WORLD TRADE  
ORGANIZATION   
WT/TPR/M/262 
9 May 2012 
 (12-2500) 
Trade Policy Review Body 
27 and 29 March 2012  
 
 
 
TRADE POLICY REVIEW 
 
UNITED ARAB EMIRATES 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Eduardo Muñoz Gómez (Colombia) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPR ESENTATIVE OF THE UNITED ARAB 
EMIRATES   5 
III. STATEMENT BY THE DISCUSSANT 8 
IV. STATEMENTS BY MEMBERS 12 
V. REPLIES BY THE REPRESENTATIVE  OF THE UNITED ARAB EMIRATES 
AND ADDITIONAL COMMENTS 37 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 40 
 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by the United Arab 
Emirates are reproduced in document WT/TPR/M /262/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/262 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of the United Arab Emirates was he ld on 27 and 29 March 
2012.  The Chairperson H.E. Mr. Eduardo Muñoz Gó mez (Colombia) welcomed the delegation of the 
United Arab Emirates headed by H.E. Mrs. Lubna Bi nt Khalid Al Qasimi Minister of Foreign Trade, 
and the discussant, Mrs. Reenat Sandhu (India). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by th e United Arab Emirates was contained in document 
WT/TPR/G/262 and that of the WTO Secretariat in WT/TPR/S/262. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of the United Arab Emirates: the United States;  
Hong Kong, China;  the European Union, Colombia;  Canada;  Argentina;  Japan;  Indonesia;  Turkey 
and India.  The following delegations submitted written questions after the two-weeks deadline: 
Australia, South Africa and Singapore.  
4. The Chairperson noted that the reports of both  the United Arab Emirates and the Secretariat 
showed the liberal nature of that country's trad e regime.  However, the investment regime could 
benefit from greater openness.  Economic performan ce had been affected by the global financial 
crisis;  however, the economy had been recovering since 2010.  The economy of the United Arab 
Emirates, today based mainly on oil, was diversif ying into a number of activities in the area of 
services and industry.  Members welcomed with satisfaction the announced reform of the foreign 
investment regime through the draft Federal Unif ied Foreign Investment Law, and would no doubt be 
interested in obtaining more information about th e sectors in which it was planned to raise the cap on 
foreign investment. 
5. This Review provides an opportunity to exch ange views on matters of interest to all 
Members, including the following: 
 During the first Review of the United Arab Emirates, Members put questions on:  the 
process of harmonizing GCC policies;  the need to use national agents for many activities, including imports and distribution;  the lack of a competition policy;  and 
State control of specific activities.  More information was also requested on technical 
barriers to trade, the operation of the fr ee zones, and enforcement of intellectual 
property rights. 
 In this connection, I should like to emphasi ze that the Secretariat report indicates that 
the investment regime remains considerably more restrictive than the trade regime, as 
foreign participation in any domestic comp any or activity is limited to 49% of the 
capital;  however, up to 100% foreign ownershi p is allowed in the free zones.  Many 
Members have enquired about the plans to increase the limits on foreign investment and to eliminate the requirement of using national agents. 
 As in the previous Review, Members on this occasion were also interested in the 
consolidation of the Gulf Cooperation C ouncil (GCC) and other regional integration 
initiatives.  I am pleased to learn that, during the period under review, the UAE has moved forward in the process of regional in tegration, although the full consolidation 
of the GCC customs union, scheduled for the end of the year, has not yet been 
achieved. 
 I am pleased to note that the UAE has streamlined procedures for processing 
documents and reduced the time required to  clear customs, mainly by introducing WT/TPR/M/262 
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  totally electronic clearance procedures and a risk assessment system.  Nevertheless, 
many delegations raised questions about th e need for imports to be processed by a 
designated trade agent and the application of na tionality restrictions in that respect.  
As was the case six years ago, Members also raised questions about the application and notification of sanitary and phytosanita ry measures and technical regulations to 
the WTO. 
 Regarding the question of competition policy, which was of interest in the last 
Review, I should like to note that, although the UAE has no legislation on this topic, a 
draft competition law, dealing with rest rictive agreements, abuse of a dominant 
position, and mergers and acquisitions , is under consideration by the 
Ministerial Cabinet.  Accordingly, Members have requested the authorities to explain 
how this new law would open up the various markets, particularly in services. 
6. Members have also expressed interest in obtaining more information on the new draft 
legislation in the area of intellectual property ri ghts and further details concerning the programmes 
implemented to improve enforcement of those rights.  WT/TPR/M/262 
 Page 5 
 
 
  II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE UNITED ARAB 
EMIRATES 
7. In accordance with the UAE Vision 2021, unveile d by our leadership with the objective of 
making the UAE one of the best countries in the world by 2021, the UAE Government introduced in 2008 a very innovative methodology of work in all fields including the economy. It consisted of 
adopting strategic plans covering fixed periods of ti me, with strategic goals and operational indicators 
to evaluate the performances of a ll sectors.  At present, we are carrying out our second strategic plan 
(2011-2013), which is dedicated to ensure the successful transition towards "a diversified and 
competitive knowledge economy with national competencies". 
8. For us, focus for the future is not only on becoming the most efficient economy, but also 
considering how best practice knowledge can be embedded in th e economy to create endless 
opportunities and enable sustainable growth. The inco rporation of best practice knowledge will be the 
fundamental way to achieve the vision of our leaders.  
9. Over the span of the last six years, since the UAE conducted its first Trade Policy Review, 
much has changed in the global arena. The damage  resulting from the global economic crisis has been 
all encompassing. The ramifications of this crisis  have had dire consequences on the entire global 
economy. Naturally, the UAE wasn't spared the adve rse effects of the crisis. However, due to the 
sound policies and timely measures that were taken,  especially by the UAE Central Bank during the 
peak and fallout of the crisis, coupled with the solid macroeconomic fundamentals of the UAE driven 
by high oil revenues and government spending we were  able to absorb and overcome the crisis in 
record time. 
10. The UAE has maintained its open markets polici es and did not resort to any protectionist 
measures and maintained its record of not reso rting to any anti-dumping or other safeguarding 
measures, even though it was confronted with such measures by a few of its trade partners. 
11. Since the beginning of 2010 the UAE economy h as been gaining its growth momentum and 
showing strong signs of recovery. The UAE Government  has successfully pursued a strategy to create 
an enabling business environment that is conducive to economic growth. This has contributed to the 
world-renowned status of the UAE as an internati onal centre for trade, finance and services and has 
attracted reputable global companies. The UAE h as always focused on strengthening its stance as an 
international trade hub. 
12. This is evident in the country's 2010 real GDP gr owth rate of 1.4% compared to a negative 
1.6% in 2009. This growth has been propelled ma inly by higher growth achieved by non oil sectors 
that had a 68.6% GDP share in 2010.  In general,  over the last six years, the UAE's GDP has grown 
by an average of more than 3% per annum. 
13. The ongoing efforts by the government to diversify the UAE economy and reduce its 
dependence on the hydrocarbons sector are achieving good results each year. The country has taken 
great strides towards investing in alternative sources of energy such as renewable and peaceful 
nuclear energy. The UAE has been witnessing steady grow th in its foreign trade for the past ten years, 
except in 2009 due to the economic turmoil.  Th e year 2010, however, saw a recovery when the 
UAE's total foreign trade increased by 12.2%.  Rema rkably, it is particularly encouraging to witness 
the UAE's high ratio of merchandi se trade to GDP, which was around 147% in 2010. This serves to 
illustrate the importance of trade to the country's economy.  I am pleased to share with you that the 
value of our total non-oil foreign trade in the first 10 months of 2011 has exceeded US$207 billion, 
which is the highest figure ever attained in our country's history for that period. WT/TPR/M/262 
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  14. Additionally, the UAE's fiscal policy is aimed at strengthening confidence in the economy in 
addition to continuing the diversification strategy  and increasing private sector involvement. From 
2008 to 2010, the consolidated e xpenditure of the UAE Government has increased by around 34%.  
15. The UAE Government continues to play a significant role in developing and promoting its 
economy and business environment.  Its sound trade st rategies and policies have attained the country 
advanced positions in many international trade reports  and indexes. Strongly believing in the integral 
part FDIs play in its diversification strategy, th e UAE Government continues to pursue policies that 
would attract foreign investments. 
16. Moreover, over the last six years, the UAE has reviewed the entire legal framework 
regulating economic activities, defined the strategy  and the goals and fine tuned them as per the 
Federal Government Strategy, drafted laws accord ingly, formulated technical committees consisting 
of all stakeholders both at the federal and local levels.  
17. The objective of such a comprehensive framework  is to provide high quality legislations and 
regulations that would further promote efficiency , transparency and investor confidence in the 
business environment, such as commercial compan ies, SMEs, industry, foreign investment, 
competition and arbitration laws. This framework will align the business environment with the UAE 
2021 Strategic Vision. 
18. To ensure full participation of the business co mmunity in this process, the UAE Government 
constantly exhorts the private sector to provide  comments and inputs on the draft laws. Such a 
participation-based approach underlines the Govern ment's commitment to the public-private dialogue 
on reforming business practices. 
19. Laws that are related to its trade sector, su ch as those pertaining to competition, companies 
and FDI have now reached their final stages of enact ment.  I am pleased to say that the policies and 
measures that have been adopted to attract invest ments have been successful to the extent that the 
UAE was ranked 10
th globally in FDI and technology transf er in the Global Competitiveness Report 
GCI 2011-2012, which was published by the World Economic Forum. 
20. The UAE was also ranked among the top ten co untries in more than 20 competitiveness 
indicators:  third in business costs of crime and violence; fourth in quality of air infrastructure; fifth in wastefulness of government spending; fifth in gove rnment procurement of advanced tech products; 
fifth in flexibility of wage determination; sixth globally in quality of port infrastructure; seventh globally in quality of roads infrastructure, and seventh globally in the burden of customs procedures.  
21. The UAE's Government will continue to uphold its free-market strategy. It is firmly 
committed to pursuing its progressive economic ag enda, focused around economic liberalization, 
diversification and promotion of an effective public -private partnership. It is also committed to 
reviewing all existing policies in order to make them  as resilient, adaptable, and responsive to future 
challenges.   
22. The UAE is one of the advocates of multilatera lism. As a developing economy that thrives on 
free trade, the UAE believes a str ong, rules-based system is the best guarantee against unilateralism 
and protectionism, and provides stability, security, tran sparency, and predictability for traders, and is 
a prerequisite for long-term global economic growth and development.  
23. We deeply regret that the WTO Doha Developm ent Agenda trade round has not yet been able 
to achieve its intended objective of promoting wo rld economic growth by expanding trade and we 
hope countries will find the political will and energy to revive it.  WT/TPR/M/262 
 Page 7 
 
 
  24. The UAE is a founding member of the Gulf Cooperation Council (GCC), which has in turn 
established the "GCC Customs Union" that has been in operation since the beginning 
of January 2003. This Union applies a common external  tariff to all items and a single port of entry.  
The UAE is also member of the Greater Arab Fr ee Trade Area (GAFTA), signed on the 19 February 
1997 and in force since the 1 January 1998. More over, the country, under the GCC umbrella, is 
negotiating the establishment of FTAs with a number of countries and economic blocs. 
25. Reaching beyond its commitments, the UAE has set a global precedent in 2010 when it 
produced a completely voluntary TPR, providing furt her testament to its unfaltering commitment to 
transparency, and its confidence in  the value of such an exercise in improving the quality of trade 
policies. We believe that the multilateral trading sy stem as embodied in the WTO is crucial to the 
continued growth of our economy in this direction. We  assure you that we would continue to play an 
active role to fulfil our obligations, and to strengthen the WTO.   
26. Before concluding, I would like to touch on an  important goal my country is pursuing. The 
UAE is driving connectivity, as well as boosting trade and business, attracting people from all over 
the world to numerous conferences and trade shows we host at home. We feel  that connecting people 
lies at the heart of our vision as a cosmopolitan natio n. In line with this vision, the UAE is bidding for 
World Expo 2020, one of the world's oldest and la rgest international events, that takes place every 
five years and lasts for up to six months. 
27. Expos must be able to not only provide a be nchmark for the human progress made in a given 
domain, but also propose a roadmap for the way forw ard. 2021 will mark the Golden Jubilee of our 
federation. The 2020 Expo gives our young nation the chance to come of age and make a lasting mark 
on the world stage. 
28. The rapid development of the UAE and Dubai s hows what is possible here. We will see the 
same energy and can-do enthusiasm that has built Dubai and the UAE, in microcosm at the Expo site. 
It is this, connectivity, our geographic locati on, and openness to the world that makes Dubai a 
candidate city for World Expo 2020. Our theme "c onnecting minds, creating the future" builds on our 
existing positioning as a crossroad between east a nd west. Your support in ensuring the success of the 
UAEs "World Expo 2020" bid will be highly appreciated.  WT/TPR/M/262 
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  III. STATEMENT BY THE DISCUSSANT (MRS. REENAT SANDHU (INDIA)) 
29. I would like to begin my comments by a brief introduction, highlighting important facts about 
the UAE economy and its performance, which should serve as a backdrop for our discussions this 
morning. I will then touch upon the main trade po licies and practices of the UAE with a view to 
identifying areas where a further elaboration would be helpful.    
30. With a land mass of 83,600 sq. km, the UAE is stra tegically located at the cross roads of Asia, 
the Middle East, Africa and Europe serving as a vital transit point between the East and the West through its access to both the Arabian Gulf and the Indian Ocean. This strategic location has played 
an important part in the emergence of the UAE as a trading nation. The discovery of oil in the 1960's was a historic milestone that gave a further boo st to trade and led to massive infrastructure 
development. The country was the first in the regi on to develop its airport and sea port facilities in the 
60's and since then has recorded robust expansion in transport services to become the main transport 
hub of the region. 
31. A relatively young nation, the UAE was estab lished in 1971 as a federation of seven 
Emirates. In a short span of four decades, the UAE has transformed itself from a small fishing and 
pearling nation into an economic power house. This has been possible through substantial 
industrialization undertaken since 1980. The wealth ge nerated by the country's major natural resource, 
namely, oil has been a major catalyst in this process.   
32. Today, the UAE is a modern and dynamic nati on with over 82% of its population living in 
urban areas with a per capita income of US$36,017. Out of its total population of 8.26 million, only 
1 million are UAE nationals while the rest are expatr iates. As a world class centre for trade, finance 
and services, the UAE has attracted many global companies to set up operations there. It is ranked 
33 out of 183 economies in the 2012 ease of doing business index of the World Bank. Great strides have also been made in the social sectors of educa tion, health care and general welfare of the people.  
33. The UAE has a federal structure. Abu Dhabi, D ubai and Sharjah are the three largest Emirates 
of the UAE in terms of GDP. Abu Dhabi accounts for over 50% of UAE's total GDP, 40% of the 
population and 95% of crude oil and gas production.  Abu Dhabi owns one of the world's largest 
sovereign wealth funds with estimated assets wort h more than US$300 billion. The second largest 
Emirate, Dubai accounts for about one third of UAE 's total GDP and has a more diversified economy 
with a large financial sector and an advanced air transport industry and tourism sector.  Dubai also 
plays the role of regional commercial hub and is an  important transhipment and re-export centre.   
34. Looking at the economic performance of the UAE during the period under review, we 
observe that the UAE economy registered a str ong average annual growth rate of 5.5% during 
2005-08 with its GDP increasing from US$180.6 billion in 2005 to US$314.8 billion in 2008.  This growth was based to a large extent on a successful st rategy of diversification into services, real estate 
and manufacturing.  Non-hydrocarbon GDP grew at an average rate of 8.2% during the same period.   
35. The global financial crisis, however, had a br ief dampening effect on this positive growth 
trajectory. The fall in oil prices combined with a drop  in real estate prices, a slowdown in global trade 
and turmoil in financial markets, led to a contrac tion in GDP by 1.6% in 2009.  An increase in oil 
prices in 2010 coupled with a strong expansion of  5% in the non-oil sectors, supported by counter 
cyclical monetary and fiscal policies applied by the federal government, have helped the UAE to make a successful turnaround as reflected in its 201 0 GDP growth rate of 1.4%. The GDP is projected 
to grow by more than 3% in 2011 led by strong gr owth in tourism, logistics and trade in Dubai; and 
by large public investment spending in Abu Dhabi.    WT/TPR/M/262 
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  36. Structurally, the UAE economy is largely dominated by the oil sector. It has 8.5% of the 
world's oil reserves and fifth largest reserves of gas which are estimated to last more than 100 years at 
current production rates. Though UAE  still relies on oil, it is focusing on diversification as a long term 
growth strategy which has led to a progressive sh ift away from oil to diversified growth in 
manufacturing and trade, along with growth in service sectors like finance, tourism, real estate and 
ICT. As a result, the oil and natural gas sector's  contribution to GDP fell from 37% in 2006 to 31.6% 
in 2010. Manufacturing contributed 9.7% of GDP in 2010, and construction continued to contribute 
11.6% of GDP despite the crisis.  
37. The government is also focusing on growth of services as a means of promoting 
diversification and broad based growth. Services as a whole accounted for 48% of GDP in 2010. The 
services sector is growing rapidly particularly in air and maritime transport, telecommunications and 
tourism. The UAE has one of the largest air tran sport industries in the world which has benefited 
immensely from the country's open skies policy and good civil aviation infrastructure.  
38. In line with its vision 2021 and its federal st rategy 2011-2013, the UAE is taking strategic 
initiatives to establish a knowledge led economy. St rengthening small and medium enterprises to 
provide advanced creative and innovative technologies has contributed to this transition. The non-oil 
economy of the UAE now contributes over 68% of the nation's GDP.   
39. During the period under review , volatility in oil prices made it difficult for the UAE 
government to maintain stable fiscal indicators. Fr om a fiscal surplus of 16.5% of GDP in 2008, the 
UAE economy posted a fiscal deficit of 12.6% of GDP in 2009 due to a drop in oil prices. As oil 
prices picked up, the deficit shrank to 1.3% of GDP in 2010. The IMF has recommended de-linking 
government spending from the volatility of oil prices  and structuring fiscal policy in a manner that 
ensures long term sustainability. It is understood th at the government is considering introduction of a 
value added tax and income tax on companies as we ll as reducing or cancelling some duty exemptions 
granted to companies and government agencies to e nhance revenue. It would be useful to know the 
UAE's plans for implementation of such measures.  
40. Turning now to trade policies and practices, it is  observed that the UAE follows a liberal trade 
regime and improved market access for its produc ts through multilateral trade liberalization and 
bilateral and regional trade agreements rema ins an important trade policy objective.   
41. The UAE's foreign trade continued to perform  well during the period under review with 
exports of goods increasing rapidly between 2006 and 2008 to reach US$210 billion. Imports also 
peaked at US$175.5billion in 2008 with trade surplus reaching US$62.9 billion. Though 2009 saw a 
contraction in both exports and imports of goods du e to the global economic crisis, trade began to 
recover again in 2010, with the surplus in tr ade balance reaching US$50.9 billion. The services 
balance registered a deficit throughout. However, due to a strong trade surplus, the current account 
balance has traditionally shown a surplus. This surp lus was US$11.2 billion or 3.8% of GDP in 2010.  
Foreign exchange reserves fell between 2007 and 2009 before recoveri ng again in 2010 to 
US$32 billion.  
42. The main export product continued to be crude oil. India was the top non-oil export 
destination in 2010, followed by Switzerland, Saudi Arabia, Brazil and Iran. The main import sources 
were India, China, the United  States, Germany, and Japan.  
43. The UAE has aligned its tariff structure with that of the GCC since 2003. The tariff structure 
is relatively simple, comprising 4 ad valorem  tariff rates of 0%, 5% which is the general tariff rate for 
nearly 90% of the tariff lines, and 50% and 100%  applied on alcohol and tobacco. 9.4% tariff lines 
have zero tariffs. The UAE has bound all its tariff lines with a majority of the lines bound at 15%. 
97% of all lines are ad valorem. Alternate or specifi c duties apply to 0.3% of all tariff lines. Since the WT/TPR/M/262 
Page 10  
 
  last review, the average applied tariff rate has fallen from 5.1% to 4.9%. The UAE does not apply 
other duties and charges on imports.  Import prohib itions are applied on 30 tariff lines and another 
244 lines are restricted on safety, religious or mora l grounds.  No import licensing regime is in place.  
44. In 2005, the UAE issued its national legislation on anti-dumping, countervailing and 
safeguard measures contained in the GCC Treaty. No anti-dumping or countervailing measures were 
taken during the period under review an d no investigations were initiated. 
45. Since its previous Trade Policy Review in 2006,  the UAE has accorded high priority to trade 
facilitation. It has streamlined the procedures for preparing documents and reduced the time required 
for clearing customs, mainly by introducing elect ronic clearance procedures and a risk assessment 
system.  However, the UAE still requires that imports  be processed by a desi gnated trade agent who 
can either be a UAE national or a company with at least 51% ownership of UAE nationals. Although 
legislation to enforce agency contracts was amende d during the review period, it is still perceived to 
be skewed in favour of the agent. It would be in teresting to know if the UAE proposes to amend this 
law further to ease the business environment. 
46. FDI inflows increased rapidly in the period under review reaching US$52.3 billion in 2009. 
The main sectors attracting FDI were the financial sector, construction and building, real estate, and 
wholesale and retail trade. The UAE is also an important investor abroad mainly through the 
Abu Dhabi Investment Authority, one of the world' s largest government financed investment funds.  
47. Recognizing the important role of FDI in tran sfer of knowledge and expertise, opening new 
market opportunities and creating employment, the government of UAE has taken several steps to 
create a favourable and business friendly environmen t for attracting foreign investment into the 
country. The UAE currently has over 32 free zones located in Dubai and other Emirates both in the 
services and industrial sectors. These zones permit 100% foreign ownership,  extend corporate tax 
holidays, do not impose personal tax nor any im port duties or currency restrictions and allow 
repatriation of capital and profits. Outside the free z ones, similar incentives are given in terms of tax 
holidays, personal taxation and repatriation, excep t that foreign ownership is limited to 49%.  
48. It is understood that the UAE government is  actively re-examining the Federal Law on 
Commercial companies that limits foreigners from holding equity beyond 49% in companies incorporated in the UAE. A new Federal Unified Fore ign Investment Law is in the legislative process 
which is expected to increase foreign ownership in so me sectors. It would be useful to hear from the 
UAE, the proposed time frame for implementation of this new law and the nature of flexibilities and 
liberalization envisioned therein.  
49. State involvement in the economy is quite large with a considerable number of companies in 
all sectors being totally or partly government ow ned. The Government's strategy to allow greater 
competition and private sector involvement woul d also be of interest to the Members. 
50. Numerous intellectual property laws regulating intellectual property rights have been enacted 
by the UAE to prevent violation of IPRs including  laws on trademarks and copyrights. The UAE legal 
system provides extensive protection to intellectua l property rights including efficient enforcement. 
The UAE is a member of several intellectual propert y treaties such as TRIPS, the Bern Convention for 
Protection of Literary and Artistic Works, The Pari s Convention for Protection of Industrial Property, 
Patent Cooperation Treaty, the WIPO Convention and the WIPO Copyright Treaty.   
51. A contracting party to the GATT since 1994 and a WTO member since 1996, the UAE is a 
strong supporter of the multilateral trading system . The delegation of the UAE has been an active 
participant in the WTO and in the Doha negotiati ons presenting proposals to eliminate tariffs and non-
tariff barriers on raw materials and submitting an initial offer in the area of trade in services.  WT/TPR/M/262 
 Page 11 
 
 
  52. During the period under review, the UAE con tinued to advance the process of regional 
integration, through its participation in the Gulf Cooperation Council, reflecting the priority attached 
by UAE to regional trade as a valuable compleme nt to a rule based multilateral trading system. 
Through its participation in the GCC, the UAE has signed preferential trade agreements with 
Singapore and the European Free Tr ade Association (EFTA). The UAE is also a member of the 
Greater Arab Free Trade Agreement (GAFTA).  In  2010, the UAE's total preferential trade amounted 
to US$38.53 billion or 18.8% of its total trade. 
53. The UAE has signed bilateral preferential agreem ents with Syria, Jordan, Lebanon, Morocco 
and Iraq, and a trade investment framework agreement with the United States.  The UAE's commitment to free trade is reflected in the la rge number of bilateral ec onomic agreements with 
50 countries.  
54. Finally, the UAE has identified certain ar eas where it could benefit from trade related 
technical assistance. These include the possibilit y of information sharing and capacity building on 
WTO related issues through seminar s and workshops in collaboration with the WTO Secretariat and 
other international organizations, and advice on adaptation of domestic legislations for 
implementation of WTO agreements in specific areas. I hope that these would receive due 
consideration of the WTO Secretariat and Member s. This Trade Policy Review provides a useful 
opportunity to exchange information and obtain clarity in areas where the UAE proposes to introduce further reforms and liberalize its policies.  At the same time, the feedback received from Members would help the UAE identify the broad areas of concer n to its trading partners  which could serve as a 
useful input into its policy planning process.  WT/TPR/M/262 
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  IV. STATEMENTS BY MEMBERS 
UNITED STATES 
 
55. The Secretariat notes that the UAE's trade regime  is generally open, with low tariffs and few 
non-tariff barriers to trade, which was instrumental  to achieving solid economic growth prior to the 
global crisis.  Furthermore, the Secretariat indicates  that this openness facilitated the diversification of 
economic activity, into services, real estate, and ma nufacturing.  In its report, the government noted 
its ability to overcome the repercussions of the global crisis in record time, which we commend.  We 
are also encouraged by the UAE's commitment to  pursuing a progressive economic agenda, focused 
on economic liberalization, diversification, and pr omotion of the role of the private sector.  The 
United States and the United Arab Emirates enjoy a strong bilateral dialogue and maintain a robust 
trade relationship, with bilateral trade continuing to expand.   
56. While the UAE has reason to be pleased with the results of its economic reform efforts to 
date, the United States would like to highlight several areas that we believe need greater attention.  As 
the Secretariat notes, the investment regime remain s considerably more restrictive than the trade 
regime.  We encourage the UAE to consider carefully the impact of its existing investment restrictions 
on the investment climate.  For example, we urge the UAE to consider our view that the inability of 
non-Emirati partners to hold more than 49% of  the capital of a company and the inability of 
non-Emirati companies to pursue commercial activiti es in the UAE without an Emirati agent or 
sponsor are limiting its potential as an attractive investment destination. 
57. We would also like to highlight the comple x nature of the UAE's import regime.  The 
Secretariat's report notes that the UAE requires import documentation to be "legalized" and calls for 
consular fees to carry out this process.  Th ese types of requirements seem unnecessarily burdensome 
and we are not sure what purpose they serve.  We hope the UAE will shed light on these practices, 
procedures, and the scope of their appli cation during the course of this review. 
58. The United States would also like to note the ke y role that a fair and transparent government 
procurement regime can play in attracting forei gn investment.  We urge the UAE to become an 
observer to the WTO Committee on Government Procurem ent.  In addition, since the revision of the 
Government Procurement Agreement that was ag reed upon at the WTO Ministerial in December 2011 
will facilitate accession to the GPA, we strongly en courage the UAE to comme nce accession to the 
GPA as soon as possible.  The United States stan ds ready to work with the UAE on its GPA 
accession.  This action would be a good way for the UAE to work toward enhancing its participation 
in the multilateral trading system, and we will be in terested to hear the government's plans in this 
regard. 
59. According to the Secretariat's Report, the Emir ates Standardization and Metrology Authority 
is in charge of drafting, formulating and issuing st andards.  The United States would like to urge the 
UAE to continue developing and expa nding its efforts to ensure that technical regulations, standards, 
and conformity assessment procedures are notified to  the Secretariat and published for comment in 
draft form with enough advance notice to allow all inte rested parties to have su fficient time to review 
and comment, and so that Emirati authorities can ta ke those comments into account before finalizing 
the regulation, standard, or procedures.  The United States has found that consultation with, and 
involvement by, all interested parties in the regul atory process leads to rules and regulations that 
better meet their objectives while minimizing trade distorting effects.  The United States stands ready 
to work with the UAE on this effort. 
60. We urge the UAE, as well as its Gulf Cooperati on Council partners, to complete their review 
of the Secretariat's Factual Presentation on the GCC Cu stoms Union, so that it can be reviewed in the 
Committee on Regional Trade Agreements.  We also  request that the UAE and its GCC partners  WT/TPR/M/262 
 Page 13 
 
 
  provide greater clarity on the specific products includ ed in each Member State's "list of special goods" 
that are exempt from the GCC common external tariff. 
61. The United States shares a positive and supportiv e economic partnership with the UAE, and 
we hope that the UAE will find this review to be usef ul not only in its reform efforts, but also in its 
efforts to enhance its WTO participation.  We th ank the Government of the UAE in advance for its 
efforts to respond to our questions, and we plan  to review its responses carefully and request 
clarifications as necessary during the course of th is TPR.  We look forward to continuing our work 
with the UAE and our trading partners to stre ngthen the global economy and the multilateral trading 
system embodied by the WTO, allowing trade and investment opportunities to expand.   
HONG KONG, CHINA 
62. The UAE and Hong Kong, China have maintained cordial trade relations over the years.  The 
UAE is one of our top 20 trading partners.  Th e bilateral trade between the UAE and Hong Kong, 
China has seen rapid expansion in past years, a nd recorded double-digit growth (of 14%) from 2007 
to 2011.  We hope the momentum will continue. 
63. We commend the UAE that its duty-free tariff lin es have increased from 5.9% of the total 
tariff lines in 2005 to 9.4% of the total tariff lines in 2011, and that all its tariff lines are bound.  We 
are also pleased that non-agricultural products import ed into the UAE are subject to tariffs at an 
applied rate of no more than 5%.  According to  the Secretariat Report, around 99.7% of the UAE's 
tariff lines are ad valorem.   We encourage the UAE further to simplify its tariff regime by changing 
the tariff rates of the remaining tariff lines to ad valorem  as well. 
64. We note that the services sector in the UAE ha s been growing rapidly in the past years, 
particularly in air and maritime transport, teleco mmunications, and tourism.  Nevertheless, foreign 
participation in certain services sectors is still forb idden or restricted.  In this regard, we would 
encourage the UAE to consider further liberalising the trade regime for foreign investment by, for 
instance, issuing new licences and reducing, if not removing, foreign equity limitations for various services sectors such as insurance, telecommunications, maritime transport, road transport, legal and 
accounting. 
65. The investment regime in the UAE remains rest rictive compared to its relatively open trade 
regime.  We note that foreign participation in any domestic company or activity is limited to 49% of 
the capital, and there is a mandatory requirement on the use of local agents to conduct business.   
66. We are pleased to learn about the preparation of a new Investment Law, which will expand 
foreign participation and foster foreign investment  and transfer of know-how.  We encourage the 
UAE to continue liberalising its investment regime , with a view to creating a favourable environment 
for foreign investment. 
67. The UAE has accorded a high priority to trade f acilitation.  It has streamlined procedures in 
processing documents and has reduced the time re quired to clear customs through initiatives like 
electronic clearance procedures and a risk assessme nt system.  However, the UAE requires that 
imports be processed by a designated trade agent wh ich must be a UAE national or a company with 
UAE ownership of at least 51%.  We note that the ri ght of trade agents to ex clusive distribution, and 
the impediment to terminating a contract with an ag ent have become a barrier to free flow of trade at 
the border.   We look forward to the UAE's con tinued efforts in trade facilitation and in further 
enhancing the free flow of goods. 
68. We are pleased to note that the UAE has not taken any anti-dumping or countervailing duty 
measures, and it has neither initiated any such inve stigations during the period under review.  We WT/TPR/M/262 
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  commend the UAE's efforts and commitments in refra ining from the use of trade remedy measures to 
restrict the free flow of trade. 
69. We are pleased to note that the UAE has established a designated standardisation body "the 
Emirates Standardization and Metr ology Authority" (ESMA).  The ESMA is also the national enquiry 
point for standards information.  There were 632 technical regulations in place in the UAE as of 
September 2011.  It would be more trade-facilita ting if the related information could be made 
accessible on a designated website and with a parallel English version. 
70. The UAE notified the WTO in 1996 that it did not  maintain any state-trading enterprises.  
However, the Secretariat's Report pointed out that a number of UAE's state-owned companies appear 
to be engaged in international trade, for exampl e in the hydrocarbon and investment sectors.  We 
encourage the UAE to review its state-trading ac tivities and update WTO Members accordingly so as 
to ensure transparency and fulfilment of its notification obligations. 
EUROPEAN UNION 
71. The EU is the UAE's second trade partner - in 2011, our bilateral trade in goods amounted to 
€41.3 billion, exceeding the pre-crisis  level. I would also note that the UAE is currently benefitting 
from preferential access to the EU market under th e EU's Generalised System of Preferences. 
72. Our relations remain based, from a legal and institutional point of view, on the 1989 
Cooperation Agreement between the EU and the Gulf Co-operation Council, of which the UAE is one 
of the founding members. The EU's trade with the GCC regionally has been relatively stable over the 
last few years (except in 2009), with potential for further growth. The latter could be best achieved by 
concluding our ongoing negotiations for a comprehens ive region to region Free Trade Agreement as 
soon as possible. Concluding this FTA would enha nce trade and investment flows amongst our two 
regions, contribute to foster stability and also support economic diversific ation and sustainable 
development in the region.  
73. According to the Reports presented for today's meeting, the UAE has since its last Trade 
Policy Review in 2006 remained committed to its open and business-friendly trade policy and taken 
several steps to enhance its economy. As most of  the countries in the world, also the UAE was 
affected by the global financial and economic downtur n, mainly due to the drop in international oil 
prices. The EU is pleased to see that the UAE's  economy has recovered from the crisis, while post-
crisis efforts to balance the country's fiscal deficit s till need to continue. In this context, we would also 
like to congratulate the UAE for refraining from prot ectionism, which – as stated in the Government's 
report - would only result in a stagna nt and inefficient private sector. 
74. There have been important institutional and ad ministrative trade-related developments since 
2006, such as creation of the Ministry of Forei gn Trade or the UAE's successful trade facilitation 
efforts in streamlining the customs procedures.  According to its coherent development strategy 
"Vision 2021", the UAE is committed to building a flexible, diverse, competitive and sustainable 
economy. Diversification of the economy and reduci ng its dependence on oil and gas revenues is one 
of the main challenges the UAE is  facing. We encourage the UAE to continue its ongoing intensive 
efforts in strengthening other sectors, particularly  services and manufacturing, and redouble its efforts 
in opening up to greater private sector involvement.  
75. However, as also concluded in the Secretariat's report and highlighted by several Members 
during the UAE´s previous TPR, despite generally  open trade regime, important competition and 
investment restrictions remain. Investment regime continues to  limit foreign investment and 
competition between local and foreign investors, ex cept in the Free Zones. Also trade in services 
continues to face several restrictions, such as through the legal obligation or practical necessity to use  WT/TPR/M/262 
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  local agents, by putting a moratorium on new licen ces for commercial banks, or placing a limit on the 
number of branches permitted to licensed foreign bank s.  In the insurance sector no new licences have 
been granted by Emirates Insurance Authority since 2008. We encourage the UAE to effectively 
address these limitations to foreign investme nt, including by concluding pending legislative 
amendments. This would certainly provide solid environment for investors and contribute positively 
to the diversification of its economy, pa rticularly in the growing services sector. 
76. In order to further facilitate a nd support international trade, th e EU would like to encourage 
the UAE, as a member of the International Organisat ion for Standardisation, and of the International 
Electrotechnical Committee (IEC) to adopt interna tional standards as national or GCC standards, 
where appropriate and applicable. 
77. As regards SPS, the EU would like to refer to the 2000 import ban on BSE grounds of live 
bovines and their products from the EU. We call on th e UAE to immediately lift all import bans from 
the EU by fully aligning its measures with th e relevant OIE recommendations, or to present a 
scientific justification for not doing so. In more ge neral terms, the EU would like to encourage the 
UAE to continue its transparency efforts and provi de: a) the European Commission and the competent 
authorities of EU Member States with copies of the re ports of audits (performed in the EU by UAE or 
GCC experts) to their inspection and certification systems; b) a list of all the applicable SPS import 
requirements and procedures (per production sector or commodity); and c) further information as 
regards existing or future SPS regulations and standa rds for the import of animals, plants and their 
products.  
78. The UAE is an active WTO Member and involve d in promoting a multilateral trade agenda. 
At the same time, the UAE is steadily enhancing its  development through regional integration in the 
framework of the GCC. Although not yet comple tely harmonised and finalised, the GCC's common 
market was launched in 2008 and progress is being ma de towards its establishment. The EU is certain 
that regional integration, including the establis hment of a strong common market will become 
beneficial for the development of the UAE and the other GCC members. While clearly supporting 
these integration efforts, we would also like to r ecall the WTO rules applied to regional integration 
initiatives. In particular, we note that Cust oms Unions are solely governed by GATT 1994 
Article XXIV. Therefore, we invite the UAE to undertake the necessary measur es to ensure that the 
GCC Customs Union complies with these legal requirements. 
79. In conclusion, we once again welcome the UAE's ongoing efforts towards enhancing its 
overall economic environment in a sustainable way and towards further regional integration within 
GCC. All this will with no doubt facilitate th e achievement of the UAE's overall objective of the 
"UAE Vision 2021", i.e. to "be among the best countries in the world by 2021". 
COLOMBIA 
80. The Secretariat report states that, in the pe riod under review, the UAE was significantly 
affected by the global financial crisis, and that its GDP contracted by 1.6% in 2009, signalling the end 
of a period of strong economic growth in which growth  rates of up to 9.9% were achieved, as was the 
case in 2006. 
81. The Government's response to th e crisis was to adopt countercyclical fiscal and monetary 
policies, as well as bailout measures for government-l inked companies, which carry a lot of economic 
weight, and which faced increased indebtedness.  The implementation of those measures enabled the 
UAE gradually to emerge from the crisis and to resume its experience of positive economic 
indicators, although the fiscal deficit generated by those events persists, having reached a level of 
12.6% of GDP in 2009, in contrast with the surplus of 16.5% in 2008. WT/TPR/M/262 
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  82. The UAE economy is still dominated to a consider able extent by the oil sector, despite the 
diversification strategy implemented over the past  decade.  In any event, the services sector is 
observed to be increasing its share of domestic pr oduction, while the agriculture sector has a very 
small share.  However, there are downside risks for future growth, particularly due to the still ailing 
real estate sector and the short-term refina ncing needs of government-related enterprises. 
83. The UAE has a liberal trade regime, as attested by its high ratio of imports plus exports of 
goods and services to GDP, which was almost 143% in  2010.  However, the same is not the case for 
FDI, which remains subject to numerous restrictions. 
84. With respect to trends in the UAE's trade po licy, we would highlight a number of significant 
achievements referred to in the Secretariat repor t:  streamlining of the procedures for processing 
documents and reduction of the time required to cl ear customs, through the introduction of totally 
electronic clearance procedures and a risk assessment system.  Nevertheless, imports still have to be 
processed by a designated trade agent, and nationa lity restrictions are applied in this respect. 
85. Termination of the monopoly in telephony services.  However, competition in the sector 
remains low;  there is a duopoly in mobile telephon y, which results in relatively high prices.  The 
market could benefit from increased competition in the sector. 
86. Initiation of the drafting of a new law to foster foreign investment and transfer of know-how.  
However, foreign investment continues to be subject  to limitations and investment projects must have 
51% domestic capital.  In addition, the use of local agents to conduct business activity continues to be 
mandatory;  although legislation to enforce agency contracts was amended, it is still skewed in favour 
of the agent, making it difficult for th e investor to terminate a contract. 
87. Finally, we would highlight the Vision 2021 strategy, whereby the UAE is striving to achieve 
sustainable development by moving towards economi c diversification away from oil.  This aim 
reflects the thinking the founding President of the UAE, Sheikh Zayed Bin Sultan Al Nahyan:  "We must not depend solely on oil as the main source of  national income.  We must diversify the sources 
of our income and build economic projects which ensure a free, stable and dignified life for the 
people". 
CANADA 
88. Trade and investment activities play a prepondera nt role in relations between Canada and the 
UAE.  Indeed, the UAE is currently Canada's biggest export market in the Middle East and North Africa, with exports valued at more th an $1.36 billion in 2001, making the UAE Canada's 
20
th largest export market.  Bilateral trade in goods between Canada and the UAE amounted to 
$2.26 billion in 2011. 
89. According to Statistics Canada, Canada's stock of foreign direct inv estment from the UAE 
amounted to approximately $CAN3.8 billion in 2010.  Canada wishes to develop deeper investment 
relations with the UAE, and in this connection w ould like to continue discussions regarding the 
negotiation of an agreement on the promotion and protection of foreign investment. 
90. Canada appreciates the significant effort that has been made by the United Arab Emirates' 
federal government, to diversify its economy and facilitate and promote international trade and 
investment. Canada remains strongly supportive of the UAE's openness to tr ade, as evidenced by, 
inter alia , its low tariffs, limited non-tariff barriers to trade, and free-trade zones. 
91. We are supportive of the goal of the UAE's Vision 2021 strategy, which aims to achieve 
sustainable development by increasing economic divers ification away from oil. The UAE's desire to  WT/TPR/M/262 
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  transform itself into a highly productive and competitive knowledge-based economy reflects the 
government's foresight in anticipating and planning for long-term challenges. 
92. Canada would like to take this opportunity to thank the UAE for its decision in 
December 2011 to lift its import ban on Canadian cat tle, following an earlier decision by the GCC to 
do the same in June 2011.  Canada welcomes this  science-based decision by the UAE, and the GCC 
on behalf of its members.  Canada is also engaged with the UAE to secure full access for beef derived 
from animals under 30 months in accordance with OI E guidelines, and looks forward to the earliest 
possible resolution of bilateral beef issues. 
93. Canada believes that equal treatment fo r foreign companies with respect to, inter alia , 
company and property ownership, would compleme nt the UAE's open trade policies and result in 
mutually beneficial outcomes for both the UAE and its fellow WTO Member states. National 
treatment for foreigners is one of the aims of the UAE federal law on foreign investment that was 
being prepared by the Ministry of Economy in 2011, and we look forward to seeing this proposed 
law's progression and implementation as soon as possible. 
94. Canada encourages the UAE to become an ob server to the WTO Plurilateral Agreement on 
Government Procurement as a step towards full me mbership, so that it may participate in this 
important agreement aimed at ensuring openn ess, transparency, and non-discrimination in 
government procurement.  Canada would also lik e to express our appreciation for the UAE's active 
involvement in the Doha Round negotiations, and we  would encourage you to remain engaged in 
finding ways to move beyond the current impasse.  In conclusion, Canada is pleased to see how much 
progress has been made by the UAE in liberalis ing and diversifying its economy to date.   
ARGENTINA 
95. We welcome the recovery in the UAE's GDP si nce 2010, following the contraction recorded 
in 2009 as a result of the international financial and economic crisis that began at the end of 2007.  
With regard to bilateral trade between our countri es, it should be emphasized that the marked decline 
recorded in 2009 has been overcome.  In partic ular, there has been an exponential increase in 
Argentine imports of products from the UAE, whic h almost quadrupled between 2010 and 2011.  As 
to exports from Argentina, there is continued grow th, which has raised export levels to the peaks 
achieved in 2008, before the full effects of the crisis were felt. 
96. Without prejudice to the outstanding performance shown by these figures, we consider that 
there is still considerable potential for the growth  of bilateral trade, because of the non-competitive - 
and in some cases complementary - nature of the main  components of this trade, namely:  oil and fuel 
in the case of the UAE, and food products in the case of Argentina.  Food products are Argentina's 
main exports to the UAE, particularly wheat , maize and soya flour, among others;  while 
Argentine imports from that country consist almost exclusively of fuels. 
97. In this connection, like many other developi ng countries, the UAE faces the challenge of 
dealing with the concentration of its exports on onl y a few products, in its case from the energy sector, 
which means that the economy's performance is su sceptible to changes in prices.  We therefore 
welcome the efforts being made by the Government of  the UAE to diversify its economy, in particular 
with regard to the development of manufactur es, including the production of aluminium and 
pharmaceutical products. 
JAPAN 
98. To start off, let me mention very briefly our bilateral relationship. The United Arab Emirates 
and Japan have a very strong trade and economic re lationship. In 2010, the UAE was the second crude WT/TPR/M/262 
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  oil exporter to Japan, and Japan was the fifth largest  import source for the UAE. I hope that this TPR 
will contribute to deepening our understanding on trade policies of the UAE. 
99. I would like to start with the UAE' macroeconomic environment and investment policies. As 
a major crude oil producer, the UAE' economy relies on natural resources, yet it has also been 
developing its services sector which amounted for 48 % of GDP in 2009. Most of the FDI, which has 
more than tripled between 2005 and 2009, has been al so directed to several service sectors such as 
transportation and communications, construction and building and financial services in 2009. We 
believe that it is essential for the UAE to keep up this momentum in order to further diversify its 
economy. 
100. However, the UAE maintains a horizontal foreign ownership restriction of 49% as well as 
restrictive appointment requirements for local servi ces agents or "sponsors".  We learned that these 
are seen as obstacles to business activities from businesses operating in the UAE. Therefore, Japan 
urges the UAE to review these restrictions in or der to facilitate business and investment, which are 
essential for the diversification of its economy. 
101. In this respect, it is encouraging to note that the government is now preparing a new 
investment law, which would include provisions to a llow for an investment with 100% foreign equity. 
In this connection, we are grateful to the UAE's  response to our question which we received this 
morning.  The reply states "the new law is expect ed to allow for 100% foreign ownership in specific 
sectors of the country's economy in line with th e federal government's economic diversification 
strategy."  For Members' better understanding, we w ould be grateful if the UAE could explain a bit 
more about the sectors where 100% foreign ownershi p will be allowed as well as the criteria to be 
used for the selection of such sectors.  
102. On the other hand, we understand that these restrictions are not applicable within Free-Trade-
Zones.  However, we have also learned th at foreign businesses operating in FTZs have some 
questions about the legal basis of incentives, such as foreign ownership of land within FTZs. 
Therefore, Japan encourages the UAE to provide th ose corporations investing in FTZs with more 
legal certainty, which I believe would lead to further enhancement of foreign investment.  
103. Regarding trade and trade-related policies, we ha ve two comments.  Firstly, according to the 
Secretariat Report, the government procurement is  limited to GCC citizens or to companies with 
maximum foreign equity of 49%. In this context, Japan encourages the UAE to relax the restriction 
and to consider becoming an observer to the GPA, in order to improve the efficiency of government 
spending. Secondly, on tariff rates, as the Secretariat observes in its report, the gap between MFN 
applied tariff rates and bound rates creates uncertainty . Any effort to reduce this gap will be highly 
welcome. 
104. In relation to sectoral policies, I would like to comment on insurance services. In this area, the 
foreign ownership restriction is even more stringent  than other sectors.  According to the Secretariat 
Report, maximum foreign ownership of domestic in surance companies is set at 25%. Although many 
insurance companies already exist,  insurance penetration still remain s low (2.15% of GDP in 2010). 
Japan encourages the UAE to review insurance regulations to allow for further participation of foreign 
insurance companies, and to make GATS commitments in this sector in the future.  In conclusion, 
Japan would like to reiterate its hope that the UAE  will diversify its economy by promoting FDI and 
facilitating foreign business participation in  the government procurement market.   WT/TPR/M/262 
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  INDONESIA 
105. The UAE is one of the world's key trading players, with strong multilateral trade 
commitments making this entity very attractive mark et and appealing for other countries.  The UAE 
investors have also proven to be among the most stable and reliable of Indonesia's partners.  
106. The UAE's openness is one of the important instruments in achieving the solid economic 
growth. It has facilitated the diversification of global economic activities. The UAE Government also 
has successfully pursued more transparent, fair  and modern policies which were enabling business 
environment that are conducive for economic growth .  The UAE has always focused on strengthening 
its stance as a hub for regional business. Hence, it de monstrates an ideal model to be emulated in 
various kinds of patterns of economic  development and modernization. 
107. Indonesia and the UAE enjoy a wide-ranging re lationship encompassing extensive business, 
development, social culture a nd people-to-people links. These linka ges have been expanded and 
strengthened in recent years. They reflect a shar ed commitment to advancing cooperation between the 
two countries. Indonesia and UAE are important trading partners to each other. The UAE has been one of the main trading partners and valuable i nvestors in Indonesia for years. The UAE companies 
have invested in various fields in Indonesia includ ing oil, real estate, logistics and infrastructure 
projects. 
108. The trade relations between the two countri es during 2007-11 have shown an increasing trend 
by 4.9%. The total trade between Indonesia and th e UAE in 2011 was US$2.5 billion. It increased by 
29% compared to 2010 which was US$1.9 billion. 
109. As for trade in services, Indonesia is one of countries which supplying domestic workers to 
the UAE, both professionals and domestic workers. I ndonesia expects the UAE to maintain degree of 
openness to protect the rights of Indonesian workers. 
110. As one of the UAE trading partners, Indonesia h as keen interest in the UAE trade regime. We 
have submitted several written questions concerning th e various aspects of trade policies, such as the 
policy concerning
 plant quarantine regulations and air tran sport competition policy.  Despite of 
several concerns which we have raised, Indonesia greatly appreciates the various efforts and devotion 
accomplished by the UAE in maintaining an open trade regime. 
TURKEY 
111. We consider the UAE as an important economic partner for trade, construction, investment, 
and joint ventures. There is considerable inter est from the Turkish businessmen to conduct commerce 
with the UAE as well as enthusiasm for investing th ere. Trade relations between Turkey and the UAE 
are very strong. The UAE was our third biggest export market until 2009. Decrease in our trade 
stopped in late 2010 and trade volume expanded at a rate  of 32% in 2011.  Further, the UAE is host to 
many Turkish contracting companies. Besides ex isting bilateral platforms for trade and economic 
relations, we are also engaged with the UAE at va rious forums of the GCC. We hope that the UAE 
will support the efforts within the GCC to conclude a free trade agreement with Turkey.  While we are 
content with the current developments in our trade ties, we continue to en courage our companies to 
benefit more from the immense untapped potential that exists. 
112. We note with pleasure that the UAE has been  successfully implementing its strategy of 
diversifying its economy by expanding into servi ces, real estate and manufacturing industries. The 
Secretariat's report points out this sectoral expans ion as the main reason behind the strong growth 
between 2005-08. This structural change, once comp leted, will help the UAE to address the several WT/TPR/M/262 
Page 20  
 
  economic difficulties which the country has been f acing at present. Overall, we believe that the 
economic slowdown in 2010-11 is temporary and outlook for the UAE economy remains positive.  
113. We also underline that in addition to its effo rts for diversification, the UAE has undertaken 
the initiatives to further improve its business friendly environment and to facilitate trade flows. Its 
harmonisation of standards and technical regulations  and liberalization of ser vices within the context 
of the GCC, streamlining of customs procedures, initiation of electronic customs processing, and 
ongoing work for a single customs windows are steps in the right direction. We hope that such policies will put the economic growth on a more sustainable basis. 
114. The UAE bound all its tariffs, and it maintains 97% of  its tariffs on ad-valorem basis. It does 
not have other duties. Further, its average MFN a pplied tariff is around 4.9% with just a few non tariff 
barriers. We commend the UAE for having a simple a nd open trade regime. In this respect, additional 
transparency with regard to the GCC Customs Un ion will only help underscore UAE's liberal trade 
regime.  We hope that the UAE will encourage its part ners in the GCC to complete the full review of 
the GCC Customs Union at the Regional Trade Comm ittee of this body. Further, notification of the 
state trading enterprises to the relevant Committe e will enhance transparency which the UAE also 
values under this organization.  
115. The UAE has a friendly business environment as proved by tripled FDI inflows in the review 
period. However, we believe this amount may be further increased as the UAE has become the 
business center in its region. On this occasion, we w ould also like to highlight several areas which 
may be targeted to further facilitate foreign investments.  
116. In our view, the foreign ownership restrictions in some sectors as well as the requirement to 
use local commercial agents seem to be impedime nts to fully utilize the immense potential foreign 
companies may offer.  In this respect, we welcome the 2011 decision by the UAE to review the Federal Law No. 1 of 1979 to streamline the licensi ng requirements in industrial sectors. We are also 
encouraged with establishment of Commercia l Agencies Committee as a dispute resolution 
mechanism between foreign investors and local agents. However, we believe that easing the 
requirement of using local agents will make the UA E a more prominent place for foreign investments. 
We will be interested in hearing the plans, if any, to this effect. 
INDIA 
117. With its unparalleled strategic location comb ined with a business friendly legal and trade 
environment, a world class infrastructure and a di verse and ever growing base of opportunities, the 
UAE has emerged as a top global investment and financ ial centre.  Its free trade zones have promoted 
inflow of foreign investment and technology co ntributing to the economy's growth and dynamism.  
118. We are happy to note that the UAE's open a nd liberal trading regime and friendly business 
environment has led to steady economic growth during the period under review, except for a short 
interruption in 2009 due to the global economic crisis. Prudent monetary and fiscal policies adopted 
by the government of UAE combined with an incr ease in oil prices and a strong growth of the non-oil 
sector helped the UAE make a quick recovery.  Its GDP grew by 1.4% in 2010. 
119. The UAE follows a simple tariff regime; 100% of  its tariffs are bound; 97% of these lines are 
ad valorem  and majority of the tariff rates are now aligned to the GCC common external tariff. Since 
the last review, the UAE's average tariff has come  down from 5.1% to 4.9%.  We welcome the steps 
taken by the UAE towards trade facilitation by simplifying customs clearance procedures.   
120. Trade links between India and the UAE date b ack several centuries.  Initially dominated by 
traditional items such as dates and fish, exports fr om India started expandi ng after Dubai positioned  WT/TPR/M/262 
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  itself as a regional trading hub by the early 1990s and India initiated an economic reform process 
around the same time. 
121. Starting from a value of US$180 million per annum in the 1970's, India-UAE trade crossed 
US$67 billion in 2010-11, making the UAE India's larg est trading partner.  Bilateral trade grew from 
US$43.45 billion in 2009-10 to US$67.10 billion in 2010- 11 reflecting a growth rate of 54%.  This 
included exports from India worth US$34.35 and imports worth US$32.75 billion in 2010-11. During 
April-June 2011, total trade between India and UAE amounted to US$18.57 billion and UAE 
continued to retain its top position as India's largest trading partners.    
122. India's exports to the UAE comprise a well diversified basket of petroleum products, precious 
metals, stones, gems and jewellery, minerals, f ood items, textiles and engineering and machinery 
products and chemicals.  India's major imports from the UAE include petroleum and petroleum 
products, precious metals, stones, gems and jewellery, minerals, ch emicals, wood and wood products. 
India also imported around 14 MMT of crude oil from UAE in 2010-11. 
123. In terms of investments, there is an estimated US$8 billion UAE investment in India of which 
around US$2 billion is in the form of FDI, while the re maining is in portfolio investment.  UAE is the 
tenth biggest investor in India in terms of FDI.  UAE 's investments in India are concentrated in mainly 
five sectors, namely, Energy, services, programming,  construction and tourism and hotels.  The two 
sides are exploring further opportunities for investment. There are also a number of joint ventures and investments undertaken by the UAE companies in India in the sectors of real estate, 
telecommunications, aluminum, ceramics and tiles production. 
124. Many Indian companies have set up manufacturing units in the UAE either as joint ventures 
or in Special Economic Zones for cement, build ing materials, textiles, engineering products, 
consumer electronics etc.  Indian companies have al so invested in the tourism, hospitality, catering, 
health, retail and education sectors. 
125. President Mrs. Pratibha Patil paid a state vi sit to the UAE in November 2010 during which a 
delegation consisting of 56 Indian businessmen and representatives of Industry accompanied her and 
held fruitful discussions with their counterpart s in Abu Dhabi, Dubai and Sharjah. A Joint 
Commission mechanism at the level of Foreign Minist ers has held nine sessions so far to discuss the 
entire gamut of bilateral relations. The annual rem ittances made by the large Indian community in the 
UAE (estimated to be around 1.75 million) amounted to over US$5 billion.    
126. On the regional front, India and GCC have  signed a Framework Agreement on Economic 
Cooperation on 25 August 2004 acknowledging the gr owing importance of economic and commercial 
relations between India and GCC countries. India and the UAE enjoy a close and dynamic trade and 
commercial relationship. We look forward to working with the UAE in the coming years for a continued growth in our bilateral ties to expl oit the full potential of this relationship. 
PAKISTAN 
127. The UAE is the major trading partner of Pakistan and the second largest source of 
remittances. Both countries enjoy a special bond of  friendship. Trade relations between the two 
countries have seen significant changes during the last  five years and bilateral non-oil trade has grown 
by 74% in 2010. Now, the economic ties between Pakistan and the UAE are moving from strength to 
strength. This solid foundation is based on mutual respect and a deep sense of cooperation for a better 
future. Bilateral trade is now worth US$7.6 billion,  while 27 companies of Pakistan and the UAE are 
working together in joint ventures. WT/TPR/M/262 
Page 22  
 
  128. Pakistan is also an attractive destinati on for FDI due to geographical proximity, UAE 
investment in Pakistan covers several sectors, in cluding telecom, aviation, navigation, banking, real 
estate and energy. Both countries have immense potential to benefit from the emerging regional 
opportunities. 
129. The UAE provides an excellent model of grow th based on an open trade and free market 
policies, focused around economic liberalization, dive rsification and promotion of the role of the 
private sector.  This combination has led to a substantial increase in economic growth. Its GDP 
increased from US$222.1 billion in 2006 to US$31 4.6 billion in 2008. Although 2009 witnessed a 
decline due to global economic crisis but the UAE ec onomy is on the recovery path as reflected in its 
2010 growth rate of 1.4% compared to a negative 1.6% in 2009. 
130. The UAE is a trading nation as indicated by its high ratio of imports and exports (of goods 
and services) to GDP (around 147% in 2010). Th e re-export sector is the second most important 
component in the UAE's foreign trade with a share of 25% in 2010. This is a result of the Government's ongoing sup port to this vital sector through a po licy direction leading towards trade 
facilitation and advanced seaport and airport infr astructure and facilities. Because of these policies 
UAE is a major global hub of re-export, ranking fi rst among Arab countries and the sixth globally.  
Manufacturing contributes 9.7% of the GDP. Growth in manufacturing was a result of both increasing demand and increased national and foreign investments.  The Services sector is the corner stone of the UAE's trade policy and it is part of their strategy for diversification.  The telecommunication sector is 
one of the most advanced in the world; it has witnessed rapid grow th in mobile penetration which 
reached 193.6%in 2011. As stated in the TPR report UAE was the first country in the region to offer 
fourth generation mobile data services. 
131. In the last decade, tourism has become a corn erstone of the UAE's plan for a diversified 
economy. Tourism contributed 7.4% of the GDP and 11.7% of the country's non-oil GDP in 2009. An important focus of tourism development from a ma rketing and product deve lopment perspective has 
been the creation of an impressive range of sporting, cultural and lifestyle events. The Abu Dhabi 
Tourism Authority has set itself a target of in creasing annual visitor number to over 3 million by 
2015.   The banking and insurance sectors although  witnessed a highly volatile growth during the 
recent years, double digit growth rates in 2008 faced  a slowdown in the wake of financial crisis, 
however there are positive signs of recovery. 
132. Air and maritime transportation sectors have ga ined competitiveness with state of the art 
infrastructure, including five international airpor ts. The UAE has plans to become global transport 
hub by investing around US$136.1 billion in the aviation industry over the next decade.  The future 
direction of UAE policies is progressive and based on global integration, competition, consumer 
protection and public-private partne rship. Some of the challenges ar e need for renewable energy and 
increased water consumption.  They have taken se veral steps for transformation of the traditional 
economy into a knowledge economy. These steps incl ude consolidation of the legislative and 
regulatory structure in the field of technology and communications. They are investing in human and 
institutional capacities regarding information and communication technology, consolidating related 
infrastructure and working hard for a state or ientation towards knowledge economy. I see a model 
here which can be emulated by countries b estowed with similar geographical conditions. 
AUSTRALIA 
133. Australia congratulates the UAE for the substan tial progress in further opening its economy to 
international trade and investment.  We welcome th e UAE's continued efforts to diversify its economy 
as part of its long-term development strategy.  This will help the UAE's economy to resist the 
fluctuations in global markets that have been a fe ature of the past few years.  We would encourage 
further trade liberalisation as another means by wh ich it can contribute to this diversification.   WT/TPR/M/262 
 Page 23 
 
 
  Australia believes improving the ability of foreigners  to invest in the UAE would bring substantial 
benefits. 
134. Australia welcomes the recent growth in our b ilateral relationship, marked by a stream of 
high-level visits in both directions.  Our bilateral trade and investment ties are an important pillar of 
the relationship.  Australia's bila teral trade with the UAE was valued  at over A$5.3 billion in 2010-11, 
making the UAE Australia's largest trading partner in  the Middle East.  The UAE is also host to our 
largest expatriate business population in the Gulf. 
135. We hope to foster further growth in our trade and investment relationship by capitalising on 
continued trade liberalisation, including through the conclusion of a free trade agreement with the 
GCC.  We welcome the UAE's support for an early  resumption of the FTA negotiations.  This TPR 
provides an opportunity to gain further insights to the important changes occurring in the UAE 
economy as well as to highlight where further changes could be made.     
EGYPT 
136. We acknowledge the UAE steadfast resolve to  the multilateral trading system which is 
demonstrated through the openness of its trade policy.   The UAE has contributed constructively to the 
DDA through its proposals to eliminate tariff and n on-tariff barriers on raw materials as well as its 
submission of initial offers in trade in services. 
137. We commend the UAE's strong economic performance which was based to a large extent on a 
successful strategy of diversification that included services, real estate, and manufacturing.  The focus of the UAE's Government to create an enabling bu siness environment contributed to the recognition 
of the UAE as an international cente r for trade, finance and services. 
138. We appreciate the UAE's commitment to region al trade integration as a complement for a 
rule-based and non-discriminatory multilateral trading system.  The UAE, as a founding member of the GCC, is actively participating in the ongoing negotiations between the GCC and its main trade 
partners.  The UAE is also a member of the GAFTA.  It is worthy to note that both GAFTA and GCC 
customs union have been notified by the WTO in  accordance with the transparency procedures 
established by the General Council in 2006.  We theref ore look forward to have factual consideration 
of the GCC customs union in the CTD, gi ven that it has invoked the Enabling Clause. 
139. We applaud the important step of the UAE's Government to initiate a drafting of a new 
investment law in order to boost foreign investme nt.  We also appreciate the efforts exerted to 
conclude a draft Competition Law, which is now being reviewed by the Federal National Council.  
We commend the UAE's strive to transform its economic architecture from the traditional economy to 
knowledge economy. 
SOUTH AFRICA 
140. South Africa enjoys a healthy bilateral rela tionship, both political and economic with the 
UAE, strengthened by several high level Ministeria l and business delegation visits over the recent 
years.  Imports and exports between the two countries have increased steadily over the past few years.  
In 2010, UAE ranked as the sixth largest source of im ports in the region (excluding Turkey).  Mineral 
products is by and large the main product impor ted from the UAE, followed by base metals and 
articles of base metal, plastics and articles ther eof, rubber and articles thereof, machinery and 
mechanical appliances, and products  of the chemical or allied industries.  Imports of mineral products 
from the UAE accounted for an 87% share of total exports from there in 2010.  In 2010, UAE ranked as South Africa's top export destination enjoying a 43 .5% share of our total exports to the Middle East WT/TPR/M/262 
Page 24  
 
  region.  Exports include mineral products, base meta ls and articles of base metals, vegetable products, 
natural or cultural pearls, and produc ts of chemical or allied industries. 
141. Two way complementary investment flows have  been increasing between our two regions as 
we both realize the synergies and opportunities such investment links present.  There are roughly 140 known registered South African companies in the UAE.  The UAE is the 24
th largest investor in 
South Africa whilst South Africa is the 19th largest investor in the UAE.  The largest investments by 
South Africa into UAE were made in the financia l services sector, followed by investments in the 
communications sector, retail, construction and pharmaceutical sectors.  Investments by the UAE into South Africa have been made in the real estate, business services, transpor tation and warehousing and 
storage sectors.  We are always looking to enha nce these mutually beneficial investments links. 
142. The UAE has in recent years been  able to demonstrate strong growth rates, thanks to its 
successfully strategy of diversification into services,  real estate and manufacturing.  We would like to 
commend and congratulate the UAE on recent positive developments in its competition and investment regimes.  In particular, we welcome the initiation of the UAE's new Investment Law, which seeks to expand foreign participation and foster  foreign investment and transfer of know-how.  
However, we still have some concerns regardin g the use of mandatory local agents and other 
limitations and would urge the UAE, in the interest s of expansion and enhanc ement of mutual trade, 
to lift such remaining restrictions and enhan ce the investor-friendly environment throughout the 
Emirates. 
143. We are interested to hear more of progress of the UAE's draft national competition law, and 
would urge rapid adoption and implementation of su ch competition legislation, in order to enhance 
the trading and investment environment for potentia l trading partners, and especially in light of the 
relative concentration of producers/suppliers in some  sectors, a fact that is highlighted in the 
Secretariat Report.  In telecommunications, we  welcome the termination of the monopoly in 
telephony services.  We would like to encourage th e UAE to consider further opening up competition 
into this sector. 
THAILAND 
144. The United Arab Emirates and Thailand have had a long-term diplomatic and economic 
relationship spanning nearly four decades. The United Arab Emirates is our number one trading 
partner in the Middle East. During 2009-11, our total trade value averaged at US$12.6 billion per year. In 2011 alone, the total trade value am ounted to US$17.2 billion increasing 48% from 2010. 
145. Our main exports to the UAE include cars and pa rts, air conditioners, jewellery, computers, 
radio and television sets. Thailand's main imports  from the United Arab Emirates are petroleum and 
natural gas. Last year our import of crude oil from the UAE nearly reached 300,000 barrel per day 
which was approximately 50% of a ll of our crude oil import from the Middle East.  On the investment 
side, we note with appreciation of an increasing two-way investments by private sectors of both 
countries particularly in the service sector such as construction, port management, tourism and health 
care. 
146. Thailand appreciates the UAE' open trade regime  featuring low tariffs and few non-tariff 
barriers to trade.  Thailand commends the United Ar ab Emirates' progress and effort in diversifying 
her economy away from oil into a more broad- based economy including developing manufacturing 
and service sectors. We also wish to express our appr eciation for the UAE' role in integrating with the 
multilateral trading system particularly on its activ e participation in the Doha Development Agenda. 
The UAE' unblemished record of not having been  involved in any dispute settlement case since 
joining WTO is also noted.  To conclude, Thailand appreciates its longstanding relationship with the 
UAE.   WT/TPR/M/262 
 Page 25 
 
 
  SINGAPORE 
147. The importance of the United Arab Emirates as a trade and investment partner to members is 
evident in the good level of engagement at the UAE 's second Trade Policy Review today, including in 
the questions members have submitted. Singapore is happ y to be able to participate in this event. We 
enjoy good economic relations with the UAE, which we  are confident will only continue to grow. Our 
bilateral trade is strong and our companies are active in several areas of the UAE's economy, 
including in waste water management, infrastructure,  logistics, and design consultancy for hotels and 
resorts. Singapore is also an FTA partner of the GCC, of which the UAE is a member.  
148. It is clear that the UAE's open trade regime is a key factor for the success of its economy. The 
UAE has low tariffs, few non-tariff barriers, no impor t restrictions except for safety, moral, and 
religious reasons, and minimal export taxes. This, co mbined with a diversification of its economy into 
the services sector, and a positive mindset towards al ways continuing to strive for better market 
access through multilateral, regional, and bilateral trad e arrangements, is a significant indication that 
the UAE, like many other developing countries, has realised the benefits that a forward looking trade policy can bring.  
149. It is important for the UAE's progressive direction to also be extended to other essential 
aspects of the economy, for instance through improving investment practices and competition policies. A more liberal and welcoming investment  environment, beyond the Free Trade Zone areas, 
would complement the benefits reaped from open trade. Improvements to further lift investment 
restrictions and to develop a robust competition policy would furt her harness the UAE's economic 
potential and integrate it more deeply into the glob al economy. Like others have said before us, we 
also hope that the UAE will one day become an observer and eventual member of the GPA.   
150. To conclude, we would like to take this opport unity to thank the UAE's delegation as well as 
the UAE's team in Geneva, whom we work closely with, in the common goal of upholding, 
strengthening, and contributing to the multilateral trading system. As the UAE continues to implement 
and advocate open and forward-looking trade policies and practices, it will continue to play an 
exemplary role in the WTO as a member whose trad e-led growth has greatly developed and benefitted 
its economy, and contributed to its success.    
QATAR ON BEHALF OF THE ARAB GROUP 
151. The Arab Group is pleased to participate in th e second TPR of the UAE and take note of the 
steady progress in trade policies and practices sinc e its first TPR.  The UAE has always played a 
prominent role within the GAFTA, where its policies of openness have been integral in enhancing the 
region efforts towards expanding the scope of GAFTA. 
152. As noted by the Reports prepared for this meeting, the UAE has taken important policy 
initiatives since 2006 to emerge as a significant player in an  increasingly inter-dependent world.  We 
are happy to note that the UAE has not introduced an y protectionist trade-policy measures despite the 
negative impact of the global financ ial and economic crisis on its economy. 
153. We commend the UAE in making steady progress in trade facilitation, including easing of 
customs procedures and lowering the administrative import and export costs.  According to the World Bank's Ease of Doing Business 2012 survey, the UAE ranks second in the region and 33
rd globally. 
154. The Arab Group would like to commend the UAE for its ability to overcome the repercussion 
of the global economic crisis in record time.  As  indicated by the Reports, in 2010 the economy grew 
1.4% compared to a negative 1.6% in 2009.  It is also important to note that this growth has been 
propelled mainly by high growth achieved by non-oil sectors. WT/TPR/M/262 
Page 26  
 
  155. The UAE creative economy policy is an excelle nt example of how an energy-exporting 
developing country can diversify the economy aw ay from oil into industry and services.  The 
Secretariat Report has noted that the country non- oil exports share has increased from 5% in 2000 to 
11% in 2010. 
156. The Arab Group commends the UAE for participa ting actively in the current negotiation in 
the WTO under the DDA.  As an important exporter of the primary aluminium, the UAE has called on 
Members to eliminate all tariffs and non-tariff barri ers on this product.  The UAE has gone further 
than its WTO commitments by providing a voluntary tr ade policy review in 2010.  This demonstrates 
UAE's serious commitment as a major trading nation to  the WTO rules.  In conclusion, we would like 
to thank the UAE for always being a strong sup porter of the multilateral trading system, and we 
highly appreciate UAE's efforts in this regard. 
THE KINGDOM OF SAUDI ARABIA ON BEHALF OF THE GCC COUNTRIES 
157. We would like to express our support for the stat ement made by Qatar on behalf of the Arab 
Group.  The GCC countries are pleased to take part in this TPR, which reflec ts the achievements of 
one of the GCC founding members and its role in this Organisation and in the world trading order. 
158. Despite the economic crisis, which casted its  shadows on most economies worldwide, the 
UAE economy has been gradually recovering as reflecte d in its 2010 growth rate, with a real GDP of 
1.4% compared to a negative 1.6% in 2009.  This growth has been propelled mainly by higher growth 
achieved by non-oil sectors, which registered a 5% gr owth rate in 2010.  Growth was based to a large 
extent on a successful strategy of diversification, into  services, real estate, and manufacturing.  This is 
evidenced by the fact that the o il sector contributed around 31.5% of the country's GDP in 2010, with 
the rest accounted for by the non-oil sector, compar ed to 37.4% in 2006.  The services sector is 
another policy focus, where the growth of services  will contribute to increased diversification and 
broad-based growth. 
159. The UAE Government has successfully pursued  a strategy to create an enabling business 
environment that is conducive to  economic growth.  Successive deve lopments in the economy of the 
UAE, and the adoption of free market policies and re gulations, have led to impressive growth rates 
and a trend towards sustainable and diversified development. 
160. In this regard, we appreciate the efforts made by the Government of the UAE in 
implementing an economic strategy centred on a liber al trade regime with the objective of reducing 
the economy's high dependence on oil and natural gas,  and the steps being taken by the government to 
improve the country's economic performance, in par ticular by increasing productivity growth of the 
non-oil sectors, and enhancing the participa tion of the private sector in the economy. 
161. The GCC countries note with satisfaction that th e UAE has chosen to build its economic and 
social development on solid basis of free, open, transparent and business friendly environment.  In 
this connection, we are pleased to note that, in its overall development process, the UAE has given 
priority to human development, where it ranked 30
th globally in UNDP 2011 Human Development 
Index, which was above the average of the Arab States. 
162. We note that, within the framework of its sec ond TPR, the UAE has reasserted its support for 
the WTO, as an institution, and fo r the DDA negotiations, and we value its participation in the regular 
activities of the WTO and in the DDA negotiations.  The GCC countries share interests and concerns 
of the UAE and will continue to constructively enga ge with it and other Members to support the WTO 
and the DDA.  We hope that the WTO Secretariat and the Members will be in a position to provide 
the UAE with the requested technical  assistance in order to allow it to  effectively participate in the 
WTO activities and play an ever increasing role in the world trading system.  WT/TPR/M/262 
 Page 27 
 
 
  163. We are confident that the UAE will continue  to develop, implement, and advocate open 
forward-looking trade policies and practices.  Its liberal and progressive regime has deepened its 
integration into the global economy through the strengt hening of trade and investment ties with many 
Members.  In conclusion, we would like to express our support for the UAE's ongoing efforts towards 
enhancing the overall economic a nd social performance.     
CHINA 
164. We would like to take this opportunity to sh are with Members some general comments on the 
economic and trade environment of the UAE and th e development of bilateral economic and trade 
relations between China and the UAE. I will start with the former. In our view, there are at least three 
aspects that deserve our attention.  
165. First, like quite a few countries of the same kind, the UAE has long been an economic success 
primarily due to its heritage of oil. Although ec onomic growth slowed down sharply during the worst 
of the financial crisis, it recovere d fairly quickly with the improvement of external conditions as well 
as proper management internally.  
166. Secondly, unlike most of the other countries with similar endowments, the UAE has made 
remarkable achievements in divers ification. Although the oil sector c ontinues to play a major role in 
the economy, it now accounts for only 29% of GDP. In comparison, the services sector is experiencing fast growth, particularly in air and maritime transport, telecommunications and tourism. 
Perhaps we could also add financial services to th e list, though the picture there is a bit more 
complicated. The contribution of services to GDP has well exceeded that of oil to reach 48%, as cited 
by the discussant. The manufacturing base is still re latively narrow, but it has managed to take over 
10% of GDP. As noted by the Secretariat Report,  there have been important developments in 
aluminum production and pharmaceutical products. Chin a encourages the UAE to continue its efforts 
along this road. 
167. Thirdly, the UAE has an open and liberal tr ade regime which is highly commendable. 
However, the investment regime is considerably more  restrictive, as there is a general cap of 49% for 
foreign capital. We encourage the UAE to make improvement in this area for its own benefit. 
168. Turning to bilateral relations, there are too ma ny happy things to say. The UAE is the first 
export destination of China in the Arab region. We would like to thank the UAE people for appreciating our products with high quality and co mpetitive price. In 2011, bilateral trade amounted 
to over US$35 billion, which is an increase of 36.7% over 2010. The main exports of China are 
mechanical and electrical products, textiles and clothi ng, and computers, while the main export of the 
UAE, is, without surprise, crude oil. 
169. The UAE is a traditional labour contracting market of China. As of the end of 2011, the 
cumulative contract value reached US$18.2 billion with  a turnover of 14 billion. There have been a 
total of more than 60 Chinese enterprises involved in labour contract projects such as oil pipelines, 
roads, bridges, telecommunications etc. in the UAE. Investment is developing rapidly in both 
directions. Also as of the end of 2011, investme nt by the UAE in China h as approached US$1 billion 
involving 780 projects, while there have been 4,000 entities set up by Chinese citizens in the UAE 
with a direct investment stock of US$820 million. 
170. In recent years, trade in services has become a particular active area in bilateral economic 
cooperation. In air transport, there are currently  74 civil air flights per week between our two 
countries. In 2011, the Emirates Airline alone carried 3 million passengers to China. In tourism, 
300,000 Chinese travelled to the UAE as tourists in 2 011. Bilateral cooperation is  financial services is 
also deepening.  In view of the friendly rela tions, the complementarities between our two economies WT/TPR/M/262 
Page 28  
 
  and the common positions on development issues, we have every reason to believe our two countries 
will further strengthen economic coopera tion bilaterally as well as multilaterally. 
JORDAN 
171. The UAE's commitment to the multilateral trading system has been manife sted in their many 
initiatives and policies to promote investment and measures to attract FDI, reduce tariffs, remove 
restrictions and grant MFN treatment to all its partners. 
172. The remarkable figures shown in the Reports related to investment and GDP are a result of a 
wise development strategy followed progressively by the UAE.  Despite the economic crisis, which is 
still casting its shadows on most economies worldwide, the UAE economy has been gradually recovering, as reflected in its 2010 growth rate, show n in the Government and the Secretariat Reports 
before us today, with a real GDP growth of 1.4% compared to a negative growth 1.6% in 2009.  This 
growth has been propelled mainly by higher growth  achieved by non-oil sectors, which registered a 
5% growth rate in 2010 compared to 2009. 
173. Trade liberalisation at the multilateral, regional,  and bilateral levels had contributed to the 
expansion of the UAE exports and to attraction of FDI.  The UAE membership to the WTO and its 
membership in the CGG and the Greater Arab Free Tr ade Area together with its bilateral preferential 
agreements and FTA's negotiated/signed with 50 countries including Jordan, prove the commitment 
of the UAE to free trade policy and the multilateral trading system from which its economic sectors will benefit and prosper. 
174. The sustained economic growth rates and the ambitious economic policies are remarkable;  
Jordan congratulates the UAE Government and the business society for such achievements and would 
like to wish the brotherly UAE more prosperity.  In  addition to the strong ties between Jordan and the 
UAE, Jordan considers the UAE one of its major tr ading partners and we look forward to further 
strengthening our trade and investment relations. 
175. Jordan appreciates the role that the UAE is pl aying in the region and will be always working 
with the Emirates as well as other Arab countries to  promote the Arab region economic development.  
To conclude, Jordan fully associates  itself with the statement made by Qatar on behalf of the Arab 
Group. 
ECUADOR 
176. In the period under review, the UAE, like most other countries, underw ent ups and downs due 
to the crisis.  An economic contraction in 2009, and growth of one and a half points in 2010, contrast 
with the economic results for the period 2005-2008, wh ere the annual average growth rate was 5.5%.  
The Government's response focu sed on monetary policy, and led to bailout measures for 
government-related enterprises, which in turn  caused fiscal deficits in 2009 and 2010. 
177. Heavy dependence on international oil prices, th e crisis in the movable goods sector, and the 
fixed parity of the dirham with the United Stat es dollar had a major impact on the country's economy 
during the review period. 
178. Despite having a relatively liberal trade re gime, the UAE, like various members of the 
Gulf Cooperation Council, maintains limitations and conditions on foreign investment.  The UAE 
applies strict and somewhat complex sanitary a nd phytosanitary regulations, and this could be 
counterproductive for a country whose agricultural sect or is subject to serious natural limitations.  
Latin America is not currently among the major trading partners of the UAE;  if anything its share is 
marginal, both as supplier and buyer.  WT/TPR/M/262 
 Page 29 
 
 
  TUNISIA 
 
179. My delegation wishes to congratulate the United Arab Emirates on the considerable efforts it 
has made since the first Review in 2006 to pursu e its economic and trade liberalization policy, in 
particular by further opening up its economy, estab lishing an environment conducive to developing 
investment, diversifying away from reliance on o il and gas, and expanding its trade and economic 
relations by concluding free trade ag reements with its main partners. 
180. The various measures taken since 2006 have enabled the Emirates to record impressive 
economic growth rates in recent years, despite th e fall-out from the global economic crisis, and to 
achieve world renown as an international centre for trade, finance and services. 
181. The UAE has embarked on the path of gradual r ecovery, with a real GDP of 1.4% in 2010 
compared to -1.6% in 2009.  This increase is largely due to the higher growth observed in the 
non-petroleum sector, which registered 5% growth in 2010 compared to 2009, and the sound policy 
pursued by the authorities, particularly by the Ce ntral Bank, as was emphasized by the Minister this 
morning. 
182. In this connection, we wish to congratulat e the UAE on its steady progress in facilitating 
trade, including the relaxation of customs procedur es, and in reducing the administrative costs of 
importation and exportation and, more  particularly, in regard to the diversification of export products 
and services, as you yourself emphasized in your introduction to this Trade Policy Review of the UAE. 
183. Within the framework of its overall strategy of trade opening and liberalization, the UAE has 
concluded several bilateral free trade agreements.  At the regional level, it is a founding member of 
the GCC.  In this capacity, it is participating in the ongoing negotiations between the GCC and its 
main trading partners, in particular the European Union, Turkey, Japan, South Korea, China, India, 
Pakistan, Australia and MERCOSUR. 
184. These negotiations have led to the signing of free trade agreements between the GCC and 
Singapore and between the GCC and EFTA, as well as to the signing of a draft agreement with 
New Zealand.  The UAE is also a member of the Greater Arab Free Trade Area (GAFTA). 
185. Tunisia attaches great importance to the long- standing cooperative relationship between our 
two countries.  The relations between the UAE and Tuni sia are "rich and deeply rooted in history", as 
was said by the Minister at the Tunisia-UAE partnership meeting held in July in Tunis. 
186. Tunisia is benefiting from a large number of UAE projects, particularly in the fields of real 
estate, tourism and services.  Our two countries are determined to strengthen and consolidate this 
cooperation in all areas.  The strong growth of trade relations between the UAE and Tunisia in recent years is worthy of note.  Non-petroleum trade be tween the two countries increased by 67% in 2010 to 
reach a level of $153 million, as against $90 milli on in 2009.  Non-petroleum exports from the 
Emirates to Tunisia grew by roughly 81% in 2010, to a level of $39 million.  UAE imports from 
Tunisia also grew, by 181% to $63 million in 2010.  This growth continued in the first quarter of 
2011, with an increase in non-petroleum trade be tween the two countries of 26.5% or $29.3 million 
(during the first quarter of 2010). 
187. Tunisia and the UAE have the same views on a large number of negotiating topics under the 
Doha Work Programme and are working together to ensure that the development dimension is given 
greater importance in the outcome of the negotiations.  In this connection, I take this opportunity to 
congratulate Ambassador Obaid Al Zaabi and his t eam on their commitment to the Doha negotiations 
conducted here in Geneva, and to multilateralism in general dur ing this uncertain period. WT/TPR/M/262 
Page 30  
 
  188. While highlighting the strong performance of the UAE economy, Tunisia would like to 
congratulate that country's authorities on the vision for the future presented in the government report, 
which aims to transform the country into a global h ub for entrepreneurship in several industrial and 
service spheres.  We also commend the UAE's commit ment to the multilateral trading system and its 
conviction regarding the virtues of its policies and regulations in the area of international trade. 
MOROCCO 
 
189. The United Arab Emirates, a WTO Member since 1996, is a trading nation:  according to 
WTO statistics, it is one of the 20 leading importers  and exporters in the world.  The UAE has made 
significant strides in economic development over the l ast few years, and this was primarily due to the 
Government's provision of an enabling regulatory envi ronment.  All these efforts have helped to make 
the economy of this Arab country one of the mo st prosperous and stable in the Middle East. 
190. The Kingdom of Morocco welcomes the impressive economic performance of the UAE in 
recent years.  Successive developments combined  with the adoption of free market policies and 
regulations have enabled the UAE economy to reco rd impressive growth rates and to embark on a 
path of sustainable and diversif ied development.  During the period under review, in the quest to 
diversify their economy away from oil, the Emirates  have continued to develop their manufacturing 
sector. 
191. The UAE Government has successfully pursued  a strategy to create an enabling business 
environment that is conducive to  economic growth.  This has contributed to the world-renowned 
status of the UAE as an international centre for trad e, finance and services, and has attracted reputable 
global companies.  The UAE has always focused on strengthening its stance as a hub for business.  
Hence, it serves as an exemplary model for economic development and modernization. 
192. In the view of many specialists, the UAE's ec onomic miracle is likely to be sustainable, 
irrespective of the uncertainties surrounding how l ong oil reserves will last, given the country's 
shrewd management of a revenue stream which is  by far the biggest in the region, and the highly 
coherent strategy of economic divers ification, which is reaping rich rewards in services in particular. 
193. The Kingdom of Morocco also welcomes the fact that the UAE's trade regime is open, with 
low tariffs and few non-tariff barriers to trade.  Th is openness was instrumental in achieving the solid 
growth recorded prior to the global crisis and h as facilitated the diversifi cation of economic activity. 
194. Convinced that progress in modernizing the economy can be achieved only by opening up to 
the outside world, the country is actively particip ating in the negotiations within the WTO and has 
chosen to diversify its trading partners by concl uding preferential bilateral agreements with a number 
of countries, including the Kingdom of Morocco. 
195. We are pleased to note that this agreemen t between Morocco and the UAE has opened up 
new horizons for economic operators , particularly as the two countries have complementary assets 
that have not yet been exploited efficiently. 
196. The UAE is a strong supporter and advocate of th e multilateral trading system.  It is playing 
an active role in the current round of multilateral tr ade negotiations and has been an active player in 
the Doha Development Agenda.  The UAE also su pports the strengthening of technical assistance 
programmes on behalf of developi ng and least-developed countries in several WTO areas.  This 
vision of the UAE is widely shared by many developing countries, including my own country, 
Morocco.  In conclusion, I would like to congrat ulate the Government of the UAE on its successful 
and impressive performance in recent years, and on its remarkable dynamism within multilateral 
trade.  WT/TPR/M/262 
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  OMAN 
197. The UAE is an important WTO Member.  The Sulta nate of Oman enjoys the closest relations 
with the UAE in all fields, as our  economies are inter-linked and inte rdependent as neighbours and as 
members of the GCC.  Oman congratulates the UAE on its impressive achievements.  It has achieved 
a GDP growth rate of more than 5% over the past  few years, it has also successfully followed the 
policy of diversification of its economy, which reduc ed the share of oil in GDP from 37.4% in 2006 to 
31.5% in 2010 and increased the share of non-oil sector. 
198. The foreign trade regime of the UAE is very li beral, open, transparent and predictable.  It 
conforms fully to the principles and rules of th e WTO.  The UAE has bound tariffs on all agricultural 
and non-agricultural tariff lines at re latively low rates, the average of applied tariff is less than 5%.  
Furthermore, the UAE does not apply any internal  taxes such as VAT, excise duty and sales tax. 
199. It is important to note that the UAE has no import licensing regime.  Its import prohibitions 
and restrictions are based on health, safety and mo ral grounds and are applied to no more than 
275 tariff lines, which is less than 5%  of the total tariff lines.  Th e UAE has also made commitments 
on trade in services and it has an extensive legisla tive framework on trade-related intellectual property 
rights. 
200. The UAE is faithfully adhering to the rules and disciplines of the WTO and is abiding by its 
commitments under the multilateral trade agreemen ts.  Its policies and practices have a positive 
impact on the functioning of the multilateral trading system. 
ALBANIA 
201. The United Arab Emirates constitutes an economic success story, not only for its own region, 
but for the whole world.  The UAE Government ha s pursued an open policy conducive to facilitating 
business in the country, by creating more than 30 free zones and establishing conditions favourable to 
domestic and foreign investment. 
202. These trade policies have resulted in a large flow of foreign capital.  What is more, 
some 60 Global Fortune funds have set up head quarters or operating bases in the country. 
203. We also welcome the diversification of the UAE economy.  More than 71% of GDP comes 
from sectors other than the oil industry.  Investment  in key sectors for the future of the country, such 
as health, education and social welfare, constitut es a long-term guarantee for the country's economy.  
Let me conclude by congratulating the UAE on its  economic achievements a nd wishing the delegation 
success in the presentation of its second TPR report to the WTO. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
204. As noted in the Secretariat and the Government  Reports, the UAE has indeed been an active 
participant in the DDA, with proposals to eliminat e tariffs and non-tariffs on raw materials, and its 
initial offer in the area of Trade in  Services. We are also pleased to note that UAE is also emphasizing 
continued diversification away from the traditional dependence on oil and gas, to non-oil industries. 
205. For us, the UAE is an increasingly important trading partner. Our business associations and 
private sectors are constantly organizing visits by trade groups to attend vari ous exhibitions in Dubai 
each year. Investment ties between us also continue to expand, especially in the financial sector, information technology and telecommunications. We can  see since its previous Review in 2006 that 
the UAE's economic environment has generally beco me more liberal and business-oriented, and its 
trade regime more open. However, foreign investme nt continues to be subject to limitation. Although WT/TPR/M/262 
Page 32  
 
  the legislation to enforce agency contracts was amen ded during the review period, it is still skewed in 
favour of the agent, making the termination of a cont ract by the foreign investor rather difficult.  
206. What is encouraging in this respect, though, is that the Ministry of the Economy has been 
mandated by the UAE Cabinet to implement a National Investment Reform Process, aimed at serving as a "one-stop-shop" law reflecting government policies on foreign investment.  
207. As its economy continues to recover and strengthen, we would encourage the UAE 
government to undertake further reforms in pur suit of its progressive agenda, focused around 
economic liberalization, diversifica tion and promotion of the role of the private sector. In conclusion, 
we will continue to work with the UAE towa rds strengthening and deepening our trade and 
investment relationship.  
NIGERIA 
208. Nigeria would like to commend the role Unite d Arab Emirates is playing in the WTO, 
including how it has used market opening and forei gn investment as instruments for economic growth 
and development. However, we note that UAE's h as a number of limitations and conditions, which are 
set on foreign investment, particularly, the requireme nt for 51% domestic partic ipation in all foreign 
investment projects. There is also worrisome pr ovision on the mandatory use of local agents in 
business transactions.  Consequently, it would be in teresting to hear whether UAE's considers its 
restrictions on foreign participation under the invest ment regime as permanent decision, or that these 
could be changed with time. 
209. Nigeria note also from the Secretariat report that  the UAE's trade regime is open, with low 
tariffs and few non-tariff barriers, which is an exce llent example of a free, open and stable trading 
system.  My delegation believes that UAE's active role in its response to the financial crisis by 
supporting banks in providing liqui dity and deposit guarantees, through recapitalization has created a 
favourable environment for business and facilitation of economic developmen t without adopting any 
protectionist measures in response to the financial crisis and challenges faced globally since its last 
review. This is a worthy of commendation.  
210. Nigeria further commends the United Arab Em irates for its efforts to streamline its 
procedures to process documents and reduced the tim e required for customs clearance, by introducing 
totally electronic clearance procedures and a risk assessment system. Nevertheless, UAE still requires 
that imports be processed by a designated trade agent,  and nationality restricti ons are applied in this 
respect, as the trade agent requires a trading licence, granted only to UAE's nationals and to companies that are at least 51% owned by UAE's nationals. We encourage UAE to enhance foreign 
investment its customs procedures and regime without any restrictions that distort trade and 
discriminate against foreign entities. 
211. We note from the Secretariat report that the o il sector and connected industries continue to 
play a major role in the country's economy. The petroleum sector accounted for 29% of GDP, 69% of government income, and 85% of export revenues in  2009. The UAE's estimates of proven crude oil 
reserves are 97.8 billion barrels, equivalent to almo st 8.5% of the world's reserves, while production 
reached 2.32 million barrels per day in 2010. Some 95% of all petroleum production is in the emirate 
of Abu Dhabi. Against this background, Nigeri a wishes to commend the UAE 's for the efforts to 
diversify its economy and reduce the dominance by the oil sector. 
212. We also note from the Government report that tourism growth has become a cornerstone of 
the country's plan for a diversified economy over th e past decade as the country set to invest in 
infrastructure and successfully attracted visitors for a multitude of business and leisure purposes. My  WT/TPR/M/262 
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  delegation wishes to commend them in this achievement  and in promoting tourism that is expected to 
drive the country's economic performance. 
213. The Secretariat Report further stated that  unemployment is low among the foreign 
community, at some 3%, unemployment among nati onals reached 14% in 2009, with a general 
unemployment rate of 4.2%. In order to boost em ployment, especially among the nationals, the UAE's 
government has been conducting an emiratizatio n policy to increase the number of nationals 
employed in private sector activities, particularly ba nking, insurance and trading. Nigeria would like 
to know how and what the UAE's is doing to en sure that the emiratization policy does not create 
inefficient policy spillovers or generate any social di sharmony within the population. In that context, 
Nigeria would like to encourage United Arab Emirat es to continue to maintain open and free trade 
policy, to ensure that it remains competitive and provides the best environment for doing business. 
BRAZIL 
214. Both Reports highlight the remarkable efforts made by the UAE to emerge from the financial 
crises of 2008.  Brazil welcomes the fact that the UAE was able to show a consistent economic 
recovery in 2010, when a GDP growth of 1.4% was registered. 
215. It is worth noting, in this connection, the re levance of the policies designed to diversify the 
country's economy.  It seems clear that FDI may play a crucial role in achieving this objective, and Brazil hopes that the Government of the UAE will proceed with its intent of liberalising the 
investment regime.  It is equally important to high light the steps taken towards fiscal consolidation, in 
the aftermath of the financial crises. 
216. Let me know turn to our bilate ral relations.  Even though bilate ral trade flows are still below 
their potential, since they amounted to no more than US$2,7 million in 2011, it should be noted that 
the bilateral trade flows have almost doubled in five y ears.  In this context, Brazil is happy to note that 
its exports to the UAE are well distributed between basic and manufactured goods.  We hope that this 
trend is maintained in the future and that bilate ral trade flows continue to increase for the mutual 
benefit.  In this regard, Braz il believes that the Framework Ag reement between MERCOSUR and the 
GCC could play a decisive role, especially through the conclusion of the negotiations of a free trade 
agreement between the two regions. 
MOZAMBIQUE 
217. In 2006, the UAE has its first TPR which was hailed as one of the most successful Review.  
Today, almost six years later the UAE is lining up again for the second Review.  There is no doubt this reflects not only the commitment of this country to fair trade, but above all, its confidence on the 
WTO TPRM. 
218. The UAE is member of the GATT since 1994 a nd of the WTO since 1996 and the country is 
well active in the Doha Round of multilateral ne gotiations where it pursues a policy favouring the 
liberalization under the non-Agricultural Market Access (NAMA).  Mozamb ique commends the UAE 
for its open trade regime which is regarded as the secret behind the success of its fast trade 
sophistication and modernization. 
219. In the 2006 review process, we had the opportunity to learn about the main thrust and 
priorities of the country's trade policy.  Beside the improved market access and trade liberalisation, 
the attainment of acceptable levels of diversif ication of its economic base was among the highest 
aspirations and priorities.  We have to bear in mind that the UAE is endowed with 95% of the world 
known oil reserves. WT/TPR/M/262 
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  220. The UAE skilfully resorted to the concept of Free Trade Zones that helped the country to 
record considerable achievements in the field of di versification, notably in areas such as services, real 
estate and manufacturing.  The IMF estimates that non-oil sector grew by 3.3% last year.  The end 
result was the robust economic growth that at certain period averaged 5.5% annually. 
221. In 2009 the economy was hit hard by the intern ational economic and fi nancial crisis, which 
affected many sectors of the economy, particularly the real state segment.  We praise the Government 
for its prompt response and for having resorted to the application of strong counter-cyclical monetary 
and fiscal policies which included the restructuring of the debt. 
222. Thanks to these timely measures, in a span of time of a year the economy rebounded and the 
country continued to assert its status as a regiona l commercial hub and vital transhipment and re-
export centre.  The surplus in the current account ba lance rose to 3.3% of GDP in 2010.  The UAE is 
well known for its highly developed tourism and air transportation industry.  To conclude, I would 
like to seize this opportunity to express my Governme nt's appreciation to the existing level of close 
cooperation between Mozambique and the UAE. 
KUWAIT 
223. I congratulate the UAE on its recent economic performance, and appreciate the vision of the 
UAE to transform the country into a global hub for entrepreneurship in several industrial and service 
spheres.  Trade and economic re lations between Kuwait and the UAE had expanded rapidly in the 
recent years in many major areas under the umbrella of the GCC Common Customs and market laws. 
224. Kuwait commends the UAE for its strong supp ort of the multilateral trading system, for 
implementing trade and economic policies that had fo stered an open trade and economic environment, 
and for its significant steps to improve its investment climate, including the opening of certain key 
economic activities. 
225. The GCC member States work together for better inclusion of the development dimension in 
the results of the Doha negotiations.  Kuwait hoped that the WTO and its partners would meet the 
technical assistance needs identified by the UAE.   
226. Kuwait had its TPR last month.  As Kuwait is a part of the GCC, I would like to make two 
comments in two issues raised by few Members this morning.  First, on the issue of RTAs, developing WTO Members have the right to notify any type of RTAs under the Enabling Clause or under Article XXIV of GATT 1994 according to the RTA Mechanism.  Second, the issue of domestic 
workers should be raised in the ILO at the convenien t forum to discuss the righ t of foreign workers.  
Finally my delegation fully supports the statement ma de by Qatar on behalf of the Arab Group and the 
statement made by the Kingdom of Saudi Ar abia on behalf of the GCC member States. 
CHILE 
227. Over the past few years, the UAE's economic  performance has been positive, with steady 
growth that was interrupted only by the international crisis.  The Secretariat report highlights the implementation of sound fiscal and monetary polici es, as well as countercyclical measures and bailout 
packages implemented by the Federal Government to remedy the effects of the crisis through the use 
of reserves generated by its traditional surplus.  Chile endorses the principle that countries should use 
their surpluses to maintain healthy public fi nances as a vital element of economic stability. 
228. The UAE's regime is open although there are still high levels of concentration between 
producers/distributers in some key sectors.  We belie ve that it would be useful for the UAE to adopt  WT/TPR/M/262 
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  tighter regulatory policies in the areas of agriculture  and market opening to foreign companies.  This 
would directly benefit local consumers who would enjoy lower prices. 
229. Since its last Trade Policy Review in 2006, th e UAE has taken a series of initiatives in the 
customs field, through automation processes which have made it possible to reduce the time required 
for certification and evaluation, as well as the auto mation of risk assessment procedures by electronic 
means.  However, the customs agencies require a licence which can only be obtained by citizens of 
the UAE or companies with at least 51% local capital participation. 
230. At the same time, with regard to port ac tivity and capacity, the administration of ports 
continues to be the prerogative of the different Emirates, and despite the existence of cooperation 
between them, the fact that each Emirate has polic ies in the same area could cause confusion or place 
an excessive burden on impor ters or distributors. 
231. Chile attaches great importance to bilateral re lations with the UAE, as reflected in the opening 
of an embassy in 2009.  That year saw Chilean  exports to the UAE exceed US$62.4 million, while 
imports stood at US$1.7 million.  The trade bala nce amounted to US$60.7 million and trade flows 
reached a level US$64.2 million. 
232. The UAE is Chile's 58th largest trading partner and its 47th export destination.  However, we 
believe that there is potential for growth in trade,  particularly in those areas where our countries are 
competitive without being direct competitors, such  as copper, grapes, dried fruit and salmon in the 
case of Chile, and passenger cars and light trucks in th e case of the UAE.  To that end, and in relation 
to such trade, we invite the UAE to implement qua lity standards in line with international standards 
with regard to headings such as fresh fruit, dried fruit and others which provide for greater 
predictability and certainty for exporters and importers. 
ZIMBABWE 
233. The adoption of free market policies and regulati ons and the pursuit of a strategy to create an 
enabling business environment that is conducive to  economic growth, is paying dividends to the 
government and people of the United Arab Emirat es. Having achieved a real GDP growth of 1.4% 
in 2010 compared to a negative 1.6% in 2009 the United Arab Emirates economy can only progress 
to higher level, underpinned by the pursuit of the Government progressive economic agenda which 
is focussed around economic liberalisation, divers ification and promotion of the role of the 
private sector. The GDP growth of 3.3% foreca st by the IMF for 2011 is encouraging and the 
economy appears set to retrace its path to the high  annual average growth rate of 5.5% achieved 
during 2005-08. 
234. We have noted the generally liberal and business- oriented foreign investment regime of the 
United Arab Emirates and the special provisions for Free Zones and domestic companies that are at least 51% owned by the nationals. However, the invest ment regime is perceived to continue to limit 
foreign investment and competition between local and foreign investors, except in the Free Zones. We 
further note that the country is in the process of pr eparing a federal law on foreign investment to serve 
as a one-stop-shop law, which will regulate foreign investors' rights and protect and promote foreign 
investments, including allowing 100% foreign equity investments, with a view to creating favourable 
conditions for foreign investment and transfer of know-how. We commend the country's reform 
efforts in this regard. 
235. We note, with appreciation, that the United Ar ab Emirates, which is an active WTO Member, 
has put in place a trade regime that is open, with low tariff average of around 4.9%, and a few non-
tariff barriers to trade, which has brought benefits  to the economy. The country has made significant 
progress to streamline procedures for customs docum entation and reduced clearance time since the WT/TPR/M/262 
Page 36  
 
  last review, thereby facilitating trade. We note th at the United Arab Emirates is lagging behind in its 
notifications to the WTO, with most having last been made in 2000-01 and we support fully that the 
country be availed the necessary technical assistance to  enable it to meet its commitments in this and 
other trade-related areas. 
236. We commend the United Arab Emirates for its efforts to diversify the economy away from oil 
and develop the manufacturing sector, which have le d to important developments being achieved in 
aluminium production and pharmaceutical products. We ha ve noted that tourism growth has become a 
cornerstone of the country's plan for a diversifie d economy over the past decade as the country set to 
invest in infrastructure and successfully attracted visitors, both for business and leisure purposes. Such 
efforts have also seen the country's airline industr y recently spread its wings to my country, where a 
lot of business and tourism potential exist.   WT/TPR/M/262 
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  V. REPLIES BY THE REPRESENTATIVE OF THE UNITED ARAB EMIRATES AND 
ADDITIONAL COMMENTS 
237. At the outset, I would like to reiterate what I have already stressed in my opening statement, 
that the UAE will continue to uphold its free-market  strategy. The Government is firmly committed to 
pursuing its progressive economic agenda, focused around economic liberalization and 
diversification. It is also committed to reviewi ng all existing policies in order to make them as 
resilient, adaptable, and responsive to future challenges.   
238. During our meetings, we have been very pleased to see this high level of interest in the TPR 
of the UAE, which has been clearly re flected in the statements of the delegates. My special thanks to 
all of you.  Most of the delegates have commended the efforts exerted by the UAE to overcome the 
effects of the global economic crisis , and to gain back its growth momentum.  I would like to assure 
you that we have also taken note of the recommenda tions concerning the areas where further attention 
is needed.  
239. I am happy to report that the UAE has replied to  most of the questions that were submitted by 
the Members. In fact, 219 out of 222 questions ha ve been answered in due time. We strongly hope 
that the responses we have provided were comprehensive to the extent possible. 
240. During the first session of the Review, many remarks and concerns were raised. Let me 
summarize our response and comments in this regard .  We are pleased to note that almost all the 
statements made by the members have highlighted the substantial and sustainable trade flow between 
their respective countries and the UAE. It's not su rprising that the UAE has been ranked among the 
top 20 trading countries according to the 2011 WTO World Trade Report.  This is clear evidence of 
our liberal and efficient trade regime, as well as our firm adherence to the multilateral trading system. 
241. As for the specific topics raised in the statements  of the distinguished delegates, such as trade 
foreign investment regime, trade agencies, the re quirement of UAE local services agent, competition 
and IPR draft laws, government procurement, not ification of the GCC customs union, and the 
consideration of further liberalization of some services sectors, we cordially invite the Members to 
consider our detailed written res ponses transmitted to the WTO Secretariat. Should there be any 
further queries or clarifications, we remain, of course, at the entire disposal of the members to provide them accordingly. 
242. The UAE will exert all necessary efforts to fu lly meet its notification obligations, in 
accordance with the WTO agreements. It is worth not ing that the UAE has already benefited from the 
technical assistance provided by the WTO Secretaria t, in identifying areas where notifications are 
required, and the appropriate format of such notifi cations.  The UAE intends to deepen its technical 
cooperation with the WTO Secretariat to finali ze and submit the pending notifications, including 
those related to SPS and agriculture agreements. 
243. In connection with the goals aimed by the UAE vision 2021 in the international trade area, the 
UAE Ministry of Foreign Trade was established to  achieve the following strategic goals:  design an 
efficient foreign trade policy;  defend the trade interests of the UAE at the international level;  
enhance the trade competitiveness of  the UAE in the regional and International markets;  and promote 
the country as an international hub for trade.  For further information on MoFT related or ministry vision please visit: www.moft.gov.ae.  All of those strategic goals are dedicated to boosting and strengthening the UAE's trade position at the regional and global level. 
244. In closing, I would like to reiterate the exce llent opportunity offered by the TPR exercise for 
the UAE to hear insightful views and recommendations on how to improve the quality of our trade WT/TPR/M/262 
Page 38  
 
  policy.  The UAE can assure the Members that t hose recommendations will be discussed internally to 
identify the most appropriate ways of dea ling with them in the current policies.  
DISCUSSANT 
245. The delegation of the UAE received more than  220 questions which is reflective of the 
immense interest of Members in the UAE economy and in promoting trade and economic ties with the 
country. They are also reflective of the active role  played by the UAE bilaterally, regionally and 
multilaterally as a trading nation.  I hope that this trade policy review will serve as a useful basis for 
further enhancing UAE's trade and commercial engagement with the rest of the world. 
246. During this TPR, the UAE has been commended by Members for its open and liberal trading 
regime characterized by a simple tariff structure, lo w applied tariffs and few non-tariff barriers. It has 
also been appreciated for its strong economic performance and for not resorting to any protectionist 
measures despite the global economic crisis. Members have welcomed the UAE's progressive 
economic agenda and diversification strategy of pr omoting growth in the services and non-oil sectors, 
particularly air and maritime transport, tel ecommunications and tourism. Its business friendly 
environment and free trade zones have been applauded as a successful model for investment 
promotion. UAE has also been praised for stream lining its customs clearance procedures and for its 
initiatives to introduce new legislation in the areas of  competition and foreign investment that would 
foster foreign participation and transfer of know-how. Its refrain from using any trade remedy 
measures to restrict trade flows was also commented upon.  Members have appreciated the active role 
played by the UAE in the WTO and praised its  commitment to the Doha Development Agenda. 
247. At the same time a few concerns have also been expressed. These include restrictions on 
foreign investment limiting foreign ownership to 49 %; notification of technical regulations, standards 
and conformity procedures; requirement of using lo cal agents; limitations on the number of branches 
permitted to foreign banks; state trading activities;  and SPS standards for the import of animal and 
plant products. I trust that the detailed replies provided by the UAE delegation would assure Members 
of UAE's commitment to address their various concerns and provide Members with a clear 
perspective of UAE's future plans to  introduce further economic reforms.  
248. The UAE's impressive growth performance and successful transformation into a global 
financial and services centre are evidence of the country's single minded dedication to promoting an 
open and liberal trading and investment environm ent. I congratulate the UAE Government for its 
many remarkable achievements and I hope that they will continue on their chosen path of sustained 
liberalization with a view to accomplishing their desired objectives.  
EUROPEAN UNION 
249. The EU would like to acknowledge and express appreciation for the efforts made by the 
delegation of the UAE in presenting its replies to Members' advance questions in a timely manner. 
We have carefully studied the replies, which pr ovide us with valuable information necessary to 
understand the situation in the UAE on i ssues raised in our first submission. 
250. However, we have also presented some additi onal and follow-up questions in the following 
areas: requirements to manufacture, transport and di stribute tobacco products within the UAE;  further 
information on the free trade zones, including on illicit trade and statistics; further clarification on the rules of origin, and on the requirements for the lega lisation of documents and, finally on sanitary and 
phytosanitary (SPS) matters. 
251. We also note that our question 47 from the initial set of replies has not yet been replied. We 
have included a kind reminder on this question in today's submission. We will submit our follow-up  WT/TPR/M/262 
 Page 39 
 
 
  and additional questions to the UAE in writing via the WTO Secretariat and hope the UAE will 
provide its replies within one month after the meeting, according to rules of TPRs.  
252. I would also like to touch upon an issue which we raised in our statement on Tuesday, namely 
- recalling the WTO rules applied to regional inte gration initiatives and in particular, as regards 
Customs Unions, which are solely governed by GATT 1994 Article XXIV.  In this context, allow me 
to again invite the UAE to undertake the necessary measures to ensure that the GCC Customs Union 
complies with these legal requirements. 
253. The EU would also like to acknowledge the UAE 's commitment to multilateral trading system 
and to WTO principles, including transparency. We al so commend it for not resorting to protectionist 
measures during the global downturn.  
UNITED STATES 
254. We would like to offer some follow-up questions.  First, we would like to thank the UAE for 
the efforts to expedite the review of the WTO S ecretariat's draft Factual Presentation on the GCC 
Customs Union and look forward to its completion. 
255. Next, we would like to follow up on the need for legalise certificates.  For what purpose does 
the UAE require a certificate of origin for all imports, even those not applying for preferential 
treatment, given that it does not apply non-preferential rules of origin? 
256. We also have a follow-up question with respect  to the ESMA.  We note that in light of 
provisions J and L of the Code of Good Practice, how  can other stakeholders or interested parties not 
identified by the ESMA learn about draft standards and be involved in the process of drafting and 
commenting? 
257. We thank the UAE for the clarification regarding compulsory licensing provisions in Article 
24 and 27 of Federal Law 31(2006).  We would appreciate if the UAE could provide additional 
information regarding what is contained in Article 27(1), and explain how this provision fits into the 
UAE's scheme for compulsory licensing. 
258. Finally, regarding the UAE quota system, we would appreciate if the UAE could confirm that 
Resolution No. 1187 of 2010 regulates Emiratization hiring quotas?  If so, please provide additional 
details about Resolution No. 1187, including the categories created under the regulation, and how a company can move from one category to another.  
PAKISTAN 
259. Pakistan appreciates the efforts made by the Government of the UAE in providing replies to 
the questions submitted by Pakistan.  This review  process has been very successful in analysing the 
set of policies which had led the UAE to its deve lopment process.  We also appreciate the full 
commitment to the multilateral trading system, and in our view, the UAE provides a very good model 
showing full commitment to improve the quality of  life of their nationals without resulting to 
protectionism. WT/TPR/M/262 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
260. This second Trade Policy Review of the United Arab Emirates has given us a much better 
understanding of the recent developments in its trad e and trade-related policies and practices together 
with the future challenges that it faces. We are gr ateful for the active participation of the Emirati 
delegation headed by H.E. Sheikha Lubna Bint Khalid  Al Qasimi, Minister of Foreign Trade.  I would 
also like to thank the discussant,  Mrs. Reenat Sandhu, Deputy Permanent Representative of India and 
Members of the TPRB for contributing to our fruitful exchange of views.  
261. Members commended the UAE for the bold steps taken to diversify the economy away from 
oil and gas. The UAE's high export earnings and op en trade regime, with a simple average MFN 
applied tariff of 4.9% in 2011, ha ve enabled it to successfully weather the global crisis without 
backsliding on trade liberalization. Members encourag ed the UAE to continue its reforms in order to 
achieve its goal, based on the UAE Vision 2021, to transform the economy into one that is 
knowledge-based, highly productive, and competitive. A key challenge for the UAE is to expand 
foreign participation in investment projects outsi de free trade zones, for which the current 49% 
foreign participation limit constitutes an obstacle.  Members also invited the UAE to improve its 
competition regime by adopting full-fledged competition legislation.  
262. Members welcomed the UAE's commitment to the multilateral trading system and 
encouraged it to further foster its participation gi ven that it benefits from the open trading system and 
is relying on trade for its own goals of economic di versification. The UAE participates in two regional 
trade agreements, the Gulf Cooperation Counc il (GCC) and the Greater-Arab Free Trade Area 
(GAFTA). Members requested the UAE to work with its GCC partners to fully consolidate the GCC's 
customs union and to ensure that the customs uni on is reviewed as soon as possible under the WTO 
Transparency Mechanism.   
263. The numerous statements, questions and replies voiced in the course of this Review have 
highlighted some key areas for further action or improvements.  I note from the UAE's statements that action is already being taken or is bein g considered in several of these areas: 
 Tariffs, customs and trade facilitation:  While recognizing the UAE's relatively low level 
of tariff protection, Members encouraged further action, including bringing its bound rates close to its applied tariff rates, and requested mo re information regarding the list of "special 
goods". Members also encouraged the UAE to facilitate the pro cess to obtain a trade licence 
and to remove requirements for the legalizati on and consularization of trade documents.   
 Investment and business environment:  Acknowledging that the UAE's investment regime 
was currently more restrictive than its trade regime, Members welcomed current efforts to 
further promote foreign investment.  They en couraged the UAE to speed-up the promulgation 
of its new law on the liberalization of fore ign investment and modernize the business 
environment. Members also encouraged the UAE to eliminate local services/agent 
requirements, and to increase the transpar ency, accountability, and effectiveness of 
government administration.    WT/TPR/M/262 
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   SPS and TBT:   The UAE was encouraged to improve transparency through prompt WTO 
notifications and by allowing interested par ties more time to review and comment on TBT 
and SPS measures, while eliminating certain tec hnical requirements to further reduce the cost 
for traders. Members also invited the UAE to  adopt international standards as national or 
GCC standards, wherever possible. We've not ed the UAE's stated need for technical 
assistance in this area and hope that adequate  and timely cooperation will be forthcoming. 
 Government procurement:  Members invited the UAE to c onsider amending its government 
procurement regime by removing the requireme nt to employ a UAE national in order to 
submit tenders and to review its transparency procedures for all bidders as well as its offset 
programme.  The UAE was also invited to join  the Government Procurement Agreement as 
soon as possible.  
 Competition:  Acknowledging the current absence of fu ll-fledged competition legislation, 
Members commended the UAE for preparing a draft competition policy law and urged to 
bring it into effect as soon as possible. Questions were raised about the procedures and 
criteria for fixing prices and the exemptions of state-owned enterprises and small and medium-sized enterprises from competition regulations.   
 Intellectual property:  Members welcomed the passage of new legislation on protection of 
undisclosed information, and requested more information on compulsory licensing and on the programmes to increase awareness of IP protec tion. They encouraged the UAE to further 
strengthen its implementati on and enforcement actions.  
 Energy:   The UAE was encouraged to take further steps towards easing current foreign direct 
investment restrictions in the oil and gas sectors.  
 Services:   Noting the progress made by the UAE in the liber alization of trade in services, 
Members expressed their concern about certain re strictions such as the need to use local 
agents and limiting foreign par ticipation especially in the transport and telecommunications 
sectors. They encouraged the UAE to introdu ce more competition into these key sectors and 
to remove restrictions on foreign participation.  
 Financial Services:   Some Members requested the UAE to relax restrictions on new licences 
for foreign banks and branches of foreign banks.  In the area of insurance services, Members 
called for the lifting of the moratorium for ne w licences and to increase foreign equity in 
domestic insurance companies.  
264. In conclusion, this Review has confirmed th e important role played by the UAE in the 
multilateral trading system and the benefits of ma intaining an open economy.  We wish the UAE all 
the success as it continues to move along the pa th of a more open and competitive trade and 
investment regime.  Once again, I thank the delegation of the UAE led by Minister H.E.  Sheikha 
Lubna Al Qasimi, the discussant and Members for c ontributing to an informative and interesting 
review.  I also wish to express my appreciation to  the delegation of the UAE for its oral and written 
responses during the meeting.  We look forward to receiving any outstanding responses within the 
coming month. 
 
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