INVESMENT OPPORTUNITIES A PERSPECTIVE FOR THE UNITED ARAB EMIRATES 1 UAE GDP 1973 2016 USD Billions 1
UAE GDP 2005 2016 Actual 2017 2019 - Forecast USD Billions 2
5 of 11 UNITED ARAB EMIRATES Formation 2 nd December 1971 United Arab Emirates Federal Government of Seven Emirates -Abu Dhabi -Dubai -Sharjah -Ajman -Umm Al Quain -Ras Al Khaimah -Fujairah 3
UNITED ARAB EMIRATES Accomplishments: Among the top 10 richest countries in the world. Among top 10 oil producers - 2.5 million barrels a day. Low crime rate, one of the lowest in the world: 19 of every 1000. Spread of education at a ratio of one teacher for every 12 students. Spread of health services: a doctor for every 311 patient, and a hospital bed for every 853 patients. Development of communications and transport WHY INVEST IN THE UAE? Benefits: Political stability Access to regional/ global markets No taxes on income Lack of financial risks Stability in economic legislation Low customs tariffs Advanced infrastructure Freehold ownership 4
written KEY permission LESSONS from Navigate Consulting INFRASTRUCTURE PEOPLE DEVELOPMENT CAREER GROWTH INNOVATION OLD WITH THE NEW TOLERANCE INCLUSIVENESS DIVERSIFICATION BRAND BUILDING [DRAW IN REACH OUT] EASE OF BUSINESS written KEY permission LESSONS from Navigate Consulting AND THEY ARE NOT STOPPING HERE THE JOURNEY CONTINUES 5
INVESTMENT SECTORS Hospitality & Tourism Events & Exhibitions Real Estate Construction Infrastructure FMCG Energy Sector Industrial Sectors Telecommunications Transportation INVESTMENT SECTORS Hospitality & Tourism Hospitality and tourism is one of the fastest-growing sectors in the world. Hospitality is about passion: passion to work with people, passion to work hard, passion for service. UAE s tourism is booming and the hospitality industry is becoming a top investment choice. 6
INVESTMENT SECTORS Hospitality & Tourism Factors for its exponential growth: 1. Developments have made modern tourism one of the key drivers for socio-economic progress and more affluence throughout the world. 2. Improvements in technology: travelling today is much quicker and considerably less expensive. 3. The wide choices, with vacation packages by destination travel and ecotourism, which encourages travelers to go to places and in ways that match their interests and values. INVESTMENT SECTORS Hospitality & Tourism UAE ranked number 1 in terms of tourism competitiveness, based on the following criteria: Safety and security Health and hygiene Infrastructure Information and communication technology Price competitiveness Human capital Culture and natural resources Preordination of tourism and policy rules and regulations 7
INVESTMENT SECTORS Hospitality & Tourism According to the United Nations World Travel Organisation (UNWTO), the number of travellers in the Middle East more than doubled, from 24.1 million to 60.3 million between 2000 and 2010. This level of growth is unique in the world and it happened despite the volatility experienced in certain parts of the region. Dubai, for example, welcomed 10 million visitors last 2012 and keeps growing, with its ambitious plan to welcome 20 million visitors by 2020. This growth means investment, which allows innovation in building hotels, innovation in service, international mix and diversity. INVESTMENT SECTORS Events & Exhibitions With the UAE winning the bid to host Expo 2020, Investors from around the world eyeing the country once again as a high-returns investment haven. 8
INVESTMENT SECTORS Real Estate UAE real estate is an active and dynamic sector. Land is owned by the government of each emirate and land ownership, leasing, and freehold rights are left to the discretion of each emirate. However, in all most emirates, acquisition of land for commercial or private purposes is permitted in certain areas and governed by each emirate's own legislations. INVESTMENT SECTORS Construction After going through a slowdown during the global financial crisis in 2008 and with the current recovery in GCC economies, the UAE construction industry is projected to exhibit sustainable growth prospects in the next few years. Construction sector as a percentage of GDP of the UAE reached 10.6% in 2008 and 10.3% in 2011 while for 2015 and 2021 the sector s contribution as a percentage of UAE GDP is projected to record 11.1% and 11.5% respectively. Source: dubaichamber.com 9
INVESTMENT SECTORS Construction INVESTMENT SECTORS FMCG The Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors globally and is arguably one of the fastest paced and most competitive. 10
INVESTMENT SECTORS FMCG There are many different definitions and differing views as to whether some products are categorised as FMCG or not, however a broad definition is that FMCG products are typically frequently purchased essential or non-essential goods such as food, toiletries, drinks and other similar personal consumables that are inexpensive. INVESTMENT SECTORS Energy Sector The UAE has the world's sixth largest proven reserves of conventional crude oil and fifth largest proven reserves of natural gas. Oil and gas production has been the mainstay of the economy in the UAE and will remain a major revenue earner long into the future, due to the vast hydrocarbon reserves at the country's disposal. At the current rate of utilization, and excluding any new discoveries, the reserves will last for over 150 years, as one of the leading suppliers of crude oil world wide. 11
INVESTMENT SECTORS Industrial Sectors In addition to its strong position in the Oil and Gas industry, the UAE offers significant industry potential in a range of diversified industries. Logistics Manufacturing Food and Beverage Transport and Equipment Machinery and Mechanical Equipment Chemicals Community Support INVESTMENT SECTORS Telecommunications Sector The telecommunications licensees are the following: The Emirates Telecommunications Corporation -ETISALAT Emirates Integrated Telecommunication Company PJSC - du 12
INVESTMENT SECTORS Telecommunications Sector Who can apply for a License? An entity shall be eligible for an individual or Class License if it is A company incorporated under the Commercial Companies Law (Federal Law No. 8 of 1984) and pursuant to Article 28 of the Federal Law by Decree No. (3) of 2003, Regarding the Organisation of the Telecommunications Sector and its amendments or any legal person approved by the Board of the Authority; and A company whose shareholding complies with the resolution in which the particular Regulated Activity has been approved to be licensed INVESTMENT SECTORS Transportation Transport has rapidly become a strategic priority. The objective is to make the UAE a major transport hub between Europe and South-East Asia. Passenger and cargo transportation have risen in importance over the last few years. According to the World Travel and Tourism Council, international visitor arrivals to the Middle East are forecast to reach 90 million by 2016. 13
INVESTMENT SECTORS Transportation Aviation Seaports and Shipping Roads Transportation Rail FREE ZONES The UAE's first free zone was established in 1980. The free zone in the UAE success in attracting foreign investment and technological expertise and the growth of re-exports and transshipment as a major commercial activity led all the emirates to create such free zones to attract inward investment, employment generation, and significant economic development. 14
FREE ZONES Advantages No corporate or personal taxes; Freedom to repatriate capital and profits; Low import duties except on tobacco and spirits; No exchange restrictions; 100% foreign ownership of companies, and hence a full control over their activities. FREE ZONES Dubai Free Zones Jebel Ali Free Zone Dubai Airport Dubai Silicon Oasis Dubai Multi Commodities Center Dubai Media City Dubai Studio City Dubai Academic City Dubai Knowledge Village Dubai Outsource Zone Dubai Biotech Research Park Dubai International Financial Centre Dubai Logistics City Dubai Maritime City Dubai Flower Centre Mohammad Bin Rashid Technology Park - Jebel Ali Area Heavy Equipment and Trucks Zone (HETZ) 15
FREE ZONES Dubai Car and Automotive City (DUCAMZ) Dubai Health Care City (DHCC) Dubai Internet City (DIC) Dubai Technology and Media International Humanitarian City Dubai Carpet Free Zone International Media and Production Zone Dubai Free Zones Dubai Industrial City (DIC) Dubai Textile Village Dubai International Arbitration Center (DIAC) Virtuzone Dubai JLT Free Zone (JLT) Economic Zones World (EZW) - Jafza International, Techno Park, Gazeley, Dubai Auto Zone FREE ZONES Jebel Ali Free Zone (Jafza) Jebel Ali Free Zone (Jafza) was the first zone established in the UAE in 1980. Jafza is a part of Dubai-based state owned Economic Zones World, one of the world's biggest developers of Economic Zones, Logistics and R&D driven Industrial Parks. Jafza is built over an area of 48 square kilometres and it ranks among the world's largest, and the fastest growing free zones. 16
Jebel Ali Free Zone (Jafza) Why Jafza? 100% foreign ownership. 0% corporate tax for 50 years (a concession that is renewable). No restriction on capital repatriation. 0% import or re-export duties. 0% personal income tax. No currency restrictions. No restriction on foreign talent or employees. Ability to mortgage your premises to a bank or financing company. Onsite Customs. Jebel Ali Free Zone (Jafza) There are a range of tailor-made facilities available in Jafza. Each facility is designed to meet the specific needs of a range of activities to make sure your company gets the best out of its base in the Free Zone. Plots of Land Showrooms Warehouses Customized Solution Offices Business Park Retail Outlets On-Site Residence 17
Jebel Ali Free Zone (Jafza) Formation In order to establish a company within Jebel Ali Free Zone an investor(s) can choose one of the following formation types: 1. Free Zone Company (FZCo); for 2 to 5 shareholders FZCo registration allows for multiple shareholders. Shareholders can be individuals (person) and/or nonindividuals (company). An FZCo is essentially a Limited Liability Partnership within the Free Zone. Jebel Ali Free Zone (Jafza) 2. Free Zone Establishment (FZE); for single shareholders FZE registration allows for a single shareholder. Shareholder can be an individual (person) and/or non-individual (company). An FZE is essentially a Limited Liability Partnership within the Free Zone. 3. Branch; for existing companies wishing to establish a base in Jafza A branch is considered a legal entity of its parent company. An entity established outside of the Jebel Ali Free Zone may establish a branch within Jafza. 18
Jebel Ali Free Zone (Jafza) License & Activity 1. Trading A Trading License allows the holder to import, export, distribute and store items specified on the license. In addition to this, there is a General Trading License which allows the holder access to a wider range of activities and a broader range of items on the license. Jebel Ali Free Zone (Jafza) 2. Service A Service License allows the holder to carry out the services specified on the license within the Free Zone. A Logistics License allows firms to engage in logistic services such as Cargo (sea, land, air), warehousing, storage, packing, transshipment and distribution. 3. Industrial An Industrial License allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product. 19
Jebel Ali Free Zone (Jafza) License Fees Dubai Airport Free Zone (Dafza) Established in 1996 as part of Dubai Government's strategic plan to move the emirate towards an investment driven economy, Dubai Airport Freezone has grown to become the region's fastest growing free zone. Located next to Dubai International Airport, Dubai Airport Freezone provides unrivalled access to 24- hour logistics services, world-class facilities and infrastructure. 20
Dubai Airport Free Zone (Dafza) Why Dafza? Strategic location in the heart of Dubai and neighboring Dubai International Airport State of the art infrastructure and facilities Dedicated Logistics Centre and extensive cargo handling facilities Direct access to government services: Immigration, Customs, Chamber of Commerce One stop shop for all administrative services Easy access to the facilities at Dubai International Airport with its connectivity to 220 destinations through 130 airlines Dubai Airport Free Zone (Dafza) Types of Companies Free Zone Establishment (FZE) Formed with a minimum of one shareholder and a maximum of 50, either individual (a person) or nonindividual (a company). A minimum share capital of AED 1000/- is required. Each share should be in the denomination of AED 1000/- Branch Office of an existing company A foreign company can set up a branch of its existing company in Dubai Airport Freezone. No share capital is required. 21
Dubai Airport Free Zone (Dafza) License & Activity Trade License: import, export, distribution, storage of specific products. Service License: requires consultation with a sales executive. Industrial License: light manufacturing, processing, assembling and packaging. Dubai Silicon Oasis Authority (DSO) Who Can Be Here As the region's technology park, DSO caters to the technology sector and supporting companies and services. Hi-Tech Sector Mobile Technologies Internet Data Centre Software / SAAS Semiconductor Other Sectors IT, Telecom, Electrical, Electronic, Engineering Consultants, Law Firms Bio-tech, Automobile, Aerospace, Oil & Gas 22
Dubai Silicon Oasis Authority (DSO) Types of Activities at DSO Company headquarter offices, sales & marketing, support offices training centres, etc. Import/export, distribution, testing and checking, etc. Assembly & packing Manufacturing & Storage Dubai Silicon Oasis Authority (DSO) Commercial Facilities Offices Warehouse & Light Industrial Units Land for Development Conference Facilities Shops, Restaurants & Amenities 23
Dubai Silicon Oasis Authority (DSO) Set Up Your Business Document Checklist Application Form Letter of Intent Passport Copy(s) NOC for UAE residents only Bank statement/reference letter or audited financial report Company business plan Dubai Silicon Oasis Authority (DSO) Set Up Your Business Time Taken Application process = 7days Registration = Variable (depending on the provision of legal documentation by the applicant) License & Lease Agreement Issue = Within 2 days from receipt of all legal documents and payment Please ensure that your applications included all required documents. 24
Dubai Multi Commodities Centre DMCC is the fastest growing free zone development in the UAE, the Jumeirah Lakes Towers district is a 200-hectare, mixed-use waterfront development facilitating both business and community living by offering commercial, residential and retail property for sale and lease. From multi-national organisations and major regional industry participants, to SMEs and start-ups from all across the globe, today there are over 8,000 companies utilising our facilities, infrastructure, products and services. Dubai Multi Commodities Centre Why DMCC? Prime Business Destination Financial Incentives Quality Property Business on your doorstep 25
Dubai Multi Commodities Centre Commodities: Gold Diamonds Tea Pearls Agro Commodities Base Metals 26
27
28
29
30
31
32
INVESMENT OPPORTUNITIES A PERSPECTIVE FOR PROFESSIONALS 66 67 of 11 33
68 of 11 69 of 11 34
70 of 11 71 of 11 35
72 of 11 73 of 11 36
74 of 11 75 of 11 37
76 of 11 77 of 11 38
78 of 11 www.navigate.ae IF YOU HAVE QUESTIONS LATER email ask@navigate.ae THANK YOU FOR YOUR ATTENTION ANY QUESTIONS? @hanakhoda https://www.linkedin.com/in/nakhoda 39