Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in the United Arab Emirates:
- Businesses are open from 8.00am to 1.00pm and 4.00pm to 7.00pm, Saturday to Thursday. Some companies work a straight shift from 8.00am to 6.00pm.
- Government offices are open from 7.30am to 2.00pm, Saturday to Wednesday.
- Banks are generally open from 8.00am to 2.00pm.
- Major shopping centres are open from 10.00am to 10.00pm. Large supermarkets are open everyday, often until midnight.
- All offices are closed on Fridays. Very few retail establishments are open on Friday until after 4.00pm due to prayer time. In traditional areas small shops and businesses may close at prayer times every day.
Business practices:
- 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.
Tariffs and regulations
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
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
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
Weights and measures
The metric system.
Insurance
Normal commercial practice but the insurance company must not have any Israeli connections.
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.
Duty deposit for re-export shipments
Re-export bill of entry to be filed with customs at the time of clearing the shipment.
Import duty deposit of four per cent CIF rounded off to the nearest figure to be made with customs.
Shipments to be re-exported within 180 days. It is mandatory to have the ships inspected before goods are re-exported.
Additional 30 days available to claim refund of the duty deposit.
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.
Inspection
Department of Ports and Customs has designated specific types of commodities for mandatory inspection. An inspection is required in all cases.
Documentation
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
Pro-forma invoice
May be requested for quotes.
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
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.
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.
Certificate of insurance
Inward cargo may not be cleared without the insurance certificate (see 'Insurance' above).
Packing list
A packing list is required, but there is no prescribed format. Details to match the bill of lading description.
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.
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.
Business travel
Airports at Dubai, Abu Dhabi, Sharjah, Al-Ain, Ras Al-Khaimah, and Fujairah all handle international flights, however, Dubai and Abu Dhabi are by far the largest and most commonly used.
Emirates Airlines flies to Dubai from Melbourne and Sydney daily and four times a week from Perth. Gulf Air has a number of flights to Abu Dhabi from Sydney and Melbourne. Both carriers offer connecting flights to other cities in the Middle East and Europe and have very good reputations for safety and reliability. A number of other airlines fly to Dubai via Asia including Singapore Airlines, Cathay Pacific, Malaysian Airlines and Royal Brunei.
Visitors may also use priority reception and immigration procedures called 'Marhaba Service'. This may be arranged through your travel company. The cost of the service is about Dh80. Service subscribers are paged at the entrance of the terminal and personally escorted through immigration formalities on a priority basis.
Dubai airport is located about five kilometres from the centre of the city by taxi for about Dh40. The airport is one of the busiest in the region and check-in times are about two hours prior to departure for long-haul flights or 90 minutes for regional flights.
Abu Dhabi airport is located around 30 kilometres from the city centre. Metered taxis cost about Dh50 and limousines are available for about Dh80. Check-in times are the same as for Dubai.
Transportation between the various emirates and cities of the United Arab Emirates (UAE) is by private car or shared taxi. Taxis are plentiful and relatively cheap, and increasingly most taxis in Dubai, Abu Dhabi and Al-Ain have meters. When using non-metered taxis, travellers should agree on a fare before entering the taxi.
A car can be rented at the airport or from hotels in most major cities and towns.
The offices of all the major-rental car companies are located at both airports such as Fast Rent a Car. Rates for car rental vary, starting at about Dh160 for rental and insurance. The first 100 or 150 kilometres per day is usually included in the rental price, with excess miles charged at around 50 fils (A$0.27 approx) per kilometre.
Like most of the Gulf States, however, driving can be quite dangerous. Many drivers do not pause or give way when they should, making it necessary to be very careful when driving in the cities and major towns. Australian driver's licences are usually accepted, although having an international licence is often helpful. A driver can be hired at a nominal fee if you do not wish to drive yourself.
Service taxis and mini-buses also travel between the major cities of the UAE, but can be quite cramped and do not run to exact schedules.
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