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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. The UAE economy continues to be dominated by the oil sector and connected industries.  
However, attempts are under way to diversify the economy, particularly into the areas of services and 
manufacturing.  The petroleum sector accounted for 31.5% of GDP and 59.5% of export revenues in 
2010.  The UAE's estimates of proven crude oil reser ves are 97.8 billion barrels, equivalent to almost 
8.5% of the world's reserves, while production reache d 2.32 million barrels/per day in 2010.  Some 
95% of petroleum production is in the emirate of Abu Dhabi. 
2. In accordance with the Constitution1, natural resources in the UAE are vested in each 
individual emirate and not with the Federal Government.  Foreign equity  in projects is determined by 
the competent authorities of the local government of  the emirate where the natural resource is located. 
3. Agriculture represents a small share of the UAE 's economy, accounting for just 1% of GDP.  
Total cultivated land has decreased in recent years.  Lack of arable land, intense heat, periodic locust 
swarms, and limited water supplies are the main obs tacles to agricultural development in the UAE, 
which remains a major net food importer.  Foreigne rs, other than GCC nationals, are not allowed to 
own agricultural land, but may own up to a 49% stake in agri-business companies.  Fishing is 
restricted for UAE and GCC nationals.  Notificati ons to the WTO on agriculture remained pending as 
at December 2011.  The last notification with respect to domestic support dates from 2002, and 
corresponds to the years 2000 and 2001; the m easures notified were exempt from reduction 
commitments. 
4. During the period under review, the UAE has con tinued to seek to develop its manufacturing 
sector, in its quest to diversify away from oil.  Ho wever, some of the main manufacturing industries, 
such as petrochemicals, remain linked to the oil industry.  Nevertheless, this, there have been 
important developments in aluminium production and pharmaceutical products.  As per the GCC 
Common External Tariff, most manufactured imports fa ce a 5% tariff.  However, all materials used in 
the production of a licensed industri al project enter the UAE duty free. 
5. The services sector is experiencing fast growth, particularly in air and maritime transport, 
telecommunications, and tourism.  However, devel opment in the services sector would benefit, in 
general, from some flexibility in the current foreign investment limitations. 
6. In financial services, the emirate of Dubai was particularly affected by the global financial 
and economic crisis.  There was a sharp contraction in equity markets:  as a result of the crisis, market 
capitalization and the general share price index decr eased in 2009 and continue d falling in 2010.  The 
Emirates Securities and Commodities Authority responde d to the crisis by stepping up regulation, as 
did the Central Bank.  Minimum capital adequacy ra tios for banks were raised from 10% to 12% in 
2010.  Other measures adopted to counter the financ ial crisis included a moratorium on new licences 
for commercial banks, and placing a limit on the numbe r of branches permitted to licensed foreign 
banks.  The Central Bank also issued guidelines for implementation of the Basel II Capital Accord in 
November 2009.  Locally incorporated banks in  the UAE are well capitalized, with a minimum 
capital-adequacy ratio well above the legal requireme nt, reaching an average of 21.2% at the end of 
September 2011. 
                                                      
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7. Foreign banks must open branches in the UAE to  provide services there.  In 2010 a limit was 
imposed on the number of branches they may open;  they must not exceed eight branches in the UAE.  
Subsidiaries of foreign banks are not allowed.  Foreign banks are granted national treatment for 
paid-up capital requirements, but not with respect to  the taxation of profits, for which foreign banks 
are subject to a 20% tax on profits, wh ich is not applied to national banks. 
8. National and foreign insurance companies wishing to establish in an emirate must first apply 
to the Insurance Authority for an establishment pr ocedure, then for licensing.  Conditions for the 
granting of licences include economic needs criteria  and the appointment of a minimum number of 
UAE nationals as staff.  Eligible foreign insura nce companies may open a branch, appoint a local 
insurance agent and/or enter into an agency contract with a local  insurance agent representing them. 
9. Competition in the telecommunications sector re mains low; however, since the last review, 
the monopoly in telephony services has been terminat ed.  Despite this, as a duopoly with relatively 
high pricing policies, the market coul d benefit from increased competition. 
10. The UAE has one of the world's largest air transport industries.  It has five airlines, two of 
which are major international carriers, and two majo r airports, one of which is among the busiest in 
the world (Dubai).  The airline industry benefits  from the “open skies” policy adopted by the UAE, 
state-of-the-art civil aviation infrastructure, and competition between the emir ates.  The authorities are 
expecting the sector to continue to grow rapidly in  the near future through the role of the two main 
airports and airlines as hubs and transfer carriers.  The UAE's domestic market is relatively small. 
11. There are ambitious plans to increase the cap acity and activities of ports in the UAE.  
However, despite the policy of granting concession to private service providers in some areas, port 
management remains a prerogative of the different emirates.  As in other service areas, despite coordination to some extent, at the federal level, th e fact that each emirate is launching policies in the 
same area could lead to overcapacity.  Further coordination among emirates could assure that investment projects are complementary and lead to a more integrated development policy. 
12. Prior to the 2008-09 global financial crisis , the UAE had witnessed a construction boom, 
which helped sustain the emergence of conglomerates in this sector.  However, in the aftermath of the 
crisis, the construction sector suffered a major dow nturn, with values falling by 50% in Dubai and 
40% in Abu Dhabi.  The effects of the crisis we re exacerbated by the large number of new units on 
the market, resulting from the boom, and the reduction in the number of new buyers.  
13. Tourism is of growing importance in the UAE;  particular efforts have been made to build 
infrastructure, and there have been several deve lopments in the area.  The National Council for 
Tourism and Antiquities (NCTA) was established in 2008 to help align UAE tourism-related policies 
at the federal level.  However, tourism licences are issued by each emirate.  The creation of the NCTA 
is expected to boost the promotion of tourism. 
(2) A
GRICULTURE  
(i) Features 
14. Agriculture represents a small share of the UAE 's economy, accounting for just 1% of GDP in 
2009 and 0.9% in 2010, and employing around 3.8% of  the workforce.  Total cultivated land has 
decreased in recent years, and has been assigned to othe r uses, due partly to lack of irrigation water.  
Most of the UAE's cultivated land is in the emirate of  Abu Dhabi.  Lack of arable land, intense heat, 
periodic locust swarms, and limited water supplies ar e the main obstacles to agriculture in the UAE. WT/TPR/S/262 Trade Policy Review 
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15. According to the authorities, total agricu ltural production increased from 494,000 tonnes in 
2005 to 1.25 million tonnes in 2009.  The main agricu ltural products are dates, tomatoes, and fresh 
vegetables.  Livestock production comprises main ly chickens, goats, sheep, camels, and cattle, 
(Table IV.1). 
Table IV.1 
Agricultural and livestock production, 2005-10 
Production 2005 2006 2007 2008 2009 2010 
Crops and livestock primary ('000 tonnes) 1,554 1,526 1,522 1,570 1,513 1,609 
Subtotal of items 1,488 1,478 1,485 1,529 1,476 1,570 
Dates 760 750 758 758 758 759 
Tomatoes 240 229 202 202 202 205 
Vegetables fresh nes 100 96 135 140 124 136 
Cow milk, whole, fresh 12 12 12 12 13 101 
Camel milk, whole, fresh 39 41 40 41 41 40 
Goat meat 22 16 29 25 37 37 
Goat milk, whole, fresh 35 36 36 37 38 36 
Chicken meat 35 34 29 26 36 36 
Hen eggs, in shell 17 16 18 25 25 26 
Soybean oil 45 67 55 95 38 24 
Pumpkins, squash, and gourds 21 22 20 21 19 21 
Camel meat 15 8 22 20 20 20 
Cucumbers and gherkins 26 27 17 17 17 18 
Onions (including shallots), green 16 16 17 13 13 15 
Sheep milk, whole, fresh 12 13 14 14 12 12 
Mangoes, mangosteens, guavas 4 5 6 11 11 11 
Cauliflowers and broccoli 13 13 10 10 10 11 
Fruit juice 13 10 10 10 10 10 
Cabbages and other brassicas 15 16 9 9 9 10 
Carrots and turnips 2 2 9 9 9 9 
Citrus fruit, nes 5 5 7 7 7 8 
Potatoes 7 7 7 7 7 7 
Sheep meat 8 13 11 7 7 7 
Eggplants (aubergines) 20 21 7 7 7 7 
Fruit fresh, not specified elsewhere  5 6 6 6 6 7 
Live animals ('000 head) 18,455 18,467 16,645 16,763 18,263 18,272 
Chickens 16,000 16,000 14,000 14,000 15,500 15,500 
Goats 1,500 1,520 1,626 1,708 1,708 1,710 
Sheep 590 580 600 615 615 620 
Camels 250 250 359 378 378 380 
Cattle 115 117 59  62 62 62 
Horses 0.38 0.38 0.40 0.41 0.41 0.41 
Fisheries (tonnes) 90,000 86,735 82,500 78,300 74,075 77,705 
Crustaceans 470 512 630 750 870 712 
Diadromous fish 60 61 65 70 77 258 
Marine fish 89,280 85,977 81,579 77,200 72,803 76,339 
Molluscs 190 185 226 280 325 396 
 
Source : FAO, online information.  Viewed at:  http://faostat.fao.org/. 
16. The UAE remains a net food importer, although to tal exports have more than doubled since 
2004.  In 2009, the UAE imported around US$9.3 billio n of agricultural products; rice, its largest 
import, represented around 9% of total imports.  Other imports include chicken, meat, tea, palm oil, 
and wheat.  The UAE's agricultural exports in  2009 amounted to US$3.3 billion.  The main United Arab Emirates WT/TPR/S/262 
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agricultural exports include dates, fruits and vegeta bles, and natural flowers.  Re-exports comprise 
mainly rice, cigarettes, and refined sugar. 
(ii) Policy objectives for the sector 
17. In 2006, the Ministry of Agriculture and Fish eries was dissolved and policies related to 
agriculture and fisheries became the responsibility of  the newly created Ministry of Environment and 
Water (MOEW).  At the federal level, the MOEW is  in charge of designing agricultural policies and 
coordinating with other agencies.  MOEW's re sponsibilities include the sustainability of water 
security, safeguarding food security, and promoting environmental and bio-security.  The Abu Dhabi 
Food Control Authority (ADFCA) is responsible fo r food safety and agriculture in the emirate of 
Abu Dhabi, including animal health.2  According to the authorities, the UAE's long-term policy 
objective is to achieve food security, while protec ting the environment and scarce water resources.  
This will be attained by providing new sources of irrigation; disseminating modern irrigation systems; 
and establishing agricultural research centres in or der to improve domestic production of agricultural 
products, livestock, and fisheries. 
18. In the emirate of Abu Dhabi, the ADFCA em barked on a strategy to restructure the 
agriculture sector.  The strategy includes the reducti on of water consumption by 40% and of the use of 
fertilizers by 25% in the emirate's by the end of 2013.  According to (Abu Dhabi) Law No. 7 of 2010, 
the ADFCA offers financial assistance to farmers, an d will continue to do so in the future, but subject 
to conditions.  Farmers are granted a financial subs idy of AED 90,000 annually if they accept to:  stop 
cultivating Rhodes grass (a product that consumes around 93 billion gallons of Abu Dhabi's water 
annually);  become members of a farmers services cen tre (FSC);  sign a date service contract with an 
FSC;  and commit not to use their farm and its resources for commercial purposes.3  Government 
assistance is also provided in the Northern Emirates. 
19. Agricultural land is owned and managed pr ivately by UAE and GCC nationals only, 
foreigners, except for GCC nationals, are not allowed to own agricultural land.  However, foreigners 
may own up to 49% in agri-business companies.  Fishi ng is restricted for locals.  A licence is required 
for fishing in Abu Dhabi and is obtained from the Environment Authority of Abu Dhabi (EAD). 
20. Notifications on agriculture remain pending at end 2011.  During the period under review, the 
UAE has not made any notifications to the WTO with respect to domestic support.  The last 
notification dates from 2002, and corresponds to  the years 2000 and 2001.  The domestic support 
measures notified in 2002 were measures exempt  from the reduction commitment (green box and 
development programme measures).4  The UAE has notified to the WTO that it does not maintain 
export subsidies in agriculture;  however, the la test notification was made in 2002, which pre-dates 
the period under review.5 
21. Protection for agricultural products remains highe r than for non-agricultural products, with an 
average rate of 5.6% (WTO definition), compar ed with 4.6% for non-agricultural goods.  MFN 
applied tariff rates on agricultural products range from zero to 5%, with the exception of alcoholic 
beverages (50%), and t obacco products (100%). 
                                                      
2 MOEW online information.  Viewed at:  h ttp://moew.gov.ae/En/AboutMinistry/Pages/Values 
Aims.aspx. 
3 Khaleej Times , "Abu Dhabi Seeks To Reduce Usage of Water, Fertilizers", by Anwar Ahmed, 
24 October 2010.  
4 WTO document G/AG/N/ARE/5, 22 May 2002. 
5 WTO document G/AG/N/ARE/4, 22 May 2002 . WT/TPR/S/262 Trade Policy Review 
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(iii) Fisheries 
22. Fishing in the UAE is small-scale and traditiona l;  in the main speed boats and wooden dhows 
are used.  Fishing committees have been establishe d in each emirate to help the fishermen and to 
ensure proper coordination with other governmental bodi es.  In order to preserve stocks of fish that 
are sustainable, the Ministry of Environment and Water has issued several regulations concerning 
fishing gear, areas and seasons, and the structure of the workforce.  Accordi ng to UAE regulations, all 
fishing vessels must have a UAE citizen on board.  Th e regulations forbid the catch of undersize fish 
and the use of fish traps with less th an 2-inch mesh.  Fishing of various species is subject to restricted 
periods.  Fishing is prohi bited in spawning and nursery areas during the restricted period.  To improve 
fish stock, a comprehensive re-stocking progra mme is in place: juveniles and fingerlings of 
commercially important local species are released annually. 
23. The Government assists local fishermen in  procuring marine outboard engines and 
establishing small-scale fish farms.  The MOEW prov ides fingerlings for the start-ups.  Cooperatives 
assist fishermen in marketing their catch.  The UAE Government also provides support for 
commercial fish-farming activities, through the UAE Offsets Group (Chapter III(4)).  The group, for 
example, helped establish the aquaculture company Asmak. 
(3) MANUFACTURING  
(i) Features 
24. In its attempt to diversify away from oil,  the UAE has managed to position itself as an 
industrial hub in the Middle East in recent years.  In 2009, the manufacturing sector contributed 
10.1% of GDP and 9.7% in 2010.  There were 4,64 4 industrial establishments in 2009, and total 
employment was almost 348,000;  in 2010, the number of industrial undertakings had risen to 4,960 units. 
25. The UAE's main industries are food, beverages and tobacco; chemicals;  mineral products;  
metal products;  equipment;  paper products;  textiles and clothing;  and wood products (Table IV.2).  
The largest individual manufactured products includ e aluminium, cabling, petrochemicals, steel, and 
products of the marine industry.  The manufacturing sector was the recipient of 18.9% of total foreign 
direct investment in 2009.
6 
Table IV.2 
Manufacturing output by activity, 2007-10 
(AED million) 
Industry 2007 2008 2009 2010 
Food industries 334 359 379 405 
Wood products 489 546 615 656 
Paper products  294 317 362 384 
Chemical products 679 734 810 857 
Metallurgy 516 557 616 653 
Metallurgical products 1,042 1,178 1,315 1,437 
Spinning and weaving industries 267 277 282 290 
Mining and petroleum refining 69 77 82 87 
Other industries 162 174 183 191 
Total 3,852 4,219 4,644 4,960 
 
Source: Information provided by the UAE authorities. 
                                                      
6 Ministry of Economy (2010). United Arab Emirates WT/TPR/S/262 
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(ii) Legal framework and policy objectives for the sector 
26. The UAE's manufacturing sector is governed by Federal Law No. 1 of 1979.  The law applies 
to all industrial projects in the UAE with the excep tion of those pertaining to oil and gas extraction 
and refining; mineral raw materials refining;  and projects with a fixed capital of less than 
AED 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. 
27. The Ministry of Economy is the federal author ity in charge of implementing the 1979 Federal 
Law as well as formulating and implementing polic ies on manufacturing.  An industrial licence, 
issued by the Ministry of Economy, is required to undertake any industrial activity in the UAE.  All 
licensed industrial projects are granted a customs exemption on all materials included in the project, 
such as the raw material, the machinery, etc. (C hapter III(4)(i)).  The emirates and the Council of 
Ministers may provide various incentives schemes;  but the authorities state that these provisions are 
not applied, except for the import duty exemption me ntioned above.  During most of the period under 
review, the Emirates Industrial Bank (EIB) has helped industrial projects in the UAE by providing loans at preferential interest rates in the range of 3% to 5%.  The EIB has financed around 
65-70 projects each year (Chapter III(4)(i)).
7 
28. During the period under review, an advisory industrial committee was established in the 
Ministry of Economy, composed of members from the main ministries, a representative of each 
emirate appointed by the respective ruler, and repr esentatives of the private sector.  The committee 
may call upon experts from any other government agency and may establish sub-committees to 
analyse particular problems. 
29. The Government is expected to continue to  pursue its diversification programme through 
large-scale investments in the industrial sector.  A study prepared at the federal level identified the 
following potential industrial sectors:  shipbuildin g and vessels;  basic pharmaceuticals products;  
refined petrochemical products;  parts and accesso ries for motor vehicles;  and electric power 
generation, transmission, and distribution. 
30. The UAE's largest industrial conglomerate is the state-owned General Holding Corporation 
(GHC).  GHC is also an important player in implementing the of Abu Dhabi government industrial 
diversification policy.  The UAE general policy ap proach 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 key manufacturing companies.  In Abu Dhabi, the Higher 
Corporation for Specialized Economic Zones and Kh alifa Industrial Zones are the key players in 
developing and promoting industria l zones and investments in manufacturing activities.  Dubai is 
developing Dubai Industrial City, a new manufacturing zone that will focus on six industrial sectors:  
machinery and mechanical equipment;  transport equi pment and parts;  base metals;  chemicals;  food 
and beverages;  a nd mineral products. 
31. MFN applied tariffs on manufactured goods, except 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 fr ee.  The average MFN tariff rate in 2011 for non-
agricultural products (WTO definition) was 4.6%.  Protection is slightly higher than average for 
textiles and clothing, metals, and leather goods ;  however, tariff dispersion is very low. 
                                                      
7 In September 2011, unde r Federal Law No. 7 of 2011, the Em irates Industrial Bank was replaced by 
the Emirates Development Bank, which is in charge of real estate and industrial activities. WT/TPR/S/262 Trade Policy Review 
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32. In the context of the Doha Round, under the Non-Agricultural Market Access (NAMA) 
negotiations, the UAE sponsored a proposal in 2003 to  eliminate tariffs and non-tariff barriers (NTBs) 
on raw materials, mainly primary aluminium.8  In March 2009, Australia co-sponsored the UAE's 
proposal9 and in January 2011, both Members tabled a proposal on draft modalities for the sectoral 
tariff elimination in the raw material sector.10 
(iii) Selected industries 
(a) Petrochemicals 
33. The petrochemicals industry continues to be of  considerable importance in the UAE, despite 
attempts at diversifying the economy by ventur ing into new sectors.  The UAE accounts for around 
3% of total petrochemical and chemical output in the Gulf region.11  It currently produces 3.4 million 
tonnes of petrochemicals annually, which is expected  to more than double, to 7.8 million, by 2015. 
34. The UAE's petrochemicals activities are concentr ated in Abu Dhabi, with the majority of 
olefin and polymer production capacity in that emir ate.  Dubai is the second largest petrochemical 
producer in the UAE, and is especially important in  terms of exports, as it accounts for around 70% of 
the UAE's foreign trade in petrochemical products.  In its 2030 Economic Vision, Abu Dhabi plans to 
make petrochemicals one of its prime growth sect ors.  It aims to spend around US$100 billion by 
2030 to further develop the sector. 
35. Petrochemical production in Abu Dhabi is manage d by three subsidiaries of the state-owned 
Abu Dhabi National Oil Company (ADNOC):  Ruwais  Fertilizer Industries (Fertil), a joint venture 
between ADNOC (with a shareholding of 66%) and TOTAL (33%), which operates ammonia and 
urea plants;  Abu Dhabi Polymers Company (Borou ge), a joint venture between ADNOC (60%) and 
the European plastics company Borealis ( 40%), which processes and produces ethylene and 
polyethylene;  and ADNOC Linde Industrial G ases Company Ltd. (ELIXIER), which supplies 
industrial gases for oil, gas and to petrochemi cal companies in Ruwais, and other oil areas. 
36. Several petrochemical projects are under way in th e city of Taweelah.  Projects are frequently 
undertaken in collaboration with foreign players, w ith expansion plans currently more prominent than 
plans to set up new petrochemical plants.  Borouge is expected to expand its polyolefin operations by 
entering the FEED (front-end engineering and design) stage of its Borouge 3 project, which includes 
the construction of an ethane cracker, second ge neration Borstar polypropylene and polyethylene 
units, LDPE, and butane units.  This facility is ex pected to boost capacity by 2.5 million tonnes per 
annum by the fourth quarter of 2013.  In addition,  in 2009, Ruwais Fertilizer Industries (Fertil) signed 
a US$1.2 billion contract with Samsung Engineerin g to construct a second fertilizer complex to boost 
its production and export capacity.  The facility will produce urea and ammonia and is expected to be 
operational in 2012.  Another petrochemicals complex to be developed in Abu Dhabi is 
Chemaweyaat, which will be the only plant in th e region to use naphtha instead of ethane as 
feedstock. 
                                                      
8 WTO document TN/MA/W/37, 20 May 2003, 37 Add.1, Add.2, Add.3, Add.4 and Add.5. 
9 WTO document TN/MA/W/37/Add.6, 23 March 2009. 
10 WTO document TN/MA/W/37/Add.7, 7 January 2011. 
11 This includes the five GCC countries and Iran (see:  http://m.gulfnews.com/business/oil-
gas/petrochemicals-industry-to-get-55b-infusion-in-the-gulf-1.787932). United Arab Emirates WT/TPR/S/262 
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(b) Aluminium 
37. The aluminium industry is one of the UAE's main manufacturing activities.  Several state-
owned companies operate in the sector, most notably, Dubai Aluminium Company (Dubal).  Dubal is the world's seventh largest producer of high-qualit y primary aluminium, and exports more than 92% 
of its production.  Another significant aluminium producer is Emirates Aluminium (Emal), a joint 
venture between Abu Dhabi's Mubada la Development Company and Dubal.  Situated in the Khalifa 
Port Industrial Zone in Taweelah, Abu Dhabi, Emal  is expanding its productio n, which will make it 
the world's largest single-site aluminium smelter. 
(c) Pharmaceutical products 
38. Imports of pharmaceutical products are generally duty free.  Federal Law No. 4 of 1983 is the 
main law regulating the pharmaceutical industry.  Th e Ministry of Health is responsible for licensing 
pharmaceutical manufacturers in the customs territory of the UAE;  the Ministry also inspects the 
production of pharmaceutical manufacturers in th e free zones, for quality and good manufacturing 
practice (GMP) compliance.  Licensing of pharmaceutical companies in free zones is by the free zone authorities as per their applicable laws.  Most prod uction takes place in six companies outside the free 
zones, and in two companies in the free zones.  The authorities indicated that in late 2011 ten new 
pharmaceutical manufacturers were in the process of  establishment or of obtaining a licence. 
39. The largest company, in terms of capital and of sales, is the Gulf pharmaceuticals company 
(Julphar) based in Ras Al Khaimah.  A public listed company, with majority ownership from the emirate of Ras Al Khaimah, Julphar manufactur es around 518 types of pharmaceuticals adding up to 
around 3,780 products with sales of AED 935 million in 2010.
12  Neopharma, another main 
manufacturer located in Abu Dhabi Industrial City , produces medicine tablets, syrups, capsules, and 
suspension medicines.  
40. All other pharmaceutical producers are privately owned.  An important producer, Gulf Inject, 
set up by a group of local and Gulf business interest s in the Jebel Ali Free Zone, specializes in the 
production of intravenous solutions, also mostly for the export market. 
(d) Other industries 
41. In recent years, the UAE has been developing  its cable manufacturing industry, although 
growth has declined since the 2008 slump in the construction sector.  Large investments in the 
industry include a joint venture between Abu Dhab i Basic Industries Corporation (ADBIC) and Midal 
Cables Limited, one of the world's largest manufactur ers of aluminium rods and conductors, to set up 
an aluminium rod plant at Taweelah, with a comb ined investment of around AED 368 million.  In 
December 2009, the production capacity of DUCAB was 110,000 tonnes of aluminium rods. 
(4) ENERGY AND WATER  
(i) Petroleum 
42. The UAE is the world's seventh largest oil producer  and fourth largest exporter of crude oil.  
The petroleum sector accounted for 31.5% of GD P and 59.5% of export revenues in 2010.  The 
UAE's proven crude oil reserves are estimated at 97.8 b illion barrels, equivalent to almost 8.5% of the 
world's reserves.  Production was 2.32 million barrels /per day in 2010 (Table IV.3).  The UAE has 
                                                      
12 For more information see:  http://www.julphar.net. WT/TPR/S/262 Trade Policy Review 
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been a member of OPEC since 1974 and a member of the Organization of Arab Petroleum Exporting 
Countries (OAPEC) since 1970. 
Table IV.3 
Basic data on the petroleum subsector, 2006-10 
 2006 2007 2008 2009 2010 
OPEC proven oil reserves (m/b) 97,800 97,800 97,800 97,800 97,800 
Crude oil production ('000 b/d) 2,568.0 2,529.0 2,572.2 2,241.6 2,324 
Crude oil exports ('000 b/d) 2,420.3 2,342.7 2,334.4 1,953.4 2,103 
 
Source : OPEC (2010), Annual Statistical Bulletin, 2010/11.   Viewed at:  http://www.op ec.org/opec_web/static_files_ 
 project/media/downloads /publications/ASB2010_2011.pdf. 
43. Abu Dhabi holds around 95% of the UAE's oil re serves (around 92.2 billion barrels), followed 
by Dubai with 4 billion barrels, Sharjah with 1.5 billion barrels, and Ras al Khaimah with 100 million 
barrels.  The majority of the UAE's oil fields are located offshore.  Abu Dhabi’s main offshore 
oilfields are Umm Shaif, Lower Zakum, Upper Zakum13, al-Bunduq, and Abu al-Bukhoosh.14  
44. According to Article 22 of the Constitution of the UAE, natural resources are vested in each 
individual emirate, not with the Federal Government.  Any foreign equity in projects is determined by 
the competent authorities of the local government of the emirate where the natural resource is located.  
The Federal Ministry of Energy has limited powers to  set policies and planning at a federal level and 
is subject to the constitutional rights of the emirat es.  Its main functions include:  the coordination 
among local authorities on energy matters;  the compila tion of energy-related data and statistics;  and 
representation of the UAE in international organizations. 
45. In Abu Dhabi, the main petroleum producer, the Supreme Petroleum Council (SPC), is the 
main regulatory body of the sector, it sets polici es with regards to the preservation of petroleum 
resources, decision-making, policy formulation, and implementation.  The SPC was established by (Abu Dhabi) Law No. 1 of 1988.  The ruler of Abu Dhabi is the Council's chairman and retains final 
authority over key decisions relating to oil and gas development.
15  The SPC is the highest authority 
responsible for petroleum affairs in Abu Dhabi, a nd conducts its policy through resolutions, and is in 
charge of their implementation and follow-up.  The SPC is also responsible for implementing Law 
No. 8 of 1978 regarding the conservation of petroleum resources. 
46. The Abu Dhabi National Oil Company (ADNOC),  established in 1971, is the state monopoly 
in charge of the emirate's hydrocarbon interests around the world.  Through its 16 subsidiary 
companies, ADNOC has become one of the wo rld's largest oil conglomerates, operating in 
exploration and production of cr ude oil and natural gas; refining, marketing, supply and 
transportation;  and the manufacture of petrochemicals (Table IV.4). 
47. The right to explore, develop, and produce pe troleum is typically granted by way of a 
concession by the relevant emirate.  Concessions are often granted on a joint-venture basis;  the 
involvement of international oil companies is lim ited to minority ownership interests in the project 
companies that are granted the concession and to the provision of technical services to those project 
                                                      
13 Upper Zakum is the third-largest offshore oilfield in  the Gulf and one of the bi ggest in the world.  It 
is estimated to contain in excess of 50 billion barrels of reserves, with estimated reco verable resources of around 
16 to 20 billion barrels. 
14 Butt (2001). 
15 The SPC is also composed of the UAE Petroleu m Minister, and representatives of the Abu Dhabi 
Finance Department, ADNOC, and the Abu Dhabi Investment Authority (ADIA). United Arab Emirates WT/TPR/S/262 
 Page 69 
 
 
companies.  Abu Dhabi does not have specific legislation governing the granting of exploration and 
development concession rights.  However, a number of  laws affect the petroleum industry, including 
the (Abu Dhabi) Gas Ownership Law No. 4 of 1976, the (Abu Dhabi) Petroleum Resources 
Conservation Law No. 8 of 1978, the (Abu Dhabi)  Petroleum Ports Law No. 12 of 1973 and its 
amendment, and the Abu Dhabi Tax Decree of 1965. 
Table IV.4 
Abu Dhabi National Oil Company activities, 2011 
Main activities Subsidiaries of ADNOC 
Upstream operations for oil and gas exploration and extrac tion Abu Dhabi Company for Onshore Oil Operations (ADCO) 
 Abu Dhabi Marine Operating Company (ADMA-OPCO)  
 Zakum Development Company (ZADCO) 
Downstream operations of oil and gas refining and processing Abu Dh abi Gas Industries Limited (GASCO) 
 Abu Dhabi Gas Development Company (ADGAS) Al Hosn Gas 
 Abu Dhabi Oil Refining Company (TAKREER)  
Distribution of refined products ADNOC Distribution 
Marine transportation Abu Dhabi National Tanker Company (ADNATCO) 
 National Gas Shipping Company (NGSCO) 
Chemical and petrochemicals Ruwais  Fertilizer Industries (FERTIL) 
 Abu Dhabi Polymers Company Limited (BOROUGE) 
 ADNOC Linde Industrial Gases Company Ltd. (ELXIER) 
 
Source:  ADNOC online information.  Viewed at:  www.adnoc.ae. 
48. In the other emirates, the respec tive rulers regulate the oil and gas industry.  In Dubai, policy 
is regulated through the Department of the Ruler’ s Affairs and Petroleum Affairs, with the Executive 
Council of the Government of Dubai responsible fo r approving agreements relating to oil and gas 
development.  Operations are carried out thro ugh concessions or contracts concluded between 
companies and the Government of Dubai.  Th e Sharjah Petroleum Council is responsible for 
regulating policy regarding the development of oil and gas in Sharjah. 
49. It is expected that the UAE will continue to rely on hydrocarbons (oil and gas) for its energy 
consumption in the next years.  Abu Dhabi has fo rmulated a long-term vision to develop its energy 
sector both in terms of productivity and efficiency, wh ile also enlarging its economic base.  Following 
years of minimal investment in increasing capacity, Abu Dhabi, through ADNOC, is aiming to boost capacity from around 2.3 million barrels per day in 2010 to 3.5 million barrels  per day by 2017, the 
majority of which are targeted for exports. 
50. ADNOC has long maintained partnerships with in ternational oil companies (IOCs).  This is 
expected to benefit the UAE as more technologically  challenging oil reserves are being exploited.  
The IOCs benefit from production-sharing rights and are able to book reserves, although they receive 
a low rate of return.  Around 40% of the UAE's o il production is carried out by wholly foreign-owned 
concessionaires. 
51. Several projects are under way to increase crude oil production in Abu Dhabi's oil fields.  
These include the development of the offshore Upper Zakum field by the Zakum Development 
Company (Zadco), an ADNOC subsidiary, with an  investment of US$1.5 billion, Exxon Mobil on 
technical-based merit, submitted the winning bid in  an SPC tender and acquire d 28% of Zadco, with 
the Japan Oil Development Company holding 12% and ADNOC holding 60%.  Another large project 
is being developed by the Abu Dhabi Compa ny for Onshore Oil Operations (ADCO), with 
investments of US$1.5 billion, to develop three ne w fields in Abu Dhabi's north-eastern region:  WT/TPR/S/262 Trade Policy Review 
Page 70 
  
Al Dabbiya, Rumaitha, and Shanayel, with an initial production of around 10 0,000 barrels per day 
(b/d).16 
52. Downstream petroleum activities (i.e. the pro cessing of crude oil to fuel) are owned and 
managed by three ADNOC subsidiaries:  Abu Dh abi Gas Industries Limited Company (GASCO), 
Abu Dhabi Gas Liquefaction Company Limited (ADGAS), and Abu Dhabi Oil Refining Company 
(TAKREER).  The UAE has five refineries, with a total refining capacity of 781,250 barrels per day 
in 2009.  The largest two are ADNOC's Ruwais refinery with a capacity of 350,000 b/d and 
Umm Al-Nar at 150,000 b/d.  There are plans to build a new refinery at Fujairah with a capacity to 
process 500,000 b/d of crude oil.  Fujairah has the third-largest bunkering port in the world and is the 
country's major oil export terminal.  About 70% of total refined output is consumed domestically. 
53. The UAE levies a corporate tax on companies in oil and gas activities which is regulated by 
the individual emirates.  In Abu Dhabi the corpor ate tax applies in accordance with the Abu Dhabi 
Income Tax Decree of 1965, as ame nded.  Although not a petroleum-specific decree, it applies only to 
chargeable persons “dealing in oil”, “chargeable  persons” including foreig n entities, ADNOC and its 
subsidiaries, and any other domestic companies invol ved in petroleum.  The tax ranges between 55% 
and 85% depending on production.17  The Supreme Petroleum Council grants tax incentives to 
businesses that benefit Abu Dhabi, for example, through furthering its economic development, 
investment, technology transfer, and training of UAE nationals. 
(ii) Natural gas 
54. Natural gas is an increasingly important energy source and accounts for approximately two-
thirds of the UAE’s total energy consumption, w ith crude oil accounting for the remainder.  The UAE 
has the world's fifth-largest reserv es of natural gas, at 6.09 trillion  cubic meters, around 3.5% of the 
world total.  In 2009, the UAE produced approxi mately 48.8 billion cubic meters of natural gas 
(Table IV. 5);  Abu Dhabi holds about 92% of the UAE's gas reserves.  The majority of the UAE’s 
natural gas production is associated gas.  In Abu Dhabi, the non-associated Khuff natural gas 
reservoirs beneath the Umm Shaif and Abu Al Bukhush oil fields are among the largest in the world.  
55. Abu Dhabi’s gas policy is to develop gas res ources to meet growing domestic demand, giving 
priority to generating water and electricity, supply of gas to new industries,  petrochemical projects, 
and any re-injection needs.  Natural gas in Abu Dhabi is managed by two subsidiaries of ADNOC, the 
Abu Dhabi Industries Company (GASCO), wh ich handles onshore gas operations, with 68% 
ownership by ADNOC;  and the Abu Dhabi Gas Liquefaction Company (ADGAS) for liquefied 
natural gas (LNG) production, with 70% owne rship by ADNOC.  Foreign participation by 
international oil companies acc ounts for the remaining interests in GASCO and ADGAS;  the main 
players are Total, Royal Dutch Shell Group, Mitsui & Co, BP, and Partex Gas Corporation. 
                                                      
16 ADCO, in which ADNOC has a 60% interest, operates  onshore and in the shallow coastal waters of 
the Emirate of Abu Dhabi.  ADCO produces from six oil fields:  Asab, Bab, Bu Hasa, Sahil, Shah, and North East Bab (Dabbiya, Rumaitha, and Shanayel).  These fields  are linked by more than 450 kilometres of pipeline, 
with storage and shipping facilities at Jebel Dhanna, where tankers load crude oil for export to many parts of the 
world.  See ADNOC online information.  Viewed a t:  http://www.adnoc.ae/content.aspx?newid=27 &mid=27. 
17 Article 17 of the Abu Dhabi Income Tax Decree of 1965 stipulates that a company must pay a basic 
income tax at 55%.  However, if the production of cr ude oil during a calendar year reaches an average of 
100,000 barrels a day, then the rate increases to 65%, and if production r eaches an average of  200,000 barrels a 
day, the company must pay income tax at 85%. United Arab Emirates WT/TPR/S/262 
 Page 71 
 
 
Table IV.5 
Gas production and utilization, 2006-10 
(Million cubic metres) 
 2006 2007 2008 2009 2010 
Gross production 76,194 78,963 80,055 75,840 79,778 
Marketed production 48,790 50,290 50,240 48,840 51,282 
Flared 950 970 980 967 972 
Re-injection 20,984 22,033 23,135 22,051 22,406 
Shrinkage  5,470 5,670 5,700 3,983 5,118 
 
Note: Marketed production corresponds to gross production, minus th e volumes of gas flared or re-injected into the fields, minu s the 
shrinkage. 
 
Source: OPEC (2010), Annual Statistical Bulletin, 2010/2011 .  Viewed at:  http://www.ope c.org/opec_web/static_files_ 
 project/media/downloads /publications/ASB2010_2011.pdf. 
56. Since the 1970s, the UAE has exported liquefied  natural gas (LNG), mainly to Japan, but in 
2008 it became a net importer of gas, due to a sh arp increase in demand through increased electricity 
consumption (accompanied by a preference for natu ral gas as the feedstock for power generation and 
water desalination projects) and a growing petrochemical  industry.  It is estimated that as much as half 
of UAE’s natural gas production is used for dom estic power generation during the peak summer 
months.  Significant quantities of natural gas are also  used in re-injection operations for oil reservoir 
pressure maintenance. 
57. Given the increasing demand for natural gas, the UAE addresses the shortfall in domestic gas 
supply by importing around 30% of its domestic gas demand from Qatar through the Dolphin Energy 
Project (see Box IV.1).  In addition, the UAE has embarked on a substantial investment programme to 
boost domestic gas production, most notably through sour gas development pr ojects in Abu Dhabi.  
Sour gas reserves from the Shah Field are expected to produce 10 billion cubic metres per year at an 
estimated cost of US$12 billion.  Al Hosn Gas is a joint venture between ADNOC and Occidental and 
is expected to be operational in 2013.  Another project, undertaken by GASCO, the Integrated Gas 
Development Project, is due for completion in 201 2 and is expected to produce 7.5 billion cubic 
metres per year of high-pressure gas from the offshore Umm Shaif and Khuff fields for processing 
through new onshore facilities at Habshan and Ruwais. 
Box IV.1:   The Dolphin Project a regional energy initiative 
Dolphin Energy is a consortium of the Abu Dhabi government-owned Mubadala Development Company 
(51%) and Occidental Petroleum of the United States and Total of France (each of which holds a 24.5% stake).  Dolphin Energy was established in 1997 to further expand the UAE's gas network.  The project is the 
largest energy-related venture undertaken in the GCC region and the first cross-border refined gas 
transmission project involving the UAE, Qatar, and Oman. 
A development and production-sharing agreement (DPSA) was reached in 1999 between the governments of 
the UAE and Qatar to allow the Abu Dhabi Government and its partners to invest in the appraisal, drilling, 
and construction of the upstream facilities in the dedi cated concession area in the North Field.  In return, 
Dolphin Energy would share with Qatar the income fro m the by-products extracted at its Ras Laffan Gas 
Processing Plant, while buying all the natural gas produc ed for export to the UAE and Oman.  The agreements 
provide for the supply of Dolphin natural gas to each customer for terms of 25 years. 
Currently, Dolphin Energy helps meet around 30% of the UAE's energy requirements.  The project delivers 
around 2 billion standard cubic feet of natural gas per day to customers throughout the UAE and Oman.  
Moreover, Dolphin's natural gas is helping to support the Abu Dhabi Vision 2030 by being a reliable supplier of clean energy. 
Source: Information provided by the authorities;  and online information at:  www.dolphinenergy.com. WT/TPR/S/262 Trade Policy Review 
Page 72 
  
58. The UAE continues to export a large amount of gas, at relatively stable levels, 
notwithstanding the increase in imports to meet its dom estic needs.  This is largely because:  (i) a 
significant portion of the UAE’s natural gas pr oduction is committed to long- term LNG export 
contracts;  and (ii) most of its reserves are concentr ated in the emirate of Abu Dhabi, and the lack of 
an integrated gas pipeline distribution network means that the other emirates (particularly the 
“northern” emirates need to import natural gas. 
59. The emirate of Sharjah has its own gas production and investment projects.  Its main project, 
DanaGas, is the region's first privately owned gas exploration company.  DanaGas has active 
investments in the UAE, Saudi Arabia, Iraq, Egypt , and the United Kingdom.  DanaGas has been a 
pioneer in the creation of the "gas cities" concept, which aims to create an integrated natural gas 
industry cluster in various locations around the world. 
60. The UAE is assessing the exploitation and use of alternative renewable sources of energy, in 
particular solar power, through the Abu Dhabi Futu re Energy Company (MASDAR), which is wholly 
owned by the state-owned Mubada la Development Company.  The Federal Government's energy 
policy aims at producing 7% of total capacity by 2020. 
61. Nuclear energy has gained pr iority in recent years, follo wing the establishment of the 
Emirates Nuclear Energy Corporation, which was set up to act as the government investment arm for 
the development of nuclear energy. 
(iii) Electricity and water 
62. The UAE is the second-highest consumer of electr icity in the Arab Gulf countries, after Saudi 
Arabia.  In 2010, UAE residents consumed around 89,587GWh of electricity.  Plans for economic 
diversification, coupled with strong population gr owth, have led to increased demand for electricity.  
Electricity in the UAE is produced from conventiona l thermal sources, such as natural gas and diesel 
oil fuel.  Installed generation capacity increased from 15,865 MW in 2006 to 23,215 MW in 2010.   
63. Water resources are scarce.  Almost 93% of potable water is desalinated, and the rest comes 
from ground water.  In 2010, total desalinated  water production was 354,536 million gallons and 
ground water production 25,000 milli on gallons.  The supply of both electricity and water are highly 
subsidized in the different emirates. 
64. Electricity and water in the UAE remain under the responsibility of four entities:  the 
Abu Dhabi Water and Electricity Authority (ADW EA), the Dubai Electricity and Water Company 
(DEWA);  the Sharjah Water and Electricity Co mpany (SEWA), and the Federal Electricity and 
Water Authority within the Ministry of Energy, which supplies the four northern emirates.  The 
Ministry of Energy plays a coordinating role among these authorities.  ADWEA is the only government entity with domestic and foreign private ownership (40%). 
65. The electricity market in Abu Dhabi is based on a "single buyer" model where all generated 
power is purchased by ADWEA.  ADWEA sells th e electricity to the Abu Dhabi Distribution 
Company (ADDC) and Al-Ain Distribution Company (AADC) for distribution.  In addition, ADWEA 
pays a transmission company (TRANSCO) for wheeli ng charges of its transmission system.  This 
process is regulated by the Regulation and Supervision Bureau (RSB) in Abu Dhabi. 
66. The Dubai Electricity and Water Authority (DEWA)  is responsible for electricity and energy 
in Dubai. DEWA is in charge of overall power ge neration, transmission, distribution, and operation.  
The Supreme Council of Energy in Dubai is an inde pendent legal entity that aims to guarantee energy 
supply to end-users in the emirate. United Arab Emirates WT/TPR/S/262 
 Page 73 
 
 
67. The Ministry of Energy represents the UAE in  regional and global forums and coordinates 
between the local authorities on energy matters.  The Ministry also supervises the integration of the 
power grid of local projects in the UAE, known as Emirates National Grid Project (ENG). 
68. In order to increase electricity capacity, Abu Dhabi has actively involved the private sector 
through independent water and power projects;  fi ve projects have been concluded.  Dubai has 
recently involved the private sector, and one project is so far under way. 
69. Prices of electricity and water are determined at  emirate level (including the formula used and 
the criterion), taking into account the different emirates' government subsidies.  
(5) SERVICES  
(i) Financial services 
70. Prior to the global financial crisis of 2008 , the UAE's financial sector had experienced 
remarkable growth; with Dubai portrayed as the fina ncial hub of the Gulf region.  Financial services 
are of considerable importance to the economy, particularly to Dubai's;  they represented 6.8% of 
GDP in 20 10.  However, as a result of the crisis, many  UAE banks suffered from liquidity shortages 
and stock markets plunged;  the Dubai Financia l Market (DFM) and the Abu Dhabi Securities 
Exchange (ADX) fell by 68.5% and 46.4% respectivel y in November 2008.  The effect of the crisis 
on the economy in general, and on the financial sector in particular was substantial, particularly for 
Dubai.  The debt of the Dubai Government and its government related entities (GREs) has exceeded 
100% of GDP;  the greatest risk to the financial sect or is the possibility of further debt restructurings 
by Dubai (Box IV.2). 
71. The UAE financial system consists mainly of commercial banks, accounting for over 90% of 
total lending by the financial sector.  Equity and insurance markets are considered small, in 
comparison to other emerging markets.  Banking and financial intermediation services are regulated at 
federal level, by the Central Bank of the UAE;  insu rance services are also regulated at federal level 
under the authority of the Ministry of Economy. 
72. Under the GATS18, the UAE has made commitments on all banking and other financial 
services, with the exception of settlement and clear ing services for financial assets (as there was no 
stock exchange in the UAE when it became a Member of the WTO in 1996).  The UAE has bound 
measures on all these services for cross-border s upply and consumption abroad without limitation.  
Measures affecting mode 3 (commercial presence) supply remain unbound for new licences to operate 
bank branches and to expand activities of existing fina ncial entities.  In the area of insurance services, 
the UAE made no specific commit ments in its GATS Schedule.  Cross-border supply of insurance 
services is not possible for companies located abro ad.  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. 
                                                      
18 WTO document GATS/SC/121, 2 April 1996. WT/TPR/S/262 Trade Policy Review 
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Box IV.2:  The global financial crisis and its effect on the UA E's financial system 
In 2009, the UAE economy slowed down significantly as a result of the global rece ssion, the bursting of the 
Dubai property bubble, and the post-Lehman shutdown of international capital markets.  Dubai World (DW), 
one of three major holding compan ies owned by the Dubai Government, reached a debt standstill in 
November 2009.  Other government related entities (GREs) had similar financial difficulties.  
The UAE authorities adopted a number of measures to handl e the effects of the financial crisis, which led to a 
liquidity squeeze that began in the third quarter of 2008.  The Emirate of Abu Dhabi provided financial support to the Emirate of Dubai, through its participa tion in a financial support fund (see below).  Measures 
taken by the UAE authorities included, inter alia,  supporting the banking sector through liquidity injection, 
recapitalization, and deposit guarantee.  More specifica lly, the Central Bank of the UAE guaranteed all bank 
deposits for three years and provided an AED 50 billion liquidity support.  The Ministry of Finance injected 
AED 70 billion of deposits, which it later agreed to convert into subordinated debt, and the Government of Abu Dhabi injected AED 16 billion of capital into the five largest banks based in Abu Dhabi. 
In July 2009, the Government of Dubai established the Dubai Financial Support Fund (DFSF) to provide 
financial assistance to GREs of st rategic importance.  The DFSF manage s a US$20 billion bond programme, 
half of which was subscribed by the Central Bank and the rest by the emirate of Abu Dhabi.  Following the 
DW standstill announcement, the Government of Dubai enacted a special insolvency regime for DW and its 
Nakheel subsidiary specialized in real estate developmen t.  The debt restructuring of DW was agreed by all 
creditors in late October 2010.  The restructurin g plan covered US$24.9 billion of debt, of which 
US$14.4 billion was owed to some 90 domestic and foreign banks and the remaining US$10.5 billion to the 
Government of Dubai.  The bank debt refinancing was at low interest rates (1%) and with long maturity periods (five years for a US$4.4 billion, and eight y ears for a US$10 billion tranche.  The US$10.5 billion 
government debt was to be converted into equity through the DFSF, which committed to provide new funds 
up to US$1.5 billion to DW for the company’s working ca pital and interest payments.  Through the DFSF, the 
Government would also provide US$8 billion new equity  to Nakheel and convert its existing US$1.2 billion 
debt into equity.  Nakheel was to be separated from DW and owned directly by the Government;  its creditors 
and suppliers to be paid off with a combination of 40% cash and 60% debt security. 
According to the IMF, the DW debt restructuring led to  an increase in Dubai sovereign debt, with spill-overs 
to the banking sector and financial markets.  Debt due in 2011-12 is estimated at around US$31 billion, of 
which at least US$5 billion in the real  estate sector.  Other Dubai GREs have reached or are also in debt 
restructuring negotiations with banks, such has been the case of Dubai Holding Commercial Operations 
Group (DHCOG), Dubai Group (DG), and Dubai Internationa l Capital (DIC).  Also, there are signs that some 
Abu Dhabi GREs heavily investing in the real estate  sector are experiencing financial difficulties.  
Nevertheless, investor confidence, es pecially in Dubai has risen as a result of several major GRE's reaching 
restructuring agreements with their lenders. 
Source: International Monetary Fund (2011). Staff report for the 2011 Article IV Consultation-Staff Report;  Staff 
 Supplement;  Public Information Notice on the Executive Board Discussion .  IMF Country Report No. 11/111, 
 May.  Viewed at:  h ttp://www.imf.org/externa l/pubs/ft/scr/2011/cr11111.pdf.  
 
(a) Banking 
73. The UAE's banking sector is the second largest among GCC countries, after Saudi Arabia.  
Total assets increased by 5.7% from AED 1,519 billi on at the end of 2009 to AED 1,605 billion at the 
end of 2010, but their share of GDP declined fro m 153% to 144%.  Assets were at AED 1,672 billion 
in September 2011.  Bank deposits increased from AED 982 billion at end 2009 to AED 1,049 billion 
at end 2010, an increase of 6.8%;  they  reached AED 1,067.3 in September 2011.19   Loan growth 
declined in 2009-10 due to the Dubai debt crisis a nd a collapse in real estate property prices;  this was 
reflected in a lower share of loans to GDP, wh ich declined from 99% in 2009 to 95% in 2010. 
                                                      
19 UAE Central Bank online information.  Viewed  at:  http://www.centralbank.ae/en/pdf/dataroom/ 
UAEMonthlyBanking Indicators-July11.pdf. United Arab Emirates WT/TPR/S/262 
 Page 75 
 
 
Table IV.6 
Selected monetary and banking indicators, 2006 to September 2011 
(US$ billion unless otherwise specified) 
Indicators 2006 2007 2008 2009 2010 Sept. 2011 
UAE Central Bank       
Total assets/liabilities 28.1 77.9 52.8 55.5 62.3 74.5a 
Foreign assets and gold holdings 27.9 77.8 30.8 24.5 31.8 44.2a 
Notes and coins issued 7.3 8.6 12.3 12.4 13.0 14.0 a 
Banks       
Total assets/liabilities 225.0 327.4 394. 3 414.2 438.2 465.5 a 
Foreign assets 63.2 53.6 55.4 56.7 63.6 71.0 a 
Foreign assets to total assets (%) 28.1 16.1 14.1 13.7 14.5 15.3 a 
Foreign liabilities 48.4 87.4 77.0 68.4 74.0 78.9 a 
Foreign liabilities to total liabilities (%) 21.5 26.7 19.5 16.5 16.9 17.0 a 
Depositsb 141.3 195.0 248.4 267.6 285.8 306.6 a 
Residents 127.8 177.4 226.9 243.4 253.0 273.0 a 
Non-residents 13.5 17.6 21.4 24.1 32.8 33.6 a 
Bank credit (net)c 137.0 189.6 268.2 277.0 280.7 287.5 a 
Residents 120.1 170.6 251.7 261.0 264.7 267.2 a 
Non-residents 16.9 19.0 16.5 16.0 16.0 20.3 a 
Local banks 21 22 24 24 23 23 
Branches 431 507 614 674 732 757 
Foreign banks 25 27 28 28 28 28 
Branches 81 80 82 82 83 83 
Number of workers in banks (in UAE)d 26,963 32,142 39,589 37,704 37,403 37,291 a 
 
a June 2011. 
b Excluding inter-bank deposits. c Excluding  loans to banks, net of provisions and interest in suspense. d Excluding auxiliary staff. 
 
Source: Central Bank of the UAE, Statistical Bulletin, various issues.  Viewed at:  http ://www.centralbank.ae/en/index.php;  
 and UAE Banking Indicators.  Vi ewed at:  http://www.cen tralbank.ae/en/pdf /dataroom/UAEMonthlyBanking 
 Indicators-July11.pdf. 
74. At the end of September 2011, the UAE had 51 commercial banks (up from 46 in 2006), with 
23 national banks (of which 8 are Islamic) and 28 foreign banks (including GCC banks).  During 
2006-07, the number of GCC banks increased from three to six.  There are 20 foreign banks with head offices in Dubai and 8 in Abu Dhabi;  83 bran ches of foreign banks (including GCC);  and 
757 branches of national banks.
20  There are 4,053 automated teller machines (ATMs). 
75. There are 110 licensed representative offices of fo reign banks and financia l institutions (42 in 
Abu Dhabi, 67 in Dubai, and 1 in Sharjah).  In a ddition, two investment banks  operate in the country, 
Arab Emirates Invest Bank, and HSBC Financial Se rvices (Middle East) Limited.  In 2009-2010, the 
Central Bank granted three wholesale bank licences to Deutsche Bank AG and Industrial, Commercial 
Bank of China, and the Bank of Tokyo-Mitsubishi UF J Ltd.  In 2011;  a fourth wholesale licence was 
issued to the Korea Exchange Bank. 
                                                      
20 Central Bank online information.  Viewed at:  http://www.centralbank.ae/en/pdf/bsed/1-1-
LB%20br.%20List%2031-10-2010_english.pdf. WT/TPR/S/262 Trade Policy Review 
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76. Union Law No.10 of 1980 governs the Cent ral Bank, the monetary system, and the 
organization of banking in the UAE.  Under the law,  there are five principal categories of banking 
institutions in the UAE:  commercial banks, invest ment banks, financial in stitutions, financial and 
monetary intermediaries, and representative offi ces, each of which must be licensed by the 
Central Bank. 
77. Foreign banks operating in the UAE are also regulated by the Central Bank and must open 
branches in the UAE;  they must be licensed by the Central Bank and (since 2010), are subject to a 
maximum of eight branches in the UAE.  The typical operation of a foreign bank takes the form of a 
branch.  Subsidiaries of foreign banks are not allowed, but foreign banks are allowed to open 
representative offices.  Foreign banks are granted na tional treatment for paid-up capital requirements.  
All commercial banks, including branches of foreign banks are required to have a minimum paid-up 
capital of AED 40 million, or 10% of risk weighed asset s in the UAE, whichever is greater.  However, 
national treatment is not applied as regards the taxati on of profits.  Foreign banks are subject to a 20% 
tax on profits, which is not applied to national ba nks.  The authorities indicated that banks were 
required to adopt Basel II provisions as of 2006.  
78. Financial investment companies are regulated by Central Bank Resolution No. 164/8/94, of 
18 April 1995.  This resolution defines financia l investment companies as those conducting one or 
more of the following business:  (a) opening inv estment accounts and managing portfolios on behalf 
of others, whether individuals or companies;  (b) preparing feasibility studies for projects and 
marketing allotments and stocks of shareholding  companies;  (c) establishing and/or managing 
investment trust funds;  (d) establishing and/or mana ging other investment funds and acting 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 AED 25 million,  subject to increase according to the business the 
company intends to undertake.  The resolution also requires national shareholding of not less than 51% of the paid-up capital, in addition to other terms and conditions in the regulation.
21 
79. UAE banks were expected to follow Basel II guidelines since 2006 as per Central Bank 
Notice 3,735/2006 “Basel II Implementation in the UAE” of 27 August 2006 and Notice 4,004/2009 
“Capital Adequacy”.  The latter increased the mi nimum capital adequacy ratio (CAR) from 11% to 
12% from 30 June 2010.  The CAR measurement of capita l allows banks to maintain Tier 2 capital at 
a maximum of 67% of Tier 1 capital.  UAE banks are well capitalized, with a CAR of 21% and Tier 1 
CAR of 16.4% in mid 2011.22 
80. The Central Bank issued guidelines for implementation of the Basel II Capital Accord in 
November 2009; the guidelines have been in effect since then.23  As per the guidelines, although BIS 
standards on Basel II are generally applicable, spec ific guidelines given by the Central Bank are to 
prevail.  The guidelines mandate the immediate effec tive application of the standardized approach for 
credit risk, and encourage "internationally active UAE  banks" to migrate to the foundation internal 
rating based (FIRB) approach in due course.  Banks  may select any of the market risk and operational 
risk approaches, with the advanced options requi ring explicit approval by the Central Bank.  The 
                                                      
21 Central Bank online information.  Viewed at:  http://www.centralbank.ae/en/index.php?option= 
com_content&view=article&id=134&Itemid=99. 
22 Central Bank online informati on.  Viewed at:  http://www.cen tralbank.ae/en/pdf/dataroom/ 
UAEMonthly BankingIndicators-July11.pdf. 
23 The guidelines focus on specific issues of relevance for the UAE banking community;  the complete 
Basel II guidelines include:  Bank for International Settlements, "International Convergence of Capital 
Measurement and Capital Standards", June 2006, and Bank for International Settlements, "Enhancements to the Basel II Framework", July 2009. United Arab Emirates WT/TPR/S/262 
 Page 77 
 
 
Central Bank also expects each bank to develop and document its own internal capital adequacy 
assessment process (ICAAP), which is  to become a key component of its supervisory review.  
quarterly prudential reporting by banks of their cap ital calculations under the standardized approach 
has been required since the quarter ending 30 September 2009. 
81. 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 provisioni ng rules requiring banks to classify loans as being 
in default, and make provisions accordingly, after 90 days of delinquency, instead of the previous 
6 months (introduced in November 2010)
24;  a limit on personal loans to 20 times the monthly salary 
or income of a borrower, with a maximum repaym ent period of four years;  and restrictions on 
processing fees for loans, debit, and credit cards. 
82. The banking sector has undergone some mergers and acquisitions as a way of consolidating 
funds.  In 2008, the Emirates Bank and National Ba nk of Dubai (NBD) merged to form Emirates 
NBD, the largest bank in the UAE, with a market  capitalization of AED 19 billion.  In 2011, the 
Abu Dhabi-based Real Estate Bank merged with  the Emirates Industrial Bank (EIB) to create 
Emirates Development Bank, with an initial market capitalization of up to AED 10 billion. 
83. Islamic banking in the UAE accounts for arou nd 14% of total banking assets, with large 
potential for growth.  Islamic banks are governed by  Federal Law No. 6 of 1985 and regulated by the 
Central Bank;  the capital adequacy ratio requirement s for Islamic banks are the same as for ordinary 
banks.  Islamic banks must take the form of join t-stock companies and may engage in any banking 
operation.  The UAE has eight Islamic banks offe ring Shariah-compliant products and services such 
as:  sukuks  (Islamic bonds) and ijara transactions, which are used in property purchasing deals.25 
84. At end September 2011, there were 116 moneychangers (main offices) operating in the UAE 
with 613 branches, up from 114 main offices and 562 branches at the end of 2010.26 
85. Foreign banks pay a 20% local emirate tax on pr ofits, governed by specific legislation in each 
emirate.  There are no restrictions on the presence of  foreign senior staff in foreign banks.  All banks 
in the UAE are required to employ a minimum of  10% UAE nationals in total staff (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. 
(b) Securities 
86. As a result of the global financial crisis, mark et capitalization and the general share price 
index began to decrease in October 2009 and continue d to fall in 2010.  Market capitalization fell by 
4.8%, from AED 404.7 billion at the end of 2009 to AED 385.4 billion at the end of 2010;  and the general share price index decreased by 4.2% in 2010.  The price earnings ratio (price per share 
divided by annual earnings per share) was 13.3 at the Abu Dhabi Securities Exchange and 17 at the 
Dubai Financial Market by the end of 2010. 
                                                      
24 Notice No. 28/2010, 11 November 2010, Central Bank Revision of the Regulations for Classification 
of Loans and Determining their Provisions. 
25 According to Islamic banking laws, banks may not ch arge a fixed interest rate on deposits or loans 
but only variable interest rates based on a profit/loss sharing model. 
26 Central Bank of the United Arab Emirates (2011). WT/TPR/S/262 Trade Policy Review 
Page 78 
  
87. The UAE has three stock exchanges:  the Dubai Financial Market (DFM), the Abu Dhabi 
Securities Exchange (ADX), and NASDAQ Dubai (formerly the Dubai International Financial 
Exchange (DIFX).  NASDAQ Dubai is part of the Dubai International Financ ial Center (DIFC) free 
zone; whereas the DFM and ADX are both “on-shore” st ock exchanges.  In addition to these equity 
and bond exchanges, the UAE has the Dubai Gold and Commodities Exchange (DCGX), which trades 
in financial derivatives, and the Dubai Mercan tile Exchange (NYMEX), which is the first 
international energy futures and commo dities exchange in the Middle East. 
88. The Dubai Financial Market (DFM) was establis hed 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 th e country,  and units of investment funds and any 
other financial instruments, local or foreign, th at are accepted by the Market.  The DFM started 
operations in March 2000.  In December 2005, it w as converted into a public joint-stock company 
with a paid-up capital of AED 8 billion allocated ove r 8 billion shares, with a par value of AED 1 per 
share;  20% of these shares were offered for public subscription.27  Market capitalization reached 
AED 194.9 billion in July 201128 (Table IV.7). 
Table IV.7 
UAE securities market, July 2011 
 Abu Dhabi Securities Exchange D ubai Financial Market NASDAQ Dubai 
Market capitalization, July 2011 
(AED million) 275,115 194,880 38,743 
Average daily trading value, 
2010 average (AED million) 151.2 82.7 18,919 
Number of listed companies/bonds, 
July 2011 65/1 64/7 .. 
Number of brokerage companies 62 62 .. 
Ownership Abu Dhabi Government:  100% Public:  20% and Borse 
Dubai (owned by Dubai 
Government) 80% Borse Dubai (owned by 
Dubai Government) 66.7% 
and 33.3% NASDAQ-OMX 
 
.. Not available. 
 
Source: Information provided by the UAE aut horities;  Abu Dhabi Stock Exchange.  Viewed at:  http://www.adx.ae/ 
 PublicationAttac hments/Aug2011-report_9-11-2011%202_09_55%20PM.pdf;  and Dubai Financial Market.  
 Viewed at:  http://dfm.a e/documents/Publications/e0724b3f-c 1f5-4be1-98a6-90d4d1e8348c.pdf.  
89. The Abu Dhabi Securities Exchange (ADX)  was established on 15 November 2000 by 
(Abu Dhabi) Law No. 3 of 2000, the provisions create  an autonomous legal entity, with independent 
finance and management, and the necessary supe rvisory and executive po wers to exercise its 
functions.  These functions are to:  provide opportun ities to invest savings and funds in securities in 
order to benefit the UAE economy;  ensure the so undness and accuracy of transactions and the proper 
interaction between demand and supply  in order to determine prices;  protect investors by establishing 
fair and proper dealing principles between the va rious investors;  impose controls over securities 
transactions to ensure sound procedures;  and ensu re the financial and econom ic stability and develop 
the appropriate trading methods needed to ensure liq uidity and stability of the prices of the securities 
listed on the market.  The ADX has the authority to establish centers and branches outside the Emirate 
                                                      
27 Dubai Financial Market online information.  Viewed at:  http://dfm.ae/pages/default.aspx?c=801. 
28 Dubai Financial Market (2011). United Arab Emirates WT/TPR/S/262 
 Page 79 
 
 
of Abu Dhabi.  The Abu Dhabi Securities Excha nge board of directors comprises seven members 
nominated by Decree, for a term of three years.29 
90. The Emirates Securities and Commodities Authority (SCA) is in charge of regulating the 
DFM and the ADX, while the Dubai Financia l Services Authority (DFSA) regulates NASDAQ 
Dubai.  The SCA is an independent body, chaired by the Minister of Economy, under Federal Law 
No. 4 of 2000.  It is responsible for regula ting the licensing, management, membership, and 
supervision of financial markets a nd brokerage firms.  The SCA is the only agency legally authorized 
to approve the listing of securities.  SCA regulations allow foreign firms to list their securities in these 
markets after having satisfied certain requirements.  Currently, 20 of the 130 companies registered in 
the SCA are foreign.  The ADX and DFM starte d operating the Delivery Versus Payment (DVP) 
procedure in May 2011. 
91. The number of finance companies licensed to op erate in the UAE decreased from 24 in 2009 
to 23 in 2010.  No new company was given a licence to operate during 2010 or 2011, although there is 
no moratorium on licensing new financial institutions  or on establishing branches of existing ones.  
Two companies were licensed during 2009:  Abu Dhabi Commercial Islamic Finance Company, and 
Siraj Finance Company,  There are also 13 fina ncial consultancies (all locally incorporated), 
15 financial intermediaries dealing in currenc ies and commodities as money market transactions 
(Forex dealers), and two investment banks. 
92. No changes were made to the relevant legisl ation during the review period.  Federal Law 
No. 4 of 2000 is the main piece of legislation re gulating the licensing, management, membership, and 
supervision of the financial mark ets and brokerage firms in the UAE, with the exception of NASDAQ 
Dubai.  Brokers seeking to operate on the DFM and ADX exchanges must establish a company with 
at least 51% national ownership, minimum capita l of AED 30 million and the necessary financial 
guarantees (currently a AED 20 million bank guarantee). 
93. Since the last Review of the UAE, the SCA has i ssued a number of regulations that seek to 
develop the financial services industry and strengthe n supervision and regula tion of the financial 
sector.  These include a new Code of Corporat e Governance, issued in 2007, to set governance 
practices and disclosure of listed companies and for regulating initial public offerings (IPOs) and 
secondary offerings (previously the role of the Mini stry of Economy);  2008 regulations concerning 
margin trading, dual listing, and financial consultation and analysis ;  2009 regulations concerning the 
custody of securities;  and 2010 regulations concer ning criteria for capital adequacy for brokerage 
firms in securities and commodity contracts.  The authorities indicated that a number of new 
regulations are in the pipeline, dealing with issu es including market makers and mutual funds.  The 
number of licensed brokerage firms decreased from 104 in 2007 to 61 in 2011.  Listed securities are 
tradeable via brokers only. 
Offshore financial services 
94. Despite the general policy of restricting ow nership and limiting the number of banks, the 
UAE authorities allow individual emirates to mainta in free zones specializing in the provision of 
financial services.  In this respect, the Dubai Inte rnational Financial Centre (DIFC), has independent 
jurisdiction under the UAE Constitution.  The DIFC is the only financial free zone currently within 
the UAE, although, technically, another could be cr eated.  Financial institutions established in the 
DIFC benefit from:  zero tax rate  on income and profits;  100% forei gn ownership;  no restrictions on 
foreign exchange or capital/profit repatriation;  oper ational support and business  continuity facilities.  
                                                      
29 ADX online information.  Viewed at:  http://www.adx.ae/Eng lish/AboutADX/Pages/ 
MarketEstablishment.aspx. WT/TPR/S/262 Trade Policy Review 
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The DIFC has its own court system, and as well as an independent centre for arbitration to which 
disputes may be brought.  Corporate capital in the DI FC is designated in U.S. dollars rather than UAE 
dirhams.  Institutions wishing to offer regulat ed financial services must obtain approval from the 
DFSA, the centre's independent regulatory body. 
95. Investments in NASDAQ Dubai, which is housed in  the DIFC, are not subject to the laws of 
the Emirates but to DIFC law.  In July 2010, NAS DAQ Dubai, made some structural changes to its 
market by outsourcing its key opera tional functions to the DFM, in order to help increase liquidity.  
There is no withholding tax on dividends, except fo r those on non-domestic dual-listed shares traded 
in NASDAQ Dubai, which may be subject to a w ithholding tax depending on the tax regulations in 
the country of origin.  There is no withholding ta x on interest on corporate bonds and no capital gains 
tax.  
(c) Insurance services 
96. According to the Insurance Authority, total insurance expenditure in the UAE more than 
doubled between 2006 and 2010, from US$2.7 billion to US$5.9 billion, in terms of total premium value.  Non-life insurance accounts for the bulk, ar ound 82% of total insurance expenditure, with the 
remainder in life insurance. 
97. In 2010, 59 insurance companies were licensed  in the different emirates, 32 national and 
27 foreign.  Most companies are based in Abu Dh abi or Dubai, and carry out the full range of 
insurance business (Table IV.8).  Eleven national and two foreign firms operate both life and non-life 
insurances;  two national and eight foreign firms undertake life insurance only, and 18 national and 
17 foreign firms carry out non-life insurance activities onl y.  In addition, there are:  11 UAE insurance 
agents;  170 insurance brokers (163 national and 7 foreign);  68 surveyors and loss adjustors;  
22 insurance consultants;  and 21 actuaries.  Between 2006 and 2011, six foreign companies were 
licensed.  The three largest insu rance companies operating in the UAE are:  Oman Insurance 
Company of Dubai, Islamic Arab Insurance Co mpany of Dubai, and Daman Health Insurance 
Company of Abu Dhabi.  
Table IV.8 
Insurance premiums and claims, 2010 
(US$ million)  
  Total Local Foreign 
  Claims Premiums Claims Premiums Claims Premiums 
Car 772 1,173 582 818 190 355 
Cargo and transportation 241 608 184 480 57 128 
Fire 309 616 256 460 53 157 
Theft 0 2 0 1 0 1 
Life 213 1,096 58 374 154 721 
Othersa 1,364 2,496 1,149 2,050 215 447 
Total 2,899 5,991 2,230 4,182 669 1,809 
 
a Category comprises:  fidelity guarantee, civil liability, cash in safe, cash in transit, worker compensation, engineering, gl ass 
breakage, health insu rance, miscellaneous. 
 
Source: Insurance Authority, Ministry of Economy. United Arab Emirates WT/TPR/S/262 
 Page 81 
 
 
98. Insurance penetration in the UAE  is the highest in the Middle East, although it is still low by 
global standards.  In 2010, insurance penetrati on accounted for 2.15% of GDP.  Abu Dhabi made 
health insurance mandatory for expatriates in 200730, and for nationals in 2008;  this helped increase 
broader awareness of the concept and has resulted in higher penetration.  Life insurance policies still 
account for only a small proportion of ove rall business, but the popularity of takaful  insurance has 
spurred the growth of life premiums in recent years.31  The oil subsector represents a large share of 
insurance business. 
99. An independent regulatory agency was establishe d in 2007 to regulate the insurance sector in 
the UAE.  The Insurance Authority, under the purview of the Ministry of Economy, has among its 
functions:  formulating and issui ng regulations for the insurance industry;  approving and processes 
licences for insurance companies and brokers;  determining polic ies and procedures related to 
solvency margins, accounting policies, investment ru les and reinsurance standards;  and implementing 
a code of conduct for the insurance industry.  A new Federal Insurance Law (No. 6 of 2007) was 
adopted in 2007 to regulate the conditions for the establishment and operation of all insurance-related 
companies.32 
100. Domestic and foreign insurance companies wishi ng 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 offere d by the applicant;  whether the applicant will 
introduce new classes of insurance coverage;  a nd the appointment of a minimum number of UAE 
nationals as staff.33  Eligible foreign insurance companies that meet licensing conditions may open a 
branch in the UAE and appoint a local insurance ag ent,  it is also possible to open a representative 
office.  
101. National companies and foreign branches must  have minimum fully paid-up capital of 
AED 100 million (US$27 million), and must deposit, with a local bank, a guarantee of AED 6 million for non-life insurance and AED 4 million for life insurance.  Combined life and non-life, or non-
insurance-related operations are not  allowed.  As of August 2012, all insurance companies (new and 
existing) will be required to carry out life and non- life insurance separately.  The general manager, 
authorized manager, and senior employees of an in surance 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 fo reign branch must specify the expected overall volume of retention 
within the UAE market. 
102. Although allowed in principle, no new licences ar e currently being granted.  The Insurance 
Authority took the decision not to issue new licen ces in December 2008,  due to the relatively large 
number of insurance companies already operating in  the UAE, which is considered to be a small 
market. 
103. No taxes or stamp duty are levied on insurance companies at federal or emirate level on the 
settlements from life or non-life insurance. 
                                                      
30 Per the Abu Dhabi Health Insurance Regulation Bill of Law 35 of 2005. 
31 Takaful is an Islamic insurance concept grounded in Islamic banking, observing the rules and 
regulations of Islamic law. 
32 Law No. 6 of 2007 replaced Federal Insurance Law No. 9 of 1984.  
33 To be granted a licence, the foreign company must commit to engage UAE nationals in the following 
percentages:  10% of the staff or at least two persons in  the first year, rising to 25% of the staff or at least 
12 persons in the fourth year. WT/TPR/S/262 Trade Policy Review 
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104. 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 domestica lly 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.  To protect the interests of policyholders, the 
maximum foreign ownership of domestic insu rance companies allowed by law is 25%.  
Representative offices may not engage in insurance bus iness or act as insurance agents.  This does not 
apply to reinsurance services, for which commerc ial presence is not required:  UAE insurance 
companies may reinsure their risks from international reinsurance market s.  Insurance agents must be 
UAE citizens. 
(ii) Telecommunications and postal services 
105. The UAE has the highest mobile and internet pe netration in the Arab world, according to the 
WEF's Networked Readiness Index (NRI) (Table IV.9).34  In March 2011, mobile subscriptions per 
100 inhabitants were at 196.7, i.e. almost two mobile phones per person;  internet subscribers 
exceeded 1.3 million;  and there were around 1.7 milli on landline users.  The main reason for the high 
penetration rates is the large num ber of tourists, businessmen, and temporary residents that pass 
through the country (although a national ID card or passport is required to purchase a prepaid 
SIM card).  Usage of multiple SIM cards is also higher than usual, and th ere is a high level of 
cross-border traffic.  According to a report pub lished recently by the IT U, the UAE ranks second 
worldwide in the category "mob ile-cellular sub-basket as a percentage of GNI per capita".35 
106. The telecommunications sector is governed by  Federal Telecommunications Law No. 3 of 
2003 and its Executive Order No. 3 of 2004, and regulated by the Telecommunications Regulatory Authority (TRA).  The main functions of the TR A are to issue, implement and enforce all the 
regulations pertaining to telecommunications servi ces and licensed telecommunications operators in 
the UAE.  It is responsible for managing the frequency spectrum and numbering resources, and for 
standardizing type approval for telecommunications e quipment.  It is also responsible for developing 
sustainable competition in the sector to protect and promote consumer interests, by regulating 
interconnection and its pricing as well as retail services and prices. 
107. The Supreme Committee for the Supervision of the Telecommunications Sector, set up under 
the Telecommunications Law, was dissolved in 2008 under Law No. 5 of 2008 amending the provisions of the Federal Law No. 3 of 2003.  Un der the new law, the functions of the Supreme 
Committee were transferred to the TRA.  These functions include formulating general telecom 
policies, issuing telecom services and licensing, and fixing licence fees.  As a result, the TRA is 
responsible for all policy formulation and impl ementation for telecommunications in the UAE. 
                                                      
34 World Economic Forum (2011).  The NRI measures the capacity of an economy to fully leverage 
ICT for increased competitiveness and development.  The NRI study is based on data collected by organizations 
such as the International Telecommunications Union, the World Bank, and the United Nations.   According to 
the NRI, the UAE is ranked 24th out of 138 for overall country network readiness, reflecting the increasingly central role ICT occupies in the Government’s agenda, as an enabling infrastructure for economic diversification 
and a target sector in itself (the UAE is ranked 3rd fo r government readiness).  The Government’s focus in the 
sector has been matched by an equal interest in and capac ity for using the latest technologies by individuals (5th 
and 21st for individual readiness and usage, respectively), with a rapid incr ease in ICT penetration rates over the 
last few years.  Other competitive advantages are to be found in the very ICT-friendly market environment 
(18th) and infrastructure for ICT (28th).
 
35 International Telecommunications Union (2011). United Arab Emirates WT/TPR/S/262 
 Page 83 
 
 
Table IV.9 
Telecommunications indicators, 2007 to March 2011 
Fixed statistics 2007 2008 2009 2010 Mar. 2011 
Number of fixed linesa 1,324,213 1,454,929 1,561,196 1,460,985 1,722,060 
Fixed lines per 100 inhabitations 29.2 30.2 29.9 26.4 30.6 
Telephone connection charges 49.01 49.01 49.01 49.01 49.01 
Monthly subscription charges 4.1 4.1 4.1 4.1 4.1 
Cost of 3-minute local call 0 0 0 0 0 
Cost of 3-minute call to U.S. or France 1.12 1.12 1.12 1.12 1.12 
Cost of 3-minute call to Kuwait 1.12 1.12 1.12 1.12 1.12 
Total fixed telephony revenues (US$  million) 768.9 864.6 1,042.8 878.2 .. 
Fixed domestic calls revenues (US$ million) 303.5 316.6 347.7 312.3 .. 
Fixed international calls revenues (US$ million) 333.2 326.4 439.2 324.3 .. 
Mobile statistics      
Active mobile subscriptionsb 7,742.164 9,357,735 10,671,878 10,926,019 11,066,525 
Mobile subscriptions per 100 inhabitants 164.4 190.4 204.4 197.2 196.7 
Post-paid 770,071 824,589 958,685 1,176,435 1,238,273 
Pre-paid 6,972,093 8,533,146 9,713,193 9,749,584 9,828,252 
Total mobile revenues (US$ million)c 3,591.0 4,719.1 4,846.6 5,013.6 -317.1 
Internet statistics      
Internet subscribers 832,515 1,201,853 1,404,405 1,374,903 1,366,770 
Dial-up subscribers 528,633 642,849 713,981 584,821 553,364 
Broadband subscribers 303,882 559,004 690,424 790,082 813,406 
Broadband internet subscribers per 1 00 inhabitants 6.6 11.4 13.2 14.3 14.5 
Internet subscribers per 100 inhabitants (both broad- 
band and dial-up subscriptions 18.5 25.2 26.9 24.8 24.3 
Internet users per 100 inhabitantsd 45.1 61.3 67.3 62.0 60.7 
Peak dial-up access cost (US$/hour ) 0.49 0.49 0. 49 0.49 0.49 
Off peak dial-up access cost (US$/ hour) 0.27 0.27 0.27 0.27 0.27 
Total internet revenues (US$ million) 241.7 474.1 689.9 744.7 .. 
Investment      
Total investment (US$ million)  2,153.1 2,247.4 2, 600.5 2,142.0 .. 
Staff      
Telecommunications staff 10,695 11,759 11,890 11,528 .. 
 
.. Not available.  a Includes ISDN fixed lines. 
b Includes active mobile subscriptions only.  "Active" is defined by any subscriber who has made or recei ved a voice or video c all 
 in the preceding 90 days, or has sent an SMS or MMS during that period. c Excluding mobile data revenues. 
d Penetration rate calculated using the ITU methodology, which assumes there are 2.5 internet users per internet subscription 
 (includes broadband and dial-up usage).  
Note: Exchange rate AED 3.6725 = US$1. 
 
Source: Etisalat and Telecommunication Regulatory Authority. 
108. Important changes have been introduced with respect to market competition since the UAE's 
last Review;  however competition remains limited and the prices of services high.  As a result of the 
changes, the UAE telecommunications market is no longer a monopoly.  In February 2006, Du 
(Emirates Integrated Telecommunications Compan y) was awarded a licence to become the UAE's 
second telecom services operator, therefore endi ng Etisalat's (Emirates Telecommunications 
Corporation) 30-year monopoly in the telecoms sect or.  Both companies are majority owned by the WT/TPR/S/262 Trade Policy Review 
Page 84 
  
UAE Government.  Etisalat is 60% owned by the UAE Government, and 40% of its shares are 
publicly traded.  Du is owned by several UAE en tities, with public-sector ownership of over 50%, 
followed by the Emirates Investment Authority (3 9.5%), Mubadala Development Company (19.75%), 
and the Emirates Communications & Technology Comp any LLC (19.5%), while 21.25% of its shares 
are publicly traded.  All shareholders must be UAE  nationals, as foreign investors are not allowed to 
buy shares in these companies.  The TRA does not pl an to licence a third operator as it considers the 
current competition level in the UAE's telecoms sect or as adequate (especially in mobile services). 
109. Etisalat is a one-stop shop for mobile and fi xed-line voice and data services to individuals, 
enterprises and international telecommunications companies, ISPs , content providers, and mobile 
operators.  It also offers card manufacturing, clear ing house services, peering, voice and data transit, 
and submarine and land cable services.  Eti salat has 525 roaming agreements connecting 
185 countries enabling BlackBerry, 3G, and voice roaming.36 
110. In February 2011, Etisalat was the 16th largest mobile operator in the world, with operations 
in 18 countries across Asia, the Middle East, and Africa, and over 135 million customers.  In 2010, 
Etisalat reported annual net revenue of AED 31.9 bil lion, a 2% increase, while net profits decreased to 
AED 7.6 billion.  
111. Du is an integrated telecom service provider offering fixed and mob ile telephony, broadband 
connectivity, and IPTV services to individuals,  homes, and businesses, and carrier services for 
businesses.  Du has 40.2% of the mobile market in the UAE, with 4.4 million subscribers at end 2010.  
In 2009, Du's reported annual net revenue was AED 5.3 billion and net profits of AED 528 million.  
Its revenue increased 32% in 2010, and net pr ofits were AED 1.22 billion before royalties. 
112. Du paid the TRA a licence application fee of AED 300,000 and an initial licence fee of 
AED 124.5 million.  In addition, it pays an annual licence fee of AED1.5 million.  Other fees include 
radio spectrum authorization fees, number allocation fees and an annual fee for the telecommunications and information technology de velopment fund of 1% of the operator's total 
revenues.  Etisalat pays 50% of its profits in roya lties or taxes to the UAE Government, while Du paid 
15% in 2010.  The authorities explained that this  difference reflects the importance of supporting new 
market entrants through regulatory measures to enab le them to become strong competitors, and thus 
achieve effective and sustainable competition in the long term.  There are plans by the TRA to lower 
Etisalat's royalty amounts. 
113. Mobile subscriptions are expected to continue to rise as internet surfing on mobiles increases, 
although growth will be mostly from business visito rs, tourists, multiple SIM cards, and new services 
such as mobile broadband. 
114. In late 2011, a number of developments in the te lecoms sector were expected to be completed 
in the near future, including the introduction by  the TRA of mobile number portability;  and the 
TRA's approval for Etisalat and Du to compet e on fixed-line voice and broadband services, as both 
companies offer fixed-line services in the UAE, but not in the same districts. 
115. Postal services in the UAE are regulated at th e federal level by the Emirates Post Holding 
Group (EPHG).  Established under Federal Law No . 14 of 2007, EPHG has four subsidiaries:  
Emirates Post;  Emirates Cooperation for Commercial Postal Services (EMPOST);  Wall Street Exchange Center;  and Electronics Documents Cent er (EDC).  There are over 120 post offices in the 
UAE.  
                                                      
36 Etisalat has made efforts to roll out its fibre-to-the-home (FTTH) network in the UAE.  At end 2009 
it had completed the roll-out for 85% of households in Abu Dhabi. United Arab Emirates WT/TPR/S/262 
 Page 85 
 
 
116. Any company (national or foreign) wishing to  conduct courier services in the UAE requires a 
licence:  a licence is required for transport of doc uments, letter items, and parcels.  The licensing 
department at EPHG is responsible for granting an d issuing licences against payment of a prescribed 
fee (AED 100,000), and presentation of the necessar y documentation.  In 2011, 85 postal companies 
had been licensed by the EPHG, with 19  new companies registered in 2009. 
(iii) Transport 
(a) Overview 
117. Transport plays an important role in the UAE's  economic development.  In 2010 transport, 
storage, and communication constituted 9.05% of GDP.   Due to its geographical position, the UAE is 
strategically located to establish links between As ia, Europe, and Africa.  A key component of the 
UAE's economy, especially in Dubai and Abu Dh abi, has been its logistics and transport 
infrastructure, with continued investments to fulf il its long-term plans.  Plans include:  continued 
expansion of passenger and freight handling capacity at the interna tional airports in Abu Dhabi, 
Dubai, and Sharjah and c onstruction of the new Al Maktoum Intern ational Airport at Jebel Ali port;  
expansion of port cargo-handling capacity;  constructi on of intra-emirate metro systems or light rail 
transport systems in Abu Dhabi and Dubai;  cr eation of a rail network covering the UAE, and 
eventually the GCC countries;  and improvements in bus services. 
118. Each emirate has an independent emirate-wide transport policy.  Various federal authorities, 
such as the National Transport Authority (NTA) a nd the General Civil Aviation Authority (GCAA), 
are responsible for inter-emirate a nd international transport policy at  the federal level.  The NTA, 
which replaced the Ministry of Transport under Fe deral Law No. 1 of 2006, is in charge of setting 
general policies and regulations re lated to inter-emirate and inte rnational land (road and railway) 
transport and international maritime transport.  Th e GCAA was set up in 1996 and is in charge of air 
transport in the UAE. 
119. At the emirate level, the Department of Tran sport (DOT) is responsible for all transport-
related matters and transport polic y and development in Abu Dhabi.37  In Dubai, transport matters are 
regulated by Dubai Roads and Transport Authority (land and maritime transport), and the Dubai Civil 
Aviation Authority (DCAA) and Duba i Airports (air transport).  
(b) Air transport and airports 
Air transport services 
120. The UAE's air transport industry grew continuous ly during the review period.  In 2011, the 
UAE had a total of six national ai rports and five national carriers.38  The UAE plans to become a 
global transport hub by investing around AED 500 billion (U S$136.12 billion) in the aviation industry 
over the next decade.  It intends to capitalize on its transport and communications infrastructure by 
introducing new aircraft for the five UAE flag ca rriers, huge investments in new airport capacity 
throughout the seven emirates, and plans for Abu Dhabi to become a regional centre for aircraft 
maintenance, manufacturing, and flight training.  
                                                      
37 Previously, responsibility for Abu Dhabi's transport was held by a variety of entities, both the local 
and Federal, including the General Civil Aviation Authority(GCAA), the Department of Civil Aviation, the Department of Municipal Affairs, and the Sea Ports Authority (SPA). 
38 The five national airports are:  Abu Dhabi Interna tional Airport, Al Ain airport, Dubai International 
Airport, Fujairah airport, Ras Al Khaimah airport, and Sh arjah International Airport.  The five national airlines 
are:  Air Arabia, Emirates Airlines, Etih ad Airlines, FlyDubai, and RAK Airways. WT/TPR/S/262 Trade Policy Review 
Page 86 
  
121. All activities related to civil aviation in the UAE , at the federal level, are managed by the 
General Civil Aviation Authority (GCAA).  An autonomous body, the GCAA ensures safety and 
security for the aviation sector through oversight and the development of regulations.  It also provides 
navigation services, registration, and licensing services for the UAE aviation industry.  The GCAA 
proposes general air transport policy guidelines and re levant legislation to the Council of Ministers, 
and enforces international agreemen ts and conventions.  The aviation authorities at emirate level are 
involved with operational matters at their respectiv e airports.  They represent the interests of the 
stakeholders in each emirate in air services agreem ents (ASA), through participation in preparatory 
meetings, work committees, and exchanges of view s with the GCAA.  For example, Abu Dhabi's 
DOT secures traffic rights in coordination with th e GCAA.  Carriers wishing to conduct commercial 
air transport in the UAE must obtain an Air Operator Certificate from the GCAA. 
122. Cabotage operations, of cargo and passengers, are limited to national airlines;  in practice, 
however, no such operations take place.  Airports ar e the property of the different emirates.  Foreign 
companies may provide certain services, including:  freighter and charter passenger services;  maintenance, repair and overhaul (MRO);  aircraft leasing;  and parts manufacturing. 
123. The UAE has bilateral air services agreemen ts with 144 countries, including 90 open skies 
agreements.  Based on the traffic rights specified in  the respective air services agreements, airlines 
decide their own capacity (frequency a nd aircraft type), subject to appr oval by the authorities.  In 
2009, the UAE joined the IATA air services agreemen t, along with six other countries, in order to 
further liberalize its air space by signing the d eal under IATA's Multilateral Statement of Policy 
Principles.
39  Under this non-binding multilateral agre ement, airlines may merge across borders, 
acquire airlines in other countries, or tap into international equity markets or private equity 
investors.40 
124. The UAE aims to become a global aviation hub,  chiefly by encouragi ng airlines to commence 
and maintain operations in the UAE.  This policy includes developing several key clusters, such as 
airport-related activities and services, aircraft l easing and financing, aircraft maintenance and 
manufacture, as well as other aviation-related activities.  In Abu Dhabi, an airport free zone is being 
established to promote foreign participation in pr oviding aviation logistics.  The governments of Abu 
Dhabi and Dubai recognize the contribution the UAE airline industry makes to the economy;  both encourage major foreign carriers to commit to long-term  presence and seek to continue to attract new 
airlines. 
Airports Abu Dhabi 
125. Abu Dhabi International Airport is the larger of  Abu Dhabi's two airports.  It serves as the 
base and hub airport for Etihad Airways, the Abu Dhabi national airline, and consists of three 
terminals with a total handling capacity of ar ound 12 million passengers annually.  Currently, more 
than 30 scheduled airlines operate from Abu Dh abi International Airport, serving more than 
80 scheduled destinations in 47 countries. 
126. Al Ain International Airport, Abu Dhabi's second airport, serves the Eastern region of 
Abu Dhabi and is used mainly as a cargo hub a nd as a base for low-cost and regional carriers. 
                                                      
39 The signatories of IATA's Multilateral Statement of Policy Principles are Chile, Malaysia, Panama, 
Singapore, Switzerland, and the United St ates.  The agreement has the endorseme nt of the European Union.  In 
total, signatories represent 60% of global aviation.  
40 Online information.  Viewed at:  www.agenda-for-freedom.aero. United Arab Emirates WT/TPR/S/262 
 Page 87 
 
 
127. Abu Dhabi Aircraft Technologies (ADTA), form erly known as Gulf Aircraft Maintenance 
Company (GAMCO), is a major provider of aviation technical services for the commercial and military aviation industries.  The company’s main facilities and operations are to the south-west of 
Abu Dhabi International Airport.  ADTA is a part  of the Mubadala Development Company, wholly 
owned by the Government of the Emirate of Abu Dhabi. 
128. In addition to the Department of Transpor t, Abu Dhabi Airports Company (ADAC) was 
created in 2006 through a mandate from the Executiv e Council of Abu Dhabi, to manage and operate 
Abu Dhabi International Airport and oversee its mu lti-billion-dollar expansion plan.  ADAC has plans 
to create a free-trade zone in the vicinity of Abu Dhabi Airport, as part of the airport's development 
and expansion. 
129. As of July 2011, Etihad Airways operated more  than 1,000 flights per week in 42 countries.  
In 2010, it carried 7.5 million passengers, compared  with 340,000 in 2004, its first full year of 
operation.  In addition to its core activity of passe nger transportation, Etihad earns significant revenue 
from its cargo operation, Etihad Crysta l Cargo, which serves 14 destinations. 
130. Abu Dhabi is investing AED 25 billion to improve its airport infrastructure.  The second 
runway of Abu Dhabi International Airport was comp leted in 2008, and an exclusive Etihad Airways 
terminal was finished in 2009 (Terminal 3).  A mid- field terminal complex (MTC) is currently under 
construction;  upon its completi on, the total airport capacity will rise to 42 million passengers 
annually. 
Dubai 
131. Dubai International Airport was the fastest gr owing airport for international passengers in 
2009, and is one of the busiest in the world in te rms of international passenger and cargo traffic.  
Dubai International is connected to over 220 d estinations across six continents through some 
130 scheduled airlines.  It comprises three terminals,  including Emirates Terminal 3, which opened in 
October 2008.  The new terminal helped boost the airport's operational capacity to 60 million 
passengers per year. 
132. In 2007, the Department of Civil Aviation was restructured, leading to the formation of Dubai 
Airports, the entity responsible for developing and managing Dubai’s airports, and of the Dubai Civil 
Aviation Authority (DCAA), the local aviation regulatory body.  The DCAA oversees the administration and coordination of all matters relating to civilian ai rport operations, including traffic 
rights, operating permissions, flight training, dut y free shops, and cargo.  The DCAA formulates civil 
aviation policies, signs air agreements on behalf of the Dubai Government, authorizes and provides 
landing approval for foreign air transportation and aircraft charters, monitors air-crew, and is 
responsible for licensing travel agencies and restricting the carriage of dangerous goods.  
133. Dubai-based Emirates airline maintained its ranking as the world’s largest carrier of 
international traffic in 2010.
41  Dubai is investing heavily in developing the reach of Emirates.  Its aim 
is to develop Dubai's air transportation industry so that passengers from any city can fly directly to 
Dubai. 
                                                      
41 IATA (2011). WT/TPR/S/262 Trade Policy Review 
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134. In 2008, Dubai International Airport opened Termin al 3, adding 1.5 square kilometres to the 
airport's structures.  A third concourse is being built,  and will push capacity to 75 million travellers a 
year.  The focus on boosting capacity at Dubai Inte rnational Airport is in  tandem with a gradual 
transfer of airlines over the next decade to Al Maktoum International Airport, in Jebel Ali.  
Completion of the new airport envisages a capacity of  up to 160 million travellers a year and five 
runways, with the aim of making it the largest airport in the world.  
Sharjah 
135. Sharjah International Airport, the UAE's oldest  airport, is an important cargo hub and trans-
shipment point in the region, especially for in termodal cargo arriving by sea and air-freighted 
onwards.  Landing fees and basic handling charg es are considered competitive compared with 
regional standards.  A major expansion programme is  expected to quadruple its capacity.  It is run 
autonomously by the Sharjah Airport Authority.  Non-aeronautical activities (e.g. duty-free shops, car rentals, currency exchange) are generally outsourced , as well as certain aeronautical services, such as 
maintenance operations, and fire and crash rescue. 
(c) Maritime transport and ports 
136. Due to its strategic location, the UAE has over 30 ports, of which 15 are commercial.  These 
include container-handling facilities, oil termin als, industrial ports, and fishing ports.  In 
2009, the 
UAE ranked 23rd in the world in terms of ship owne rs with 9.3 million dead weight.  In 2010, the 
commercial fleet under UAE flag totalled 1.6 milli on gross tonnages (GT).  The UAE's ports export 
mainly oil and gas, but also raw materials and fini shed goods.  Imports cons ist of intermediate and 
consumer goods, as well as a significant re-export trade within the Gulf regional, East Africa, and the 
Indian subcontinent. 
Maritime transport 
137. The NTA's Maritime Transport Sector manages the ship registry and seafarers licensing, 
issues navigational licences, monitors compliance with  international standards, and levies fees.  The 
NTA is also in charge of all security, seaworthiness, and communications aspects of marine 
navigation, as well as compliance with internationa l standards.  The regulation of port and shipping 
services is shared between the NTA and the respectiv e port authority of each emirate.  For purposes of 
regulation, a distinction is made  between foreign flag vessels calling at UAE ports;  national flag 
vessels;  and foreign flag vessels operating in UAE terr itorial waters, mainly in the context of offshore 
projects (e.g. Dubai Maritime City, Palm Island) as we ll as pleasure craft.  In addition, in Abu Dhabi, 
the Department of Transport is responsible for re gulating all intra-emirate maritime transportation, 
such as ferry services between and among the Abu Dhabi mainland and islands. 
138. 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.  It covers, inter alia,  vessel registration and ownership;  crew issues and 
maritime insurance;  safe operation of vessels;  p ilotage and towage;  and marine accidents salvage.  
The law is applicable to all the emirates and is b ased on maritime principles set out in international 
conventions.  In addition to the Maritime Code, seve ral 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. United Arab Emirates WT/TPR/S/262 
 Page 89 
 
 
139. The UAE has adhered to the following inte rnational treaties and conventions:  IMO 
Amendments 1993;  SOLAS Convention 1974;  SOLAS Protocol 1978;  LOAD LINES Convention 
1966;  TONNAGE Convention 1969;  COLREG Conve ntion 1972;  STCW C onvention 1978;  SAR 
Convention 1979;  INMARSAT Convention 1976;  INMARSAT OA 1976;  LC 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. 
140. To register a vessel in the UAE with a UAE fl ag, the vessel must be 51% owned by a UAE 
national or a company with its management based in the UAE.  Exceptions to the management rule 
are allowed in the case of compani es based in Arab League countries.   Foreign owners may register 
their vessels in the UAE with a maximum of 49% (fore ign) ownership.  If a UAE vessel is sold to a 
foreign entity that is located outside the UAE a nd owns over 49% of the vessel, the UAE registration 
must cancelled.   
141. The authorities indicated that the restrictions  noted above would be phased out through new 
legislation currently under consideration.  In ear ly 2011, the Federal Nati onal Council approved major 
amendments to Federal Law No. 26 of 1981 (Maritime  Law).  Under the draft law, foreign vessels 
with 100% ownership would be allowed to re gister under the UAE flag and benefit from, inter alia , 
zero taxation and easier movement between ports, and be part of the International Maritime 
Organization's white list as UAE vessels.42   
142. According to the authorities, the UAE aims to ha ve its maritime sector among the top five in 
the world.  In its strategic plan 2011-2013, the National Transport Authority aims to, inter alia , 
increase the size of the marine fleet registered under the UAE's flag and to increase the rate at which 
marine vessels are inspected so as to support both the security and environmental aspects of maritime 
transport. 
143. The UAE's fleet comprises all ships registered in the UAE with 100% ownership by UAE 
nationals or by companies with at least 51% of "n ational capital".  Only ships registered in the UAE 
may conduct cargo or passe nger cabotage operations. 
144. Foreign flag vessels may operate in UAE territori al waters, mainly in the context of offshore 
projects (ex. Dubai Maritime City and Palm Island).  Unless they obt ain a waiver, at the discretion of 
the NTA Chairman, 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 mu st have residency visas.  Foreign companies must 
obtain approval from the NTA in the form of a licence.  All UAE flag ships operating must be classed under one of the recognized organizations of the In ternational Association of Classification Societies 
(IACS).
43  In addition, foreign ships must not be olde r than 25 years, and local ships must receive 
IACS approval issued within five years. 
                                                      
42 The so-called White List of countries compri ses IMO members deemed to be giving "full and 
complete effect" to the revised STCW Convention (International Convention on Standards of Training, Certification and Watchkeepin g for Seafarers (STCW 95)). 
43 The classification process requires the periodic evaluation of a vessel to determine its compliance 
with the applicable rules to ensure the safety of life, property, and the environment.  For a vessel to remain 'in class' it must meet th e applicable requirements.  WT/TPR/S/262 Trade Policy Review 
Page 90 
  
145. The United Arab Shipping Company (UASC) is  the largest container carrier operating from 
the Middle East.  It was established jointly by the six GCC states;  the UAE Federal Government 
owns 10.96%.  A number of other domestic shippi ng companies are partly or fully owned by the 
Federal Government or by the governments of the emirates, including:  the Abu Dhabi National 
Tanker Company  (ADNATCO), the National Petroleum Construction Company, and the National 
Marine Dredging Company (all owned by the Federa l Government);  Etisalat and Delma Cooperative 
Society (owned by the Abu Dhabi Government);  and the Arab Maritime Petroleum Transport 
Company which is owned by the Abu Dhabi Gove rnment, the Dubai Govern ment, and nine other 
Arab countries. 
146. The UAE's shipping agency and freight forwar ding market comprises several companies.  
One of the world's largest shipping  agencies, the Gulf Agency Compan y (GAC), is based in the Jebel 
Ali Free Zone. 
Ports 
147. UAE ports are mostly regulated and run by the respective emirate authorities.  Most services 
are provided by the managing company, although outsourcing is also used.  Foreign participation 
remains limited except in free zones, which is one  of the reasons why many main ports have an 
adjacent free zone. 
148. DP World’s flagship terminal, Jebel Ali, was th e world’s 9th largest container port in 2010.  It 
has a current capacity of 14 million TEU (twenty-fo ot equivalent container units) and work is under 
way to construct a 400 metre quay extension at Jebel Ali Port, increasing capacity at the facility by an 
additional one million TEU.  The expansion, expected to be concluded by the end of 2012, will permit 
Jebel Ali to handle up to six vessels of 15,000 TEU  simultaneously, hence improving efficiency and 
reducing turn-around times.  
149. The port of Fujairah is one of the top three bunkering ports in the world alongside Singapore 
and Rotterdam.  Private tank storage, principally for refined petroleum products, is due to increase 
from 3 million cubic metres (121 tanks), to 8 milli on cubic metres (262 tanks) by the end of 2012.  
There are 2,340 metres of fully-equipped oil berths already operational, with a further 1,000 metres 
going to tender.  Further expansion is planned:  to the north of the port, the Abu Dhabi Crude Oil 
Pipeline (ADCOP) project, which involves the transport of crude oil through a 360-kilometre land pipeline, is expected to cater for 60% of the UAE ’s total crude oil exports.  For the completion of 
future projects, including a new refinery to  complement the ADCOP project, an additional 
225 hectare of land has been reclaimed from the sea. 
150. Port Zayed is the main gateway for container and general cargo vessels in Abu Dhabi.  Other 
ports in Abu Dhabi, include:  Mussafah Port, which services mainly smaller vessels, tugs, barges and 
service craft;  and Khalifa Port and Industrial Zone  (KPIZ), which is under c onstruction and expected 
to be completed by 2013.  The Khalifa Port and In dustrial Zone will be developed in five phases and 
will include a container-handling terminal and pier s for handling raw and bulk cargos.  The KPIZ will 
replace Abu Dhabi's largest existing port, Port Za yed by 2013.  The KPIZ will offer 100% foreign 
ownership to companies and individuals. United Arab Emirates WT/TPR/S/262 
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151. Responsibility for the regulation and operation of  Abu Dhabi's ports, previously held by the 
Sea Ports Authority, has been devolved to the Department of Transport (Maritime) and the Abu Dhabi Ports Company (ADPC) respectively.  Port terminal  operations in Abu Dhabi are the responsibility of 
Abu Dhabi Terminals, a joint-venture company owned by ADPC and Mubadala of Abu Dhabi.  
DP World, which has a management agreement with Abu Dhabi Terminals is the de facto operator of 
Port Zayed. 
152. The main ports in Sharjah are Port Khalid, Al Hamariah Port, and Khorfokan, 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 governed 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.  The port of Ajman, wh ich also services the Ajman Free Zone situated in 
the port, has eight berths designed to handle both co ntainer and general cargoes.  The port is regulated 
and managed by the Ajman Port Authority, wh ich has also set up two dry docks to provide 
maintenance and repair services.  Port Saqr, in Ra 's al-Khaimah, specializes in the transportation of 
cement, marble, and gravel from nearby quarries a nd factories.  In 2004, Ra's al-Khaimah Port 
Authority awarded the Kuwaiti firm KGL a US$45 milli on contract to build, ope rate, and manage its 
container terminal at Port Saqr for 21 years. 
(d) Road and railway transport 
153. The UAE land transport sector, including highways and railways is regulated by the National 
Transport Authority (NTA), formed under Federa l Law No. 1 of 2006.  The NTA is the Federal 
Authority in charge of developing land transpor t regulations and for granting licences to relevant 
transport bodies, land transport infrastructure compan ies and operators relating to highways, railways, 
and all modes of land transport for federal inte r-emirates transport and international transport 
movements.  The NTA also issues safety certificates, reviews and accepts safety management systems (SMSs) and develops railway standards for the UA E.  Federal Law No. 9 of 2011 was enacted to 
strengthen the governance of the overall land transport sector.  According to the NTA's strategic plan 
2011-2013, the Authority aims to raise the efficien cy of land and railway transport and guarantee its 
sustainability by developing federal legislati on according to international best practices.  
154. The UAE encourages international competition in la nd transport to achieve cost-effectiveness, 
use best practices, follow international standards, a nd promote technology transfer to the UAE.  This 
approach supports the UAE Vision 2021 objective to be one of the best countries in the world by 
2021.  Under its 2030 plan, Abu Dhabi seeks to transf orm itself into "Greater Abu Dhabi" by linking 
the city to the large-scale mixed-use developments  currently under construction on the mainland as 
well as offshore.  The Government of Abu Dhabi has earmarked AED 98 billion for infrastructure, 
tourism, and economic developm ent in the Western Region. 
155. Within Abu Dhabi, the Department of Transport is responsible for:  regulating the Abu Dhabi 
public transport systems and infrastructure;  the main tenance and construction of the main roads;  and 
the operation of public buses.  The Department also  has plans to implement rail projects within the 
emirate.  On the basis of the Abu Dhabi 2030 pl an, the Department of Transport prepared the 
Abu Dhabi Surface Transportation Master Plan (STMP)  and a strategic transport plan for 2012-2016.  
This is expected to help Abu Dhab i develop a metro system and on-street light-rail transit for the city.  
Under the STMP, together with the introduction a nd expansion of bus services, the role of public 
transport in Abu Dhabi and Dubai will be substantially enhanced.  The investment plans seeks to 
involve the private sector in the fund ing, implementati on, and operation. WT/TPR/S/262 Trade Policy Review 
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156. The UAE's highway network comprises about 4,000 km of asphalt paved roads.  Road and 
other public transport, including inter-emirate roads are regulated by the NTA and by each emirate transport entity.  All road transport companies mu st be majority-owned by UAE nationals, although 
they may employ foreign drivers. 
157. Federal Law No. 2 of 2009, established the Etihad Rail Company (formerly known as 
Union Railway Company) with a mandate to manage the development, construc tion, and operation of 
the UAE’s national railway, with capital of AED 1 billion (US$272m).  The railway will link the 
principal centres of the UAE, covering a network of  1,200 km stretching across all seven emirates.  
Initially, it will cater to freight transport, with  passenger services being added at a later stage. 
158. The Dubai metro was launched in September 2009;  the cost of the project was 
US$7.6 billion.  The first two lines of the Dubai metr o are operational, and expansion of the system is 
planned.  The Abu Dhabi and Dubai metro systems ar e to be integrated eventually, into a railway 
network that will link up to a GCC railway system .  By 2017, the GCC railway system will help 
connect the six GCC countries, with a total of 2,11 7 km of railway, and w ill be mixed traffic use 
(freight and passenger) with priority given to freight. 
(iv) Tourism 
159. For the past decade, tourism has become a corn erstone of the UAE's plan for a diversified 
economy.  In 2009, tourism capital investment was around AED 69 billion.  Travel and tourism contributed an estimated 7.4% of GDP in 2009,  and 11.7% of UAE non-oil GDP, and employed some 
158,262 people, despite the sector being greatly affect ed by the global financia l crisis, with revenues 
plunging by 16% in 2009.  
160. The UAE is an attractive destination for travel  and tourism, with good infrastructure.  The 
WEF ranked the UAE first in the Middle East region in  terms of tourism receip ts, fourth in terms of 
its air transport infrastructure, and eighth in te rms of the Government prioritizing the travel and 
tourism sector.
44  However, there is room for improvement  with respect to market access and policy 
rules and regulations. 
161. Dubai has positioned itself as a regional tourism hub, accounting for around two thirds of total 
tourism revenue in the UAE, followed by Abu Dh abi (16%) and Sharjah (10%) (Table IV.10).  
Fujairah and Ras Al Khaimah represent the remainder.   Most tourists to the UAE are Europeans, with 
around one third from GCC countries. 
162. Until 2008, the tourism sector in the UAE was regulated at the emirate level only.  Currently, 
it is regulated at both the emirate and federal levels.  The UAE National Council for Tourism and 
Antiquities (NCTA) was established under Federal Law No. 6 of 2008 and became operational as a 
federal entity in 2009.  The Council's main role is  to promote the UAE's tourism sector within the 
country and overseas, and help coordinate the UAE tourism-related policies at the federal level.  
However, policy-making and issuing tourism licences in the UAE is at emirate level.45 
                                                      
44 World Economic Forum (2011). 
45 National Council for Tourism and Antiquities online information.  Viewed at:  
http://www.uaetourism.ae/en/. United Arab Emirates WT/TPR/S/262 
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163. Planning, supervision, and development of the tourism sector in Dubai is under the Dubai 
Department of Tourism and Commerce Marketing (DTCM).46  This includes licensing and 
classification of hotels, hotel apartments, tour operator s, travel agents, and all other tourism services.  
However, Federal Law No. 6 of 2006 regulates licen sing procedures in the tourism sector.  There are 
four types of tourism activities in Dubai, each requi ring a licence:  general sales agent, travel agent, 
outbound tour operator and inbound tour operator. 
Table IV.10 
Hotel indicators, 2000, 2005, and 2010 
(Number of US$ million) 
    Average annual percentage 
change over the period 
 2000 2005 2010 2000-05 2005-10 
Number of hotels      
Dubai 265 407 573 54% 41% 
Abu Dhabi 49 55 115 135% 109% 
Sharjah 23 57 102 148% 79% 
Ras Al Khaimah .. 6 42 .. 600% 
Fujairah .. .. 13 .. .. 
Ajman .. .. 22 .. .. 
Hotel revenues       
Dubai 715 2,403 3,613 236% 50% 
Abu Dhabi .. .. 1,151 .. .. 
Sharjah 43.5 88 131 102% 49% 
Ras Al Khaimah .. .. 55 .. .. 
Fujairah .. .. .. .. .. 
Ajman .. .. 38 .. .. 
 
.. Not available. 
 
Source: Information provided by the authorities. 
164. Dubai's traditional niche tourism activities ha ve been in shopping, leisure, and business 
tourism.  More recently, its market has been expa nding to include sports, eco, healthcare, and cruise 
tourism.  More than 30 entertainment resorts and theme parks are being deve loped in Dubai with a 
projected investment of AED 228 billion;  they incl ude the Dubai metro;  Dubailand;  Dubai Sports 
City;  Burj Dubai;  and the World.47 
165. Abu Dhabi Tourism Authority (ADTA) has b een responsible for the development and 
promotion of Abu Dhabi’s tourism industry since 2004.48  The ADTA’s activities include:  the 
regulation and monitoring of the tourism industry;  infrastructure upgrade and product development;  
destination marketing;  the issuance of tourism licences;  and the setting up of classification standards.  Tourism in Abu Dhabi is regulated by Law No. 13 of 2006, which requires tourism business providers to obtain a licence from the ADTA in order to set up any tourist-related business. 
                                                      
46 Dubai Department of Tourism and Commerce Marketing online information.  Viewed at:  
http://www.dubaitourism.ae/. 
47 For a detailed account of Dubai's resorts and theme parks, see WTO (2006), p. 71.  Also see: 
http://www.defin itelydubai.com/. 
48 Abu Dhabi Tourism Authority online information.  Viewed at:   http://www.visitabudhabi.ae/en/adta. WT/TPR/S/262 Trade Policy Review 
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166. Business tourism remains a vitally important market segment for Abu Dhabi, and the ADTA 
is engaged in increasing the significance of leis ure tourism and establishing Abu Dhabi as a regional 
culture hub.  The emirate's culture focus is centre d on Saadiyat Island (the Island of Happiness), an 
AED 99.3 billion commercial, residential, and leisure project off the coast of Abu Dhabi.  The project 
is developed by the Tourism Development and In vestment Company (TDIC), a large developer of 
major tourism destinations in Abu Dhabi.  The project will house the first branch of the Louvre 
Museum outside Paris, a Guggenheim Museum, and the Sheikh Zayed National museum.  The island 
is expected to attract 1.5 million visitors a y ear when completed by 2018 and will be home to around 
160,000 people. 
167. Sharjah, Ras Al Khaimah, Ajman, Um Alquain , and Fujairah have been promoting their 
tourism sectors with strong campaigning to develop the industry and attract more tourists.  The major 
attractions of these emirates are heritage, architectur e, natural landscapes, leis ure, sports, and facilities 
for business conferences and exhibitions. 
168. Most tourism advertising campaigns are launche d individually by the emirates.  The UAE 
Government has started to raise awareness of the country by promoting the complementary tourist 
attractions of its emirates throug h a campaign of "seven emirates, one  destination".  The main markets 
for visitors to the UAE continue to cover traditi onal countries in Western Europe and the GCC, while 
new markets are being explored in North America,  China, and the Asian sub-continent.  The UAE 
aims to expand its tourist base through the develo pment of budget and mid-range hotels as well as 
luxury hotels. 
169. In its GATS commitments, the UAE has bound without limitations, provision of hotel and 
restaurant services through modes 1 to 3.  Commercial presence is permitted with a maximum foreign equity participation of 49%. 
(v) Construction services 
170. The UAE's private construction sector suffered a major downturn as a result of the 2008-09 
global financial crises.
49  In particular, Dubai's real estate sector suffered a major price correction 
from the previous real estate bubble and values dropped to 50%.50  The crisis was exacerbated by the 
large number of new units on the market, coupled with a slowdown in residential and business 
demand.  In Abu Dhabi, real estate prices have fall en by 40% on average since peaking in June 2008.  
The tightness of supply of all types of property in Abu Dhabi had resulted in sky-high prices and rents. 
171. Prior to the crisis, the UAE has witnessed a proliferation in prope rty development and a 
construction boom, which helped garner the emerge nce of conglomerates in this sector.  During 
2007-08, Dubai had more than 30% of the worl d's cranes working on its ambitious mega-
developments.  By the end of 2009, there were more than 750 sky scrapers in Dubai. 
                                                      
49 In the course of this Review, the UAE authorities indicated that federal government construction 
projects has not been affected by the crisis. 
50 Financial Times , "Economy:  Recession exposes need for reform", by Simeon Kerr, 20 July 2009.  
Viewed at:  http://www .ft.com/cms/s/0/5bfacef4-7270-11de-ba9 4-00144feabdc0.html#ixzz1Vqqs7LiE. United Arab Emirates WT/TPR/S/262 
 Page 95 
 
 
172. The UAE boasts some world-renowned buildings an d developments, such as:  Burj Khalifa, 
the world's tallest building by EMAAR, the region's largest developer;  Palm Jumeirah, the world's 
largest man-made island by Nakheel;  Masdar, the wo rld's first carbon-free city;  the Dubai Mall, the 
world's largest shopping mall;  and Ski Dubai, the wo rld's first indoor ski resort.  In addition, fully-
integrated communities like Jumeirah Lake To wers by Nakheel, Downtown Dubai by EMAAR, 
Al Raha Gardens by Aldar properties in Abu Dhabi,  and Al Hamra Village in Ras Al Khaimah have 
been created. 
173. One of the largest Dubai-based developers, Duba i World (DW)'s subsidiary Nakheel has been 
hard hit by the financial crisis.  The Government of Dubai enacted a special insolvency regime for 
Nakheel through the Dubai Financial Support Fund  (DFSF).  Created in July 2009, the DFSF 
provided Nakheel US$8 billion in new equity and conve rted the company's existing debt into equity.  
In order to protect DW's non-real-estate assets, th e Government of Dubai currently owns Nakheel 
directly.  More recently, Nakheel announced a comp rehensive recapitalization plan of its debt and 
liabilities.  The plan enables Nakheel  to offer creditors 100% of agreed amounts owed and to fulfil its 
obligations to customers through the prom pt completion of near-term projects. 
174. Established in 2007, the Real Estate Regulator y Authority (RERA) has full legal authority to 
regulate the real estate sector in Dubai, and is part  of Dubai's Land Department.  The RERA's main 
responsibilities include:  licensing real estate agents; and regulating and register ing rental agreements 
and owners associations.  To boost the UAE's real estate industry, the RERA has embarked on a code 
of governance for the real estate development indus try, to promote transparency and disclosure, 
investor protection, performance optimization, and ri sk management practices in the industry.  Under 
the RERA's ambit, the Real Estate Investment Promotion Center encourages investments in Dubai's real estate sector through its Tanmia and Tayseer programmes, which provide investors with financial 
facilities.
51 
175. As a result of the crisis, the construction sector has been affected by disputes between 
investors, developers, and contract ors.  The disputes range from disgr untled retail investors in planned 
developments that are unlikely to materialize, to contractors complaining of missing payments.  
According to the Dubai Chamber of Commerce, its  arbitration centre handled 280 dispute cases in the 
first ten months of the 2010.  From January un til end September 2011, the centre handled 315 dispute 
cases.  Major state-linked developers have re portedly offered only 65% of money owed and no 
payment was made until 2010. 
176. The deflating real-estate bubble continues to rest rain prospects for recovery, particularly in 
Dubai.  Nevertheless, construction has been iden tified as a vertical building block in the Dubai 
strategic plan for 2015.  A series of measures have b een put in place to improve the real estate sector 
in the UAE.  In Dubai, for example, the Ruler promulgated Decree No. 22 of 2011 waiving up to AED 300,000 in mortgage repayments for borrowers that repay home loans ahead of their maturity 
date.  However, as a counterpart to this incentive,  as of January 2011, Dubai imposes a mandatory 5% 
housing tax on all residential units.  In Abu Dhabi,  an allocation of AED 7 billion from the emirate's 
2011 budget is to be distributed to c itizens in the form of housing loans.
52 
                                                      
51 For more information see: http://www.dubailand.gov.ae 
52 Arabian Business, "Home loan fees waiv ed on early settlement", 17 July 2011. WT/TPR/S/262 Trade Policy Review 
Page 96 
  
177. While construction remains depressed in Dubai, it has been growing rapidly in Abu Dhabi, 
where the target is to triple the size and population of the city by 2030.  To achieve this goal and 
accommodate the population increase, real estate pr ojects in excess of US$140 billion are in the 
pipeline.  These include Sowwah Island, which is intended to be Abu Dhabi’s new central business 
district.53  Other emirates, like Ajman, Ras Al Khaimah and Sharjah, have also undertaken large-scale 
construction projects. 
(vi) Trade in business and professional services 
178. In its GATS Schedule of specific commitments , the UAE bound measures affecting the cross-
border supply, consumption abroad, and commercia l presence (modes 1-3) of:  accounting, auditing 
and book-keeping services;  certain taxation services;  architectural, engineering, urban planning and 
landscape services;  and veterinary services. 
179. The UAE's labour market is generally open to fo reigners, and it is estimated that over 90% of 
the UAE workforce is foreign.  However, althou gh the exercise of several professions is allowed 
provided a licence is obtained, the use of a local servi ce agent is required, which adds to the cost and, 
to a certain extent, discourages market entry.  In this respect, foreign professionals are allowed to 
practice business services and professions such as auditing, medical services, engineering, legal 
practice and consultancies, com puter consultancies and similar services only by setting up “sole 
proprietorship” businesses.  To obtain a licence appli cants require:  a valid UAE residence permit;  a 
professional licence from the government of the emir ate in which they intend to operate;  and a 
service agency contract with a local services agent that is a UAE national.  The agent's duties and 
obligations towards the foreign professional are limite d to facilitating the practice of an activity in the 
emirate, including assisting in obtaining and renewing work permits issued by the Ministry of Labour, 
and other government authorities.  The local service agent holds no share in the “sole proprietorship” 
firm and does not participate in its management. 
(a) Legal services 
180. Legal services are regulated both at the emirat e and federal levels.  Federal Law No. 23 of 
1991, concerning the Lawyers Ordi nance and amendments thereof, regulates the law profession in 
five of the seven emirates.  Under this law, lawyers are licensed federally and are free to move within the UAE, except for the emirates of Dubai and Ra's  al Khaimah.  A local licence is required to 
practice law in these two emirates.  Dubai requires lawyers to have an office in Dubai in order to appear in a Dubai Court. 
181. The request for a licence is presented to the Minist ry of Justice through a local law firm.  If all 
procedural conditions are met, the Ministry of Jus tice registers the applicant as a lawyer and allows 
him to practice, but only as an employee of the local law firm.  Licences for both foreign and local 
lawyers must be renewed annually.  In principle,  they may be revoked only for professional reasons .  
The UAE does not have a Bar Association. 
182. Establishment of a law firm, which must be 100% owned by UAE nationals, is regulated at 
the federal level.  In the five emirates applyi ng Federal Law No. 23 of 1991, foreign lawyers may 
offer legal advice on foreign, international, and lo cal law, and may represent clients in a court of 
appeal for a maximum of four years, and in a court of first instance for a maximum of eight years.  To represent a client in court, a foreign lawyer must obtain a permit from the Ministry of Justice, which 
                                                      
53 Financial Times , "Real estate:  Congested city hopes for relief in vast construction projects", by 
James Drummond, 28 October 2009.  Viewed at:  http://www.ft.com/cms/s/0/8c4dc7c2-c28f-11de-be3a-
00144feab49a.html#ixzz1VqAxhlzW. United Arab Emirates WT/TPR/S/262 
 Page 97 
 
 
requires a diploma from a foreign professional body rec ognized by the Ministry of Education.  The 
foreign lawyer must be registered in the bar of  his home country, have 15 years of experience, and 
meet conditions of good reputation.  There is no  prior residency requirement.  Firms of legal 
consultants may not represent client s in courts.  Foreign lawyers may not appear in the Supreme 
Federal Court and in courts of cassation. 
183. In Abu Dhabi, international law firms ar e regulated under Decree No 30 of 2006.  
International law firms may open a branch in Abu Dhabi subject to several requirements:  practicing law for at least 15 years outside the UAE;  having at least 50 partners across the board in all its offices;  and obtaining approval of the Executive Council of Abu Dhabi.  The request for a licence 
must be filed with the Department of De velopment and Planning in Abu Dhabi.  
(b) Accounting and auditing services 
184. Accounting services are regulated at federal level.  Federal Law No. 22 of 1995 and the 
relevant ministerial decisions regulate auditors  and certified accountants, firms and individuals.  
Accountants must be registered in a particular em irate.  They may exercise throughout the UAE, but 
must obtain a professional licence from the relevant authorities of the emirate where they wish to 
practice.  A licence is granted for each ac tivity, rather than for each individual. 
185. The Accountants and Auditors Association (AAA) , established by Resolution of the Ministry 
of Labour and Social Affairs No. 227/97, is the professional body for accountants in the UAE.  Auditors are not obliged to register with the AAA. 
186. Foreign accounting firms have traditionally b een able to practice audit and accounting 
services in the UAE.  In 2008 (the latest available information), some 263 foreign individual auditors, 
264 local (or GCC) individual auditors, 65 local fi rms, and 12 foreign firm s were operating in the 
UAE.  These firms were established before 1995.  No new firms have been established since as a 
consequence of the introduction of the emiratizatio n policy in 1997, by which foreign ownership in 
new foreign firms established in the UAE was limi ted to 75%.  This requirement was also made 
applicable to firms established before 1995, which were given a transition period, until 2010, to find 
local partners for the remaining 25% participation in the firm. 
187. Foreign accounting firms operating in the UAE ma y do so by opening a branch.  Branches 
established before 1997 were allowe d to be 100% foreign-owned, un til 2010, and have several sub-
branches operating in the various emirates.  After 20 10, they are obliged to take a local partner and 
may retain maximum ownership of 75% of property.   As noted, foreign firms must have a local 
services agent.   
188. The Register of Auditors includes local, GCC, and other foreign natura l persons and firms.  
There are three categories in the Register:  practisi ng auditors;  non-practising auditors;  and trainees 
(only for nationals).  Registration conditions for fo reigners include:  a university degree in accounting 
or an equivalent degree;  three years of experience in accounting;  five years of registration with an 
auditing professional body recognized by the Ministry  of Economy;  and evidence of a partnership 
with a UAE citizen or company or a certificate of employment. 
189. One partner or manager in every auditing firm  must be a UAE national, registered as a 
practicing auditor in the Registry;  all other partners  must be registered as practicing auditors.  If one 
of the partners is a firm established outside th e UAE, that foreign firm must hold a certified licence 
for practicing as an auditor in its country of registration. WT/TPR/S/262 Trade Policy Review 
Page 98 
  
(c) Engineering services 
190. The engineering profession is regulated at emirat e level.  A foreign engineering consultant or 
contractor may operate in the UAE through a joint-venture with a local firm;  a partnership with a local engineering firm;  or a foreign branch with a local service agent.  In some cases, particularly 
those concerning large engineering projects, foreign engineering contractors may be invited to tender 
without having to incorporate locally. 
191. Licences of foreign branches are generally limited to the fields of specialization not 
commonly provided by local engineering firms.  The h ead office of the foreign firm must have existed 
for not less than 15 years, and carried out a number of  projects of large technical and financial value.  
The firm's manager must be registered in the E ngineers Society of the UAE and have no less than 
15 years of experience in the practice of the profession.  The foreign branch must have technical staff for each of the licensed fields of activity to be prac ticed;  it must be led by an engineer with no less 
than 15 years in the specializati on, assisted by a number of assistant engineers (consistent with the 
volume of the current works assigned to the firm) w ith no less than seven-years' experience.  The head 
office must also undertake to appoint the required st aff to reside in the emirate granting the licence. 
192. All engineers, local and foreign, must be regist ered with the Engineers Society of the UAE.  
Typically, a licence for the practice of engineering consultancy requires the applicant:  to be a UAE 
national of good conduct and reputation;  to hold a BSc. in engineering from a recognized university 
in one of the engineering fields;  to have at least three years of experience in the specialized field after 
obtaining the university degree;  and to be a member of the engineers' association of the country of 
study. United Arab Emirates WT/TPR/S/262 
 Page 99 
 
 
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