Long recognized as the leading regional trading hub in the Middle East, Dubai has transformed itself in recent years into a truly international business centre of global significance.

Dubai has expanded its trading activity beyond its traditional base in the Arab Gulf Cooperation Council states (the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman) and Iran. Today, the city offers international companies an ideal gateway for developing their business throughout the Middle East, Asian subcontinent, East Africa, the Eastern Mediterranean, CIS and Central Asia. For example, during the first six months of 1996, Dubai's top ten re-export markets were countries as diverse as Iran, India, Saudi Arabia, Azerbaijan, Afghanistan, Kuwait, Russia, Turkey, Oman and Pakistan.

Increasingly, international companies are recognising that Dubai's expanded business horizons cover many of the most interesting emerging markets for the future. The region has a combined population of 1.4 billion, and a large proportion of this total will enter the international consumer market for the first time in the 21st century.

While oil has been crucial to Dubai's development since the late 1960s, the non-oil sector currently contributes some 90% of total gross domestic product and is continuing to expand in importance. Manufacturing, tourism and services are all growing strongly, helping to create a well balanced and diversified economy. However, trade remains the lifeblood of Dubai's business life, as it has for generations.

This long trading tradition, which earned Dubai the reputation within the Middle East as the city of merchants, remains an important consideration for foreign companies looking at opportunities in the region today. It is reflected not just in a regulatory environment, which is open and liberal, but also in the local business community's thorough familiarity with international commercial practices and in the city's cosmopolitan lifestyle.

As a regional business base, Dubai is strategically located midway between the Far East and Europe on the east-west trading routes and between the former Soviet Union and Africa on the north-south axis. Its airport, which ranks as one of the world’s busiest in terms of transit passengers, is linked to more than 200 destinations via some 130 airlines and Dubai Ports Authority - the operator of Port Rashid and Jebel Ali Port - is unrivalled throughout the region in terms of both facilities and efficiency.

The second largest of the seven emirates which constitute the United Arab Emirates, Dubai is politically stable and is open to business with all countries of the world, excluding Israel.

Dubai has no taxes on profits or incomes; it offers complete freedom of capital movement; it boasts a sophisticated financial and services sector; its communications facilities are excellent; and the cost structure for doing business is highly competitive.

Apart from its attractions as a regional office location, Dubai also offers incoming companies excellent facilities for establishing manufacturing and distribution operations. In the Jebel Ali Free Zone and the new Airport Free Zone, overseas companies are permitted to set up wholly-owned ventures and can enjoy an array of incentives, including exemption from import duties, in addition to the favourable investment conditions which prevail elsewhere in Dubai.

With these advantages and incentives in place, Dubai has not surprisingly attracted a massive inflow of investment in recent years.

Aside from the economic advantages of using Dubai as a business base, international businessmen can be assured that the city offers a superb quality of life for themselves and their families. Dubai is tolerant, welcoming and virtually crime-free. The lifestyle is international, with luxury residential and office accommodation, good educational, health and shopping facilities. Sporting and leisure interests are well catered for and Dubai's top class international hotels offer a wide range of dining, entertainment and nightlife.

Direct Trade

International manufacturers and exporters may conduct business with Dubai by concluding transactions directly with importers and traders who are already established in the market. This type of arms' length arrangement may be suitable for low volume trade. However, for an on-going business relationship, overseas companies may want to consider a more permanent form of representation.

Commercial Agencies

A foreign company wishing to supply goods and services from abroad, but without establishing a physical presence in Dubai, may find it advantageous to appoint a commercial agent. The main provision of the Federal Commercial Agency Law No. 18 of 1981 as amended by Law No. 14 of 1988 is that an agent must be a UAE national, or a company 100% owned by UAE nationals.

A commercial agent may not carry out activities in the UAE unless its name is entered in the Commercial Agency Registry maintained at the Ministry of Economy and Commerce. The procedures and conditions for such an appointment are as follows:

A commercial agency agreement should be drawn up specifying the products and territories to be covered by the contract;

The agreement should be signed by both parties (pand agent) and, if signed in Dubai, legalised before a Court Notary Public. The agreement should then be translated into Arabic by a sworn translator licensed to operate within the UAE. The services of sworn translators are readily available in Dubai.

If the agency agreement is signed outside the UAE:

• it must be authenticated by a local notary public;
• the local Ministry of Foreign Affairs must then certify and authenticate the signature and seal of the notary public;
• the agency agreement must be certified by the UAE Embassy or Consulate or, where none exists, the Embassy of any other Arab country;
• when the documents arrive in the UAE they should be taken to the Foreign Ministry, so that the stamp of the UAE Embassy or Consulate may be authenticated, and translated into Arabic by a sworn translator licensed to operate within the UAE;

The agency should be registered at the Federal Ministry of Economy and Commerce.

Principals may seek the services of a sole agent in the UAE or may appoint a commercial agent in each emirate or for each product. In practice, many overseas companies appoint several agents to cover different defined areas of the country. A commercial agent is entitled to territorial exclusivity and, as such, will receive infringement commissions on transactions concluded by the principal himself or through others within the agent's area of activity.

Although the term of the agreement may be limited to a specified period, it is not permissible for a principal to terminate an agency agreement without the agent's approval, except for reasons seen as valid by the Commercial Agencies Committee of the Ministry of Economy and Commerce. In the absence of any justifiable reason, the failure to renew an agreement may entail compensation to the former agent. Clearly, therefore, great care should be taken in the initial selection of an agent.

In certain cases, an agent with rights to the entire UAE appoints distributors in the other emirates or enters a joint venture or partnership with a national of a neighbouring emirate.

Interactive Map Of Dubai

If you want to identify the location of a place in Dubai, click on this link and use the search and/or directory function in the map: http://www.dtcm-dubaimap.com/applet/map.html

* Source: Country Brand Index. An annual destination brand measurement by Future Brands - a leading branding Agency.