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Abu Dhabi's International Trade
In line with the Abu Dhabi Economic Vision 2030 to explore new avenues of economic growth, Abu Dhabi is intensifying its efforts to develop the national capacities and resources to improve the Emirate’s competitiveness in international trade. It has crafted a comprehensive strategy that focuses on developing and supporting the non-oil export sector, preparing local products for more penetration and competition in international markets and establishing free trade agreements with regional and global economies with an aim to achieve high growth rates in the export of both goods and services. With the establishment of state of the art facilities, effective regulatory frameworks and an exports development agency, Abu Dhabi’s export sector is poised to grow fivefold in the coming years.
On the national level, the UAE economy, with a declining share of the oil sector in GDP growth, has become the second-largest and the most diversified in the Arab world today. The measures taken by the country to tackle the financial crisis boosted the international confidence in the national economy and the UAE jumped 14 notches in the Ease of Doing Business Index 2010 released by the International Finance Corporation (IFC) and the World Bank. Data from the UAE Central Bank also reveals that the UAE’s trade balance with its foreign trade partners remains in favour of the country.
- Abu Dhabi: A leading Hub for International Trade
- Trade Incentive Package
- Protection of Intellectual Property in Abu Dhabi
- Export Development Agency
- Advisory Committee on Free Trade Agreements
- Free Trade Agreements of the UAE
- Ministry of Foreign Trade
- Foreign Investment Law
- Trade Fairs
- Workshops for Export Promotion
Abu Dhabi: A leading Hub for International Trade
Abu Dhabi follows a flexible and open economic approach with the rest of the world by establishing healthy economic links and forging regional and international trade alliances that focus on a policy of partnership and achieving realistic and long term objectives. The close relations that exist between Abu Dhabi and other nations based on mutual respect and a shared vision to achieve prosperity for all nations substantially contribute to flourishing trade and other commercial activities between the Emirate and the outside world.
What distinguishes the economy of the Emirate from other regional economies is the unique concept of utilising huge oil revenues in launching innovative projects with international dimensions inside the country, especially in the fields of alternative energy, peaceful nuclear energy, advanced technology, space technology and other innovative industries and sectors that attract wide international attention, expertise and investments. The Emirate is also using its surging oil revenues to develop modern cities, state of the art infrastructure and a wide transportation network.
Moreover, Abu Dhabi Emirates does not have problems of fiscal deficit, public debts or alarming rates of unemployment which overburden many governments both in developed and developing world. With the attention rapidly shifting to the development of other economic sectors including heavy industries, financial services, tourism, petrochemicals and real estate, the Emirate is not heavily relying on the oil sector as the key driver of the economic growth.
To find the latest facts and figures on Abu Dhabi's foreign trade, you can read the article "Business in Abu Dhabi"
TopTrade Incentive Package
The incentive package offered by the Emirate of Abu Dhabi to both local and international investors in various economic sectors mainly includes exemption of companies and individuals from all types of income and corporate taxes, non-existence of any restrictions on capital or profit repatriation, keeping customs tariffs as low as 5%, full tax exemption on all intermediate and capital goods used in production and 100% foreign ownership in free zones.
In addition, robust GDP growth, stable currency, simplified import and export procedures, economic and political stability are other factors that make Abu Dhabi a front runner to become a leading trading hub in the region.
Various economic sectors and enterprises in the Emirate benefit from a number of export incentives including direct and indirect financial and non financial support. Export subsidies are one of the several types of financial supports provided by the government to stimulate export growth and encourage local producers to enhance their competitiveness in the international markets. There are two types of subsidies. Direct financial support which comes in the form of cash payment and the indirect support which allows local producers to benefit from some privileges such as exemption from certain taxes imposed locally on the export of goods or reduction of transportation costs by using governmental transport facilities or provision of low-interest loans from industrial banks.
Protection of Intellectual Property in Abu Dhabi
To raise its profile in the international trade arena and protect the society from the harmful effects of counterfeit goods and services that destroy the national economy, Abu Dhabi enforces stringent rules and regulations to protect intellectual property rights and combat all types of commercial fraud. The Emirate has a well established legal framework that complies with international standards to protect intellectual works.
To know more about the protection of Intellectual Property in Abu Dhabi, please read the article "Protection of Intellectual Property in Abu Dhabi"
TopExport Development Agency
The Department of Economic Development (DED) in Abu Dhabi is planning to set up an export development agency which is awaiting final approval from the Executive Council of Abu Dhabi. The agency will be tasked with supporting non-oil exporters and small and medium enterprises, stimulating demand for the local products in the international markets, diversifying the Emirate’s export range by redesigning the production structure and enabling national companies to face the competition in the local and international markets. The agency will establish a special fund to support exports and provide national companies with financial grants within the framework of the country’s international obligations. Companies will be able to get technical support and access to trade-related information from the agency and will be encouraged to adopt modern technology and best international standards. The agency will also organise local and international trade fairs to discover new markets and to introduce and promote local products and industries under the slogan “Made in Abu Dhabi”.
TopAdvisory Committee on Free Trade Agreements
Abu Dhabi has formed an Advisory Committee on Free Trade Agreements to help the Emirate identify opportunities for its strategic goods that can be exported to international markets. The agency takes effective steps to open up international markets for national products and lift trade barriers between Abu Dhabi and the countries that are negotiating free trade agreements with the Emirate in order to facilitate the export of goods and services to these markets.
The trade liberation is one of the key aspects of free trade agreements where custom tariffs and non-custom barriers are eliminated or lowered on the exchange of goods and services among the signatories of the trade agreements, thus increasing the volume of trade and enhancing the penetration of national products to other markets.
The advisory committee specifies the negotiating position of Abu Dhabi Emirate in trade-related negotiations by identifying goods that come under free trade agreements. The Committee also works on preparing a list of products with export potentials and enhancing their competitiveness.
The committee is also responsible for identifying the sectors where foreign service providers can be allowed to provide services in the local market including sectors of transportation, telecommunications, financial services, tourism, consulting, among others.
TopFree Trade Agreements of the UAE
To promote economic integration and establish long- term economic cooperation with the regional and global economies, the UAE has entered into several trade, economic, investment and technical agreements with many countries around the world.
The country’s economic, financial and monetary policies and trade, industrial and customs regulations have been brought closer to that of other countries as a giant step towards improving economic relations and using economic integration as an effective tool to promote better understanding among different nations.
To know more about the free trade pacts concluded or being negotiated by the UAE, please read the article "Free Trade Agreements of the UAE"
TopMinistry of Foreign Trade
The initiatives and activities undertaken by the Ministry of Foreign Trade in 2009 have been a key driver in the growth of international trade and have helped the country to accomplish positive results at the macro-economic level.
The Ministry of Foreign Trade, in coordination with various government agencies and private sector institutions, formulates the foreign trade policies of the UAE and represents the country in trade agreement negotiations with other countries in the world. It is also responsible for developing initiatives, programmes and studies that focus on boosting the country’s exports and their competitiveness in international markets and safeguarding the interests of the nation in trade related negotiations. It also studies how to deal with Arab and international trade alliances, advantages of joining forces with them and their impact on the national economy.
TopForeign Investment Law
The Ministry of Foreign Trade is currently drafting a Foreign Investment Law which is in the final stages pending approval of the cabinet and review of the Ministerial Legislation Committee.
Aimed at enhancing the country’s investment climate and fostering economic diversification, the new law guarantees greater protection for foreign investors and includes several incentives to encourage foreign investment.
In addition to providing protection to foreign investments, the law includes benefits and incentives for foreign investors and explains the investor's rights, duties and obligations on a basis of fairness. In addition, it proposes establishing an Investment Department under the Ministry of Economy to be responsible for following up the law enforcement, strengthening confidence in the country's investment environment, introducing investment opportunities and attracting significant foreign investment flow into the UAE economy.
TopTrade Fairs
To consolidate its presence in the global market, the Ministry of Foreign Trade is participating in several international exhibitions in 2010 including the Canton Fair, China in April, Sfax International Fair, Tunisia in June, Kenya International Trade Exhibition, Nairobi in June, South African International Trade Exhibition, Johannesburg in July, Vienna Tec - the International Industrial Trade Fair, Austria in October, Malaysia International Trade Fair, Malaysia in November, Word SME Expo, Hong Kong in December and Expo 2010 Shanghai China, from May to October, in addition to several important international and local exhibitions.
On the other hand, the number of exhibitors participating in trade exhibitions organised in the UAE has also seen a steady increase over the past years pointing to the vibrancy of the UAE economy and its attractiveness to global investors.
TopWorkshops for Export Promotion
Every year, the Department of Economic Development (DED) in Abu Dhabi organises various export development programmes and events. They include workshops designed to explain the role of industrial sector in the development of the Emirate’s economy, export skills, national standards for export development, funding opportunities for export development and communicating with the industry community. DED also organises field visits to factories locally and internationally to get a closer look at the global best practices in the development of exports and to boost cooperation in areas of mutual benefits.
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