emirates Airlines, Etihad Air lines, Air Arabia Airlines Fly Dubai Airlines and 
RAK Airways) are updating their fleets and are pursuing a forceful strategy to capitalize on the increased passenger demand by pursuing several stra tegies, including the adoption of transportation 
options that focus on superior passenger experien ces as well as options that emphasize affordability. 
59. The UAE's air industry has been continuously grow ing.  In 2011, the UAE had a total of five 
national airports (Abu Dhabi International Airport,  Al Ain Airport, Dubai International Airport, 
Fujairah Airport, Ras Al Khaimah Airport and Shar jah International Airport).  The UAE has plans to 
become a global transport hub by investing around US D 136.1 billion in the aviation industry over the 
next decade.  The UAE intends to capitalize on its  transport and communications infrastructure by 
introducing new aircrafts for the five flag carriers in the UAE, huge investments for new airport capacity throughout the seven emirates, and plans for Abu Dhabi to become a regional centre for 
aircraft maintenance, manufacturing and flight training. 
60. In addition, the UAE has developed as a re gional hub for maritime transportation and 
logistics.  UAE ports handle a large volume to and from the region, and ship and boat building are 
emerging as strategic competencies. 
(6) P
ETROCHEMICALS AND FERTILIZERS  
61. Most of the UAE's oil reserves are located in  Abu Dhabi, which is home to several major 
chemical, petrochemical and fertilizer industrial complexes. 
62. Borouge, a joint venture between Abu Dhab i National Oil Company(ADNOC) and Austria 
based Borealis, has a current manufacturing capacity  of 2 million tons per year.  In mid-2011, the 
second phase of its massive petrochemicals complex at Ruwais industrial zone has enabled it to reach 
full operational capacity.  The company is also pla nning to increase its capacity to reach 2.5 m tons 
per annum by 2013 to meet the increasing local and international demand.  ADNOC has also 
established Ruwais Fertilizer Industries (FERTIL) w ith a capacity of 1,000 tons of ammonia and 
1,500 tons of urea per day.  It signed a USD 1.2 billion contract with Samsung Engineering to 
construct a new fertilizer complex, increasing its urea  capacity to 3,500 tons per day.  Both companies 
are located in Al Ruwais Industrial Zone and ar e looking forward to expand their production capacity 
by installing more plants, increasing utilization,  and depending on new advanced technologies. 
Borouge and FERTIL’s expansion plan s have been attracting local and international investors who are 
been actively participating in the construction of  chemical plants, storages, processing and treating 
units, and other related projects like cooling systems. 
63. Abu Dhabi’s petrochemicals’ strategy has been  shifting from the basic products to end-user 
products.  It has been establishing itself as one of th e major petrochemicals producers in the world.  
Strategic International and local investors have been invited to join the development convoy in 
petrochemicals. 
64. In November 2008, Abu Dhabi National Chemicals Company “Chemaweyaat” was 
established to enhance the involvement of Abu Dhab i’s chemicals industry pr oduction’s holdings.  Its 
plants are planned to be operating by 2015 with  a total capacity of 1.5 million tons per year. WT/TPR/G/262 Trade Policy Review 
Page 14 
  
65. As Abu Dhabi enters its second phase of moderniz ation guided by vision 2030, developing a 
globally-competitive petrochemicals industry based is one of the main economic pillars to achieve the 
desired position.  Not only dose Abu Dhabi invest s heavily in creating petrochemicals conglomerate 
but also it opens its door and provides the nece ssary business infrastructure and environment for 
international investors to establish ventures at all le vels of the industry value chain.  Abu Dhabi Basic 
Industries Company’s (ADBIC) polymer’s park project  is a clear example of  the emirate’s strong 
commitment to attract international players.  A bu Dhabi Polymer Park will span 4.1 million m2 with 
up to 1 million tons/yr conversion capacity of a wide range of resins. 
(7) NUCLEAR AND RENEWABLE ENERGY  
66. The UAE’s investment in new economic compone nts, such as in renewable and nuclear 
energy, adds more added-value to the country’s overall economic components and aids it in reaching 
the goals it set for itself in “UAE Vision 2021”, to “be among the best countries in the world by 
2021”. 
67. The Emirate of Abu Dhabi has put in place a comprehensive energy strategy till the year 
2030.  The strategy aims at diversifying and devel oping the Emirates’ sources of energy to include 
more renewable ones and to secure a healthy environmen t that is in line with the country’s goals.  The 
strategy will reduce the country’s reliance on gas to  produce electricity from around 99% presently, to 
70%.  It also aims at producing 30% of the required energy from clean coal, nuclear and renewable 
energy sources.  Moreover, there is currently a jo int project with the United Nations to reduce carbon 
emissions through the Dubai Carbon Center.  The vast   “Mohammed Bin Rashid” solar park is also 
being constructed in Dubai.  The UAE has ratifie d the Global Climate Treaty, joined the Modified 
Kyoto Protocol, hosted the International Renewa ble Energy Agency (IRENA), and carried out a 
number of projects and initiatives that are related to cl imate preservation.  It h as introduced the use of 
solar power – albeit still limited – in government buildings, and worked on substantially increasing 
the country’s vegetation cover. 
68. The UAE has adopted an ambitious plan that ai ms at increasing the contribution of renewable 
energy so that it would supply 7% of the country’s energy needs by the year 2020.  The Government 
has also launched the MASDAR initiative, which ai ms at advancing alternative energy solutions, 
commercial production and applications.  MASDAR c ity is set to become the first Zero carbon and 
waste emitting city in the world.  Masdar is also considering the ambitious plan of constructing the 
world’s largest solar power tower in Abu Dhabi, which is expected to ge nerate 150-200 Megawatts. 
69. The United Arab Emirates has launched a pea ceful nuclear energy program.  The program 
includes the construction of 4 electrical nuclear po wer plants in cooperation with a South Korean 
Company.  Investments in this program are wort h around USD 20.4 billion.  Work is set to commence 
on the construction of the first nuclear power plant in 2012, with a production capacity of 1400 
megawatts for every station.  The first plant is expected to start supplying the national grid with 
electricity in 2017.  All four plants are set to be completed by the year 2020. 
IV. FUTURE DIRECTION 
70. The UAE has made significant strides in economic development over the last few years.  This 
was primarily due to the UAE government’s provision of  an enabling regulatory environment.  It is 
expected that services will play a larger role in the UAE economy over the medium to long run, with 
rapid increases in niche sectors such as air and mar itime transportation, logistics, medical tourism, 
pharmaceuticals and IT. United Arab Emirates WT/TPR/G/262 
 Page 15 
 
 
71. The vision of the Government of the UAE is to transform the country into a global hub for 
entrepreneurship in several industrial and service sphe res.  To achieve that vision, the Government is 
committed to maintaining laissez faire  policies and an effective public-private partnership. 
72. It is important to shed light on some of th e challenges that have faced the country and the 
government's steps to address them. 
(1) REFORM OF THE INVESTMENT FRAMEWORK  
73. Currently, discussions are underway in the UAE to re-examine the Federal Law on 
Commercial companies that limits foreigners to hold a minority equity in companies incorporated in 
the UAE (the historical cap of 49%).  A Federal Un ified Foreign Investment Law is in the legislative 
level which reflects government policies towards forei gn investments.  This new Law is expected to 
increase the foreign ownership in some sectors to mo re than 49%.  Furthermore, there are several 
business laws that which will enhance the investment  environment in the country such as the new 
Arbitration law that is to be developed in line with the UNCITRAL Arbitration Law. 
74. To some extent, the minimum national ownershi p requirement affected the flow of FDI. 
However, two parameters should be ta ken into consideration to understand this situation.  First of all, 
the demographic structure of the UAE is su ch that nationals constitute the minority vis-à-vis  
foreigners.  Second of all, the UAE is a major cap ital exporter.  Those factors explain the philosophy 
of the current regime i.e. preserving and protec ting the economic interest s of the nationals and 
guaranteeing them a share in their own market. 
75. However, after reaching a certain maturity, and taking into account UAE obligations under 
international trade negotiations, the Government is developing a comprehensive strategy to deal with 
this new juncture.  The main objective is to furthe r diversify the economy.  The reform of the current 
investment framework (through amendments to the Company Law) is perceived as one of the most 
important ways to materialize this objective a nd attract more FDI to support this endeavour. 
(2) KNOWLEDGE ECONOMY  
76. Being in its way to achieve the goals of fede ration strategy and its vision for 2021 as well as 
changing the economic structure.  The UAE has taken several positive wide steps regarding the 
transformation of its economy from the traditional economy to knowledge economy.  Some of these 
steps are consolidating the legislative and regulatory structure in the field of technology and communications, building up human and institu tional capacities concerning information and 
communication technology, consolidating information and communication infrastructure, and state 
orientation towards knowledge economy. 
(3) C
OMPETITION  
77. In order to protect consumers from unjustified price increases, a draft Competition Law was 
drafted after evidence surfaced of possible anticom petitive practices and it is now being reviewed by 
the Federal National Council.  This is in line with  the strategy of the UAE government to create an 
enabling business environment that is conducive to economic growth. 
78. The UAE has already set up a consumer protection authority. WT/TPR/G/262 Trade Policy Review 
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79. The UAE established the Emirates Competitiven ess Council (ECC), which is comprised of 
18 representatives from the seven emirates at the fede ral and local levels of government as well as the 
private sector.  The council works together in pa rtnership with public and private entities.  The 
council enacts policies and undertakes actions that will drive the UAE’s competitiveness agenda and 
unite the country towards achieving the nation’s vision for sustainable growth and prosperity. 
(4) E-GOVERNMENT  
80. The UAE is ranked the 49th in the UN eGovernment  survey issued in early 2010.  Since then, 
great efforts have been made by the Emirates eGove rnment and various govern ment entities to further 
enhance the eGovernment profile and enrich the value delivered to both the public and business 
sectors. 
81. The national portal of the country (government.ae)  has been revamped recently to reflect the 
country’s shift towards Government 2.0.  The port al leverages social media tools to promote the 
adoption of key new concepts and practices such as citizen online participation and Open Data. 
82. The portal also offers a single point of entry to more than 500 government services provided 
by the federal and local government entities.  Thes e services target citizens, residents, businesses and 
tourists and can be browsed a nd searched in different methods. 
83. All these new developments have extended to cover the websites of key government entities 
such as the Ministries of Economy, Finance, Forei gn Trade, Education, Social Affairs, Labour and 
Environment and Water.  These developments are be ing implemented in alignment with “UAE Vision 
2021” and the United Nations M illennium Development Goals. 
84. As a result, (government.ae) has been honoured w ith the Best Strategic Website Award by the 
Arab League and the Best National Portal award at the 2nd GCC eGovernment conference.  Moreover, 
continuous efforts are being made to foster cr oss-government integration to ease business initiation 
and management for local and foreign investors. 
(5) LABOUR MARKET AND EMIRATIZATION POLICY  
85. The UAE is, perhaps, the only country in the world where fo reigners dominate the private 
sector, both as employers and employees.  In almost all countries that allow immigration, the rule is 
that foreigners are only allowed to take up jobs wh en suitably-qualified nationals are not available. 
86. This situation is in need of serious thinking and careful policy-making that sets targets with a 
long-term vision.  One of the mechan isms to improve the situation is to adopt a more flexible mobility 
policy.  The Government has adopted a more flex ible labour mobility approach within the local 
market with the aim of maximizing the utilizatio n of the available foreigner labour supply and 
granting opportunities for skilled and professional expa triates to choose the most suitable job where 
they can maximise return for themselves and for their employers.  This policy is expected to have a 
positive impact on the sources of labour.  This mean s that demand for labour will be satisfied more 
from the internal labour supply and less from outside.  This will also improve wage levels and will 
thus have a positive impact on Emiratization. 
87. It is largely recognized that expatriate worker s will continue to play a vital role in the 
country’s economy.  Nevertheless, the authorities feel that the growth of the private sector and the employment of non-nationals cannot be left unregulated.  Hence, they propose the establishment of a 
quota system for nationals in certain sectors. United Arab Emirates WT/TPR/G/262 
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88. It is also recognized that in order for nationals to become active participants in the private 
sector, efforts need to be exerted by both parties.   This requires fundamental changes in attitudes, 
conditions and environment w ithin the private sector as well as among UAE nationals seeking 
employment. 
89. The authorities will continue to support the current  labour market strategy in order to increase 
employment opportunities for U.A.E. nationals.  This strategy should continue to rely on a qualitative 
approach consisting of raising the skills of natio nals through better education and training programs 
geared towards private sector labour demand.  
(6) WATER  
90. Water consumption in the UAE increased, this in crease is related to the increase in population 
and change in lifestyle.  The Government is giving this issue a priority.  Therefore; the UAE is now 
increasing the number of studies and researches.  It also started to create plans and find solutions to preserve this paramount source for future  generations.  The UAE has around 583 km
3 of ground water 
which includes 20km3 of pure water. 
(7) BETTER SYNERGY BETWEEN MULTILATERALISM AND BILATERALISM  
91. Currently, the UAE is involved in a vast programme of trade liberalization at the regional 
level.  The UAE policy is not the only example of such trends.  A growing number of economies are 
also seeking to liberalize their trade swiftly and on the basis of sound disciplines, even in services and 
investment.  In doing so, their preferred instrument  has been agreements concluded outside the WTO, 
the reason being that negotiations in the WTO are slow  and their ambition is not always set as high as 
the level that can be achieved in bilateral agreem ents.  The UAE, nevertheless, believes that it is 
essential to strengthen the current system within the framework of the principles and rules of 
international trade. 
92. Consequently, the UAE Government is committe d to pursuing trade liberalization globally, 
regionally, and individually with some leading partners.  However, it still believes that the 
international economic system will prosper most if the regional and bilateral agreements fit within a 
global framework of rules (i.e . within the WTO framework). WT/TPR/G/262 Trade Policy Review 
Page 18 
  
ANNEX:  THE UAE’S NEEDS IN TRADE-RELATED TECHNICAL ASSISTANCE 
(1) I NFORMATION ON THE MULTILATERAL TRADING SYSTEM  
 Exploring the possibility of setting up a coope ration program between the WTO and a selected 
UAE University to create a University Degree on WTO issues in the Department of Law or 
Economics. 
 Building on the success of previous experien ces, continuing to organize regional seminars, 
workshops, and conference on WTO-related issues in the UAE. 
 Organizing seminars for the Business Community and Academics with targeted messages on the 
advantages and rights as well as the constraints and obligations emanating from membership to 
the WTO.  
(2) I MPLEMENTATION OF THE WTO  AGREEMENTS  
 Organizing national seminars and workshops, either by the WTO secretariat or in cooperation 
with other international organizations, on: 
 Trade Facilitation. 
 SPS & TBT. 
 Trade in Services:  Classification of some service sectors e.g. energy services and maritime 
transport;  evaluation of trade in services. 
 IPR:  the familiarization of the Judicial and Customs authorities with the protection of IPR, 
legal and institutional impacts of the adherence to new international agreements on IPR (other 
than those required by TRIPS). 
 Notifications procedures related to all WTO agreements. 
 Regionalism/bilateralism and the Multilateral Trading System. 
 Trade and environment. 
 The Adaptation of domestic legislations regard ing contingency trade remedies and professional 
services. 
(3) C APACITY BUILDING  
 Strengthening negotiation skills and capacity building. 
 Allowing UAE candidates to benefit from training courses in the WTO Secretariat. 
 Export promotion technical and institutional support. 
 Trade capacity building and competitiveness e nhancement, awareness, and networking. 
 Technical assistance and capacity building in improving UAE’s e-commerce environment. 
 
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