While Abu Dhabi, the largest and wealthiest emirate, still has abundant oil and natural gas – the UAE has the seventh largest oil reserves in the world – other emirates have all but run out of oil and have therefore been trying to diversify their economies. Abu Dhabi has joined this effort, investing heavily in other economic sectors, such as banking and finance, construction and real estate, trade and commerce, industry, tourism, and entertainment.
[accordion][toggle title=”Energy” icon=”” open=”false” acc_content=”Abu Dhabi is one of the world’s largest and most strategically positioned energy producers. Cutting-edge renewable projects are allowing the emirate to position itself as a global leader in sustainable energy.
Setting up the Oil and Gas Sectors in UAE
With ADIPEC (Abu Dhabi International Petroleum Exhibition & Conference) returning to the Abu Dhabi National Exhibition Centre from November 12th, 2018, this subject explores the prerequisites for setting up an oil and gas sector company in the capital and outlines the role of the Supreme Petroleum Council Approval (SPC Approval). ADIPEC represents a global opportunity for you to connect with over 2,200 exhibiting companies. Engage with confirmed exhibiting 39 IOCs and NOCs, do business with 8 EPC contractors and 11 Service companies to expand your business portfolio. As a highly regulated industry within the UAE, there is one significant consideration for investors wishing to establish a business within the oil and gas sector; i.e. Supreme Petroleum Council Approval (SPC Approval) The main complexity for foreign investors wishing to set up an oil and gas sector business on-shore in Abu Dhabi is the necessity to find a local partner. As with most countries in the GCC, UAE legislation states that a foreign investor cannot own more than 49% of any business entity in Abu Dhabi, and therefore at least one Emirati partner or UAE Owned Company must be a shareholder in the business, with ownership of at least 51%. As a company formation specialist, Plus UAE can act as the corporate local partner to the foreign investor, providing security and eliminating the requirement to source an individual Emirati stakeholder. Plus UAE has assisted in the successful set up of numerous companies within the oil and gas sector of Abu Dhabi, our expert team have the necessary skills and knowledge to guide you through the Supreme Petroleum Council Approval process quickly and efficiently, and ensure that your business will be both legal and secure.”][/toggle][/accordion] [accordion] [toggle title=”Infrastructure and Transport” icon=”” open=”false” acc_content=”Over the past four decades, since it was founded in 1971, the UAE has propelled itself on the world stage as one of the most dynamic economies in the world. The critical success factor that enabled the UAE’s economic development has been the strategic use of oil revenues that the country’s visionary leadership has invested to create a world-leading physical and social infrastructure-base that will serve as a catalyst for the future development of the country. In so doing, it has been able to navigate the challenge of being an exclusively natural resource economy based on oil. The UAE’s Vision 2021 highlights the importance of infrastructure and aims for the UAE to be among the best in the world in the quality of airports, ports, road infrastructure, and electricity. Leading telecommunications infrastructure will allow the UAE to become a forerunner in the provision of Smart services. Infrastructure and transport companies offer engineering and infrastructure services that include design, development, construction, and operation and maintenance; with a strong emphasis on transport-related projects”][/toggle][toggle title=”Services” icon=”” open=”false” acc_content=”Service license in UAE offers services in the sector of hospitality, facility management, Restaurant, Oil/Gas sector maintenance, finance sector, Tourism etc. For any kind of service, the activity required competent authority approval as per DED and commercial license to practice.”][/toggle]
[/accordion] [accordion] [toggle title=”Industrial Sector” icon=”” open=”false” acc_content=”The Industry Development Office represents one of the main arteries sustaining the Economic boom in Abu Dhabi. Chief among its roles is creating the ideal environment for the development and growth of the Industrial Sector allowing diversification of the Economy of the Emirate and contribute to realizing a Sustainable Economic Development. The Industry Development Office reflects the aspirations of the Government of Abu Dhabi to boost and enhance the Industrial Sector through structuring and enhancement thereof, and contribute towards the promotion of its products and attract the appropriate investments for this Sector. Investors or manufacturers who wish to open a factory in Abu Dhabi can avail the service from Industrial Development Bureau. To open a factory, at least 51% of the company’s capital must be owned by UAE national/corporate or company owned completely by UAE National. Factories can’t be oil or gas extraction factories or refineries and mineral ore extraction or purification factories.”][/toggle]
[/accordion] [accordion] [toggle title=”Agriculture” icon=”” open=”false” acc_content=”Because of the technology uprising in the UAE, the country has become one of the most modern countries in the world. And when it comes specifically to agriculture and agrotechnology, many companies started to invest in the UAE’s agriculture by coming up with new and more advanced machines to help to harvest. Companies have found ways to create the perfect plant growth environment, detect specific bacteria that are harmful to plants, increase the harvest process, etc.”][/toggle]
[/accordion] [accordion][toggle title=”Trade” icon=”” open=”false” acc_content=”With imports totaling $273.5 billion in 2012, UAE passed Saudi Arabia as the largest consumer market in the region. Exports totaled $314 billion, which makes UAE the second largest exporter in the region. With reference to foreign trade, UAE’s market is one of the world’s most dynamic markets worldwide, placed among the 16 largest exporters and 20 largest importers of commodities. Limited Liability Company is the most suitable license for trading companies in UAE as importing activity required more share value for UAE local partner in the license. The current law on commercial entities (Commercial Companies Law) in UAE requires Limited Liability Companies to have at least one Emirati partner. This means the local partner/sponsor(s) must own a minimum of 51 percent of the shares in the LLC and expatriate will be 49 percent shareholder. Foreign Company branch cannot do trading of the product they are manufacturing from home country even if they add importing activity to branch license. The only option for trading is to register the commercial agency for the principal with any local company owned by 100% local or with individual UAE National.”][/toggle][/accordion] [accordion][toggle title=”Tourism” icon=”” open=”false” acc_content=”The Tourism Sector is dedicated to driving the evolution of Abu Dhabi into a world-class destination of distinction through conserving, promoting and leveraging Abu Dhabi’s heritage, culture and leisure assets. When we say economic growth or GDP, we usually think of industries, manufacturing companies, exporting, IT software and trading. But tourism has made a huge difference in many countries economy and especially the developing countries are dependent on travel and tourism. Tourism industry contributes a lot. UAE is one of those countries which has promoted tourism and has been successful. It welcomes thousands of tourists each day, and also Dubai is one of those cities. This has attracted hundreds of investors not only in tourism but also in logistics, cargo, and other travel and tourism industries. To form a company with tourism-related activity procedures are simple as Department of Culture & Tourism integrated with Abu Dhabi Department of Economic Development. We can have LLC or 100% local establishment for tourism activity. We need to appoint a Tourism manager at the time of registering a company with Tourism Degree or Diploma. He or she can be the partner of the company.”][/toggle] [/accordion] [accordion][toggle title=”Banking and Finance” icon=”” open=”false” acc_content=”Abu Dhabi has become a vibrant financial hub in the Gulf region and its financial center was ranked among the top 25 worldwide in 2018 according to the “The Global Financial Centres Index 23” reports published in March 2018. The Abu Dhabi banking industry is underpinned by improving the regulatory framework and largely stable financial performance of the banks with healthy earnings generation. Finance companies can conduct business strictly by the approval of Central Bank of the UAE. Foreign banks can operate in UAE as the foreign commercial bank with sponsoring authority Central Bank. For local finance companies and institutions, it is required 60% share capital for UAE national from total share value and paid-up capital must not be less than AED 35 Million. The elected or legally appointed Board of Directors of the finance company should include a majority of UAE nationals. Professional qualification should be related to finance business.”][/toggle]
[/accordion] [accordion][toggle title=”Construction & Real Estate” icon=”” open=”false” acc_content=”The long-term nature of construction projects in Abu Dhabi has given the construction and the real estate industry confidence and purpose heading into the future. Many large-scale construction projects are underway in Abu Dhabi. Most of these projects are infrastructure upgrades, like the new Midfield Airport Terminal, a USD3.5 billion program that will double the airport’s capacity to 30 million passengers a year upon its completion in early 2019. Abu Dhabi is also constructing Barakah Nuclear Power Plant, the first nuclear plant in the UAE that is expected to supply a quarter of the UAE’s electricity needs, the USD23 billion project will have four reactors when fully operational in 2020. The Construction / Contracting industry is one of the most important sectors in the United Arab Emirates. The construction sector in the country operates with full capacity due to a number of large mega-projects and the increase of the social infrastructure in preparation for the Expo 2020. Construction activity required the license from Abu Dhabi Department of Economic Development and license will be commercial license. Each contracting party in any project, whether the local or foreign contractor must be licensed to carry out their activities in the respective emirate. Real estate activity also required the commercial license to practice in Abu Dhabi. Partners of real estate license need to have qualification related to the scope of activity and required real estate practitioner training registration from Abu Dhabi Vocational Education & Training Institute (ADVETI)”][/toggle]
[/accordion] [accordion][toggle title=”ICT (Information & Communication Technology)” icon=”” open=”false” acc_content=”Since its inception in 1971, the United Arab Emirates has constantly been distinguished as an icon for innovation and creativity, enhancing its social and economic status and transforming into a primary destination for talents and businesses in record time. Believing that innovation is the future of human investment, the UAE Leadership emphasizes its importance across all sectors through the UAE Vision 2021: “Innovation, research, science, and technology will form the pillars of a knowledge-based, highly productive and competitive economy, driven by entrepreneurs in a business-friendly environment where public and private sectors form effective partnerships.””][/toggle]
[/accordion] [accordion][toggle title=”Logistics” icon=”” open=”false” acc_content=”The UAE’s geographical location and infrastructure make it an ideal supply and re-distribution gateway and offer huge growth potential for the operating logistics players. It is strategically located at the center of international trade making it globally well positioned as an emerging transshipment hub. The UAE’s logistics sector is gaining momentum as more and more startups open their shops offering the latest solutions and services, tracking the real-time shipment, beating turnaround time for deliveries and so on. While the UAE may see the blend of conventional logistics players and startups, the challenge now remains how the existing players will face competition from startups who are more equipped in terms of latest technology that offers transparency at a click of a button and the traditional logistic company which is run on years of networking in the industry. According to the recent analysis of DCCI, the UAE’s air freight market will expand by a Compound Annual Growth Rate (CAGR) of 4.8 percent over the 2017-2021 period. Over the same time span, container port traffic in the UAE is expected to rise from 22.4 million TEUs in 2017 to 28.4 TEUs by 2021.”][/toggle]
[/accordion] [accordion][toggle title=”Health” icon=”” open=”false” acc_content=”As the UAE enters a new era in healthcare that is largely driven by mandatory health insurance and Medical tourism, the demand for hospital beds and patient care has multiplied exponentially. SEHA is the corporate marketing name of Abu Dhabi Health Services Company, an independent public joint stock company that owns and operates all public hospitals and clinics across the emirate. ‘SEHA’ is a phonetic rendering of the Arabic word for health. The company was established by Emiri Decree No 10 of 2007 and is a leading participant in the reform of Abu Dhabi’s healthcare sector. The reform seeks to upgrade and improve healthcare delivery to the public at a level comparable to the finest healthcare systems in the world. The program began by separating management and regulation – SEHA assumed responsibility for public healthcare centers and hospitals, while the Department of Health (DOH) was established to regulate the public and private sectors. The two organizations replaced the General Authority for Health Services (GAHS), previously responsible for both roles. Any healthcare facility should be approved by the DOH (Department of Health). For clinics, the first step is to register a trade name with Abu Dhabi Department of Economic Development for health service activity. Need to submit all documents along with partner’s valid details to DOH for preliminary approval. Once the location has been finalized then the layout has to be approved as per specifications of DOH. DOH will approve the facility after conducting final inspections if all necessary requirements were fulfilled. Approved healthcare facility will only be activated after recruiting necessary DOH certified medical director. Based on approval provided by DOH, the Department of Economic Development will issue the trade license. Along with DED issued trade license, medical waste disposal contract with Municipality approved company, medical director registration details and malpractice insurance for medical staff needs to be submitted to get the permanent license from DOH.”][/toggle]
[/accordion] [accordion][toggle title=”Education” icon=”” open=”false” acc_content=”The UAE’s education market will grow from $4.4 billion in 2017 to $7.1 billion by 2023, according to a new report from the Boston Consulting Group (BCG). BGG’s “Where to Invest Now in the GCC Private Education” report identified four drivers of private education growth in the region, including higher private school spending than in OECD counterparts, tuition fees that will continue to grow at between 2 and 4 percent per year and a student-age population expected to grow at a compound annual growth rate (CAGR) of between 1 and 3 percent. Additionally, private school enrolment at the primary level and above is high throughout the region. To open a school needs to get approval from the Department of Education & Knowledge. Abu Dhabi Education Council (ADEC) is the regulatory body that provides licensing and accreditation To private schools in Abu Dhabi. ADEC sets the minimum standards that must be met, in terms of: Educational outcomes, health, and safety, building requirements, site requirements, etc.”][/toggle]
[/accordion] [accordion][toggle title=”Media” icon=”” open=”false” acc_content=”The UAE’s media industry is regulated by the National Media Council (NMC), which was established in 2006 as a result of a series of amendments to law No. 91 of 1972 and the introduction of law No. 1 of 2006. NMC issues licenses to media institutions and follows up on all printed, published and broadcast media content in the country and those imported from abroad. As per the law, NMC is mandated to:
- develop the UAE’s media policy
- draft media legislation and ensure its execution
- co-ordinate the media policy between the emirates in line with the UAE’s domestic and foreign policy
- Ensure support for the federation and project national unity.”][/toggle][/accordion]
Start your Business Today
Contact: PLUS UAE- Abu Dhabi
marketing@plusuae.com
+971 2 4919050