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United Arab Emirates

Doing business

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(Last updated: 17 Jun 2009)
 

Business opportunities

Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the left side of this page).

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Business etiquette

Business tips

Business cards in English are acceptable. However, it is a good idea for frequent visitors to the market or those wishing to do business with the government to have business cards in English and Arabic.


‘Small talk’ is vital for the establishment of trust and must not be hurried or dispensed with. In introductory business conversations, talk often centres on the health and wellbeing of the other person, but never about his wife and female relatives.


It is not unusual in the Arab custom of having a number of people in an office all discussing various matters at once. When invited into an office, you will be given a seat, refreshments and be engaged in introductory conversation, after which your host may break off conversation with you and deal with one of his other visitors before returning to you.


Refreshments (eg. coffee, tea) should always be accepted. Coffee is offered to guests in order of their rank, if known to the host. It is customary to drink more than one cup of coffee or tea but not more than your host or others present. To decline a further serving, you shake the cup when handing it back to the server.


Refrain from expressing extreme views as this may be seen as a sign of inflexibility.

Rarely will your host initiate the business discussions. You will normally be expected to commence with a proposal. Keep descriptions short and to-the-point. Remember, a ‘yes’ does not necessarily confirm agreement – but can merely mean, ‘yes, I hear you’.


The exchange of gifts is common practice in business circles but items are usually limited to small corporate items such as pens and brochures.


In business circles, standard dress for men is a business suit and tie. For evening functions, the formality of dress can vary from a sports coat to a business suit with tie. For casual occasions, trousers and a shirt are acceptable.


Women should wear loose fitting garments, such as a long dress or loose fitting trousers and a baggy shirt. Dress conservatively and avoid wearing short skirts or revealing blouses. The head does not need to be covered.


Social etiquette

Arab males usually greet each other with an embrace and a kiss on the cheek or nose and sometimes walk hand-in-hand. Westerners are often greeted with a handshake.


Don’t use your left hand when receiving or offering items as it is considered unclean.

Precedence is always shown for people with seniority in age and visitors should also observe this. For example, ensure that an older or more senior person goes through a door first. Similarly, if walking together, the guest or senior person should be on the right of the group as a mark of respect.


It is considered offensive to sit with the soles of the feet or shoes facing other members of the group.


Care should be taken not to express admiration for something owned by your host, or you may have the object offered to you immediately as a gift. This is an ancient custom, still preserved in many traditional areas.


If invited to dinner by an Arab host, unless otherwise stated, it can generally be assumed that only males will attend the function. Women frequently have separate functions. It may be taken as an affront to refuse an entertainment invitation.


It is unlikely that you will be invited to a person's house, unless the host is very aware of Western culture or you have developed a very strong friendship with the person. If you invite a local to dine with you, do not include his wife in the invitation unless you have a prior indication that she may accept.


Only on rare occasions will a visitor have the opportunity to attend a traditional Arab feast and it is usually an elaborate affair. During the month of Ramadan, you may be invited to an Iftar (fast breaking). It is considered an honour to be invited to an Iftar and should be seen as a sign of trust and friendship.


Forms of address


Gulf nationals are usually addressed by their first or given name. For example, Mr Khalid bin Abdallah Al Thani has the given name of Khalid, is the son of Abdallah, and his family grouping or tribe is Al Thani. He would therefore be called Mr Khalid.


Given the large number of expatriates working in the United Arab Emirates, it is not uncommon for business to be conducted with non-Arab managers (many of Indian origin). Many Indians do not use surnames and often the initial of their father's name is placed in front of their own name. For example, with the name A. Sivam, the ‘A’ is the initial of the father's name. This person can be referred to as Mr Sivam. An Indian woman generally takes her husband's name on marriage. Hence, a Miss R. Selvarajan, could become Mrs A. Sivam or Mrs Sivam Selvarajan.


Knowing a few Arabic words and phrases is always helpful. Some useful phrases include:

  • Hello (informal) – marhaba
  • Hello (formal) – salaam alaykom
  • How are you? – kayf al-haal?
  • I'm fine – ana bi-khayr
  • Thank you (very much) –shukran (jaziilan)
  • Please (to a man) – min fadhlak
  • Please (to a woman) – min fadhlik
  • Goodbye – ma'a salaama
  • The phrase ‘salaam alaykom’ (peace upon you) is heard continually in everyday conversation. The correct reply is to say ‘wa alaykom as-salaam’ (peace upon you also).

Please also note:
Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

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Tariffs and non-tariff barriers

Tariff

The UAE is a member of the Arab Gulf Cooperation Council (AGCC) which utilises a common tariff.

A harmonised rate of five per cent is applied to most imports.

  • Cigarettes - 100 per cent; alcohol, 50 per cent; cigars and tobacco, AED200/- per kilogram or 100 per cent CIF, whichever is higher. Food products are free from duty.
  • Exempt categories only include some food products and medicines.

Customs regulations in the United Arab Emirates (UAE) are quite generous. Visitors are allowed to import:

  • Up to 2000 cigarettes or 400 cigars or two kilograms of tobacco
  • Two litres of wine or spirits (except in Sharjah, where alcohol is banned)

Customs authorities contact details:


Finance Department for Customs Affairs
PO Box 246 Abu Dhabi
Tel: +971 2 665 1500
Fax: +971 2 666 1017


The Department of Port & Customs

PO Box 63, Dubai
Tel: +971 4 345 9575
Fax: +971 4 345 1121


Dubai Ports Authority
PO Box 2149, Dubai
Tel: +971 4 345 1545
Fax: +971 4 345 2002


Jebel Ali Free Zone
PO Box 17000
Jebel Ali Dubai
Tel: +971 4 881 5000
Fax: +971 4 881 6093

Non-tariff barriers

Import restrictions

Only companies in the United Arab Emirates (UAE) that have the appropriate trade licence can import products into the country. Import controls exist for a number of products including alcoholic beverages, pork and pork products, medicinal substances, printed matter such as magazines and videos, photographic material, firearms and fireworks.


The entry of many kinds of products has been banned in accordance with the local values, religious beliefs and morals. The following items are prohibited:

  • goods manufactured in Israel
  • pornographic literature

Special permission is required for the import of:

  • alcohol
  • drugs
  • firearms
  • ammunition and explosives
  • agricultural pesticides
  • industrial alcohol-denatured
  • methyl alcohol
  • methylated and medicated spirits
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Product certification, labelling and packaging

Packing, marking and labelling

Goods should be packed to provide protection against extreme heat and humidity, storage in the open and possible unloading into lighters.


The UAE Ministry Of Health requires all pharmaceutical imports to be carried under temperature-controlled conditions of 25 degrees Centigrade.


Outer containers should bear the consignee's mark and the port mark. The latter is essential, as most wharf labourers cannot read English.


Labels of imported goods/food need to have the following standard information and should be in English and Arabic:

  • product and brand
  • ingredients, in descending order of proportion
  • additives using their 'E' numbers (group names are also accepted)
  • the origin of all animal fats
  • net contents in metric units
  • production and expiry date
  • country of origin
  • manufacturer's name and address
  • special storage and preparation instructions, if any

Special certificates

Livestock require sanitary certificates issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Animal imports must be accompanied by a halal certificate attesting that the slaughter was carried out in accordance with Islamic rites.

All plants and plant products require phytosanitary certification issued by the approved authority in the country of origin.

Supplier's certificate - manufacturer's invoice may be required if purchase is made through a third party. 

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Methods of quoting and payment

Quotes should be in US$ CIF or CIFC (Incoterms 1990) and may be requested in the form of proforma invoices to facilitate opening of letters of credit. The UAE Dirham is valued at a fixed rate against the US dollar.


Methods of duty payment for import shipments are as follows:

  • cash or cheque
  • bank receipt if customs duty has been paid through a bank
  • customs duty debit facility against bank guarantee

Irrevocable letters of credit are recommended until a firm trading relationship has been established.

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Documentary requirements

Required documents for clearance:

  • Valid and relevant trade license copy
  • Delivery order from the shipping or line agent
  • Original supplier's commercial invoice
  • Certificate of origin
  • Packing list

Commercial invoice

No prescribed form. Certification by an approved authority may be requested. The invoice must indicate:

  • country of origin
  • a full description of the goods, including net and gross weights, unit and total value, and details of the packing and should match the details on the bill of lading
  • name of the manufacturer

Bill of lading

May be made out To Order.

The appropriate tariff number should be shown. This should ensure the correct freight rate is applied to the items shipped.

Original copy must be furnished (two original copies minimum).

Original bill if ladings have to be endorsed by the shipper. In case they are not endorsed, a full set (usually three) of originals need to be surrendered to the line.

Packing list

A packing list is required, but there is no prescribed format. Details to match the bill of lading description.

Certificate of origin

 The certificate of origin must include the name and address of the manufacturer.

Must be certified by the UAE Embassy in Canberra and should contain the following clause: We certify that the goods or materials are of Australian origin. Note: Fees are substantial.

At the time of clearance, in case of original commercial invoice, if the certificate of origin and packing list is not available, clearance can be effected on the strength of photocopies and a deposit of Dhs500/-, which can be claimed back if the originals are submitted within 60 days of filing the bill of entry.

Public health requirements

Livestock are inspected upon arrival.


Agricultural pesticides may only be imported by a registered importer holding a valid import licence.


Imports of pharmaceutical products are subject to specific transport regulations (see 'Packing, marking and labelling' above).


Food containing cyclamates is prohibited from entering Abu Dhabi and although there is no legislation prohibiting such food from entering Dubai, the practice is not encouraged.

Insurance

Normal commercial practice but the insurance company must not have any Israeli connections.

Weights and measures

The metric system.

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Taxation

With the exception of foreign banks and oil companies, there is no income tax or consumption tax in the United Arab Emirates. Foreign banks pay a 20 per cent tax on their profits and foreign oil companies pay taxes and royalties on their proceeds. A five per cent customs duty is levied on all imports except certain luxury goods such as tobacco (50-70 per cent).

Tax exemption for approved projects

Austrade works in conjunction with the Australian Taxation Office ('ATO') to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 ('Tax Act').

Section 23AF should assist the international competitiveness of Australian companies and governmental organisations competing to win international tenders. Further information is available.

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Sidebar Content

Sidebar Content

News Feeds


From Gulf News

News Feeds


From Khaleej Times

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

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Disclaimer

Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.