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Geographical
Location |
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The
United Arab Emirates (UAE) comprises seven members: Abu Dhabi
(the capital city), Dubai, Sharjah, Ajman, Umm Al Quwain,
Ras Al Khaimah and Fujairah, which is located in Middle East,
bordering the Gulf of Oman and the Persian Gulf, between Oman
and Saudi Arabia. While Dubai is situated on the banks of
the Dubai Creek, a natural inlet from the Gulf, which divides
the city into the Deira district to its north, and Bur Dubai
on its south.
The total area of the country is about 83,600 square kilometres,
much of it in Abu Dhabi emirate. Dubai, with an area of 3,885
square kilometres, is the second largest emirate. Since the
Ruler's office, together with many head offices of major companies,
Port Rashid, the Dubai World Trade Centre, customs, broadcasting
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stations and the postal authority are all situated in Bur Dubai, it
ranks as the UAE's most important port and commercial centre.
The major part
of the Dubai emirate consists of rolling sand dunes lapping the
foothills of the arid Hajar mountains in the east. Dubai city is
built along the edge of a narrow 10-kilometre long, winding creek
which divides the southern section of Bur Dubai, the city's traditional
heart, from the northern area of Deira.
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Population |
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The population of the
U.A.E. is around 3,488,000 in 2001, and Dubai's population is approximately
1,029,00.
Only 22% of
the emirateˇ¦s population, at the last count, were actually ethnically
emirate in a population mixture that has to be one of the worldˇ¦s
most cosmopolitan. There are large groups of Indians, Pakistanis,
Iranians and Southeast Asians.
The sex ratio
of Dubaiˇ¦s male to female is 1.46 to 1.
The literacy
rate in Dubai is around 80%.
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Language |
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The
official language is Arabic.
English, Urdu and Hindi are widely spoken and understood. Arabic
and English are the official business languages.
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Currency |
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The official currency is Emirati dirham (AED). |
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Economy |
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The
UAE has an open economy with a high per capita income and a sizable
annual trade surplus. Its wealth is based on oil and gas output
(about 38% of GDP), and the fortunes of the economy fluctuate with
the prices of those commodities. Petroleum production is centred
in Abu Dhabi and Dubai. Industrial development is essentially petroleum
related and is limited by a lack of trained personnel and raw materials.
The
non-oil sector of the economy currently contributes some 80% of
the total produced domestic products of Dubai and is continuing
to expand in importance. This long trading tradition earned Dubai
the reputation within the Middle East as the ˇ§City of Merchantsˇ¨
remains an important consideration for foreign companies looking
at opportunities in the region today.
Despite
a relatively small population, Dubai's total imports in 1994 exceeded
$14 billion. It is not only because Dubai is the major re-export
centre for the region, but also due to Dubai's rapidly developing
role as a supplier to such emerging markets as India, the CIS, Central
Asia and South Africa. |
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Government |
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The Federal
Supreme Council (FSC) of the UAE, comprising the hereditary sheikhs
-- also known as emirs, and hence the area ruled by an emir is known
as an emirate -- who control the seven traditional sheikhdoms (Abu
Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras al-Khaimah and Fujairah
-- each emirate is named after its principal town) and choose president
and vice president from among themselves for five-year term. Since
1971, the ruler of Abu Dhabi, Sheikh Zaid bin Sultan al-Nahayan, has
been president.
A parliament known as the Federal National Council (FNC) was established
on 13th February 1972 and is considered a landmark in the country's
constitutional and legislative process. The FNC advises the Cabinet
and the Supreme Council but cannot overrule them. According to the
constitution, the FNC consists of 40 members who are drawn proportionately
from each of the seven emirates. Each ruler appoints the members
for his emirate.
There are no elections or legal political parties in the UAE.
While Abu Dhabi is the centre of federal government activities,
most ministerial departments also maintain offices in Dubai.
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Law
and Taxation |
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Federal
court system introduced in 1971; all emirates except Dubayy (Dubai)
and Ra's al Khaymah are not fully integrated into the federal system;
all emirates have secular and Islamic law for civil, criminal, and
high courts. Dubai
has civil, criminal and Shariah (Islamic) Courts of first instance.
All court decisions may be brought to the Dubai Court of Appeal.
Thereafter, a final appeal may be made to the Dubai Court of Cassation.
For the Union Supreme Court, judges are appointed by the president.
The
Civil Court (as opposed to the Shariah court) has jurisdiction over
labour, civil and commercial transactions, as well as personal matters
(e.g. wills, divorces etc) relating to non-Muslims. The language
of the Courts is Arabic and advocates admitted to plead are Arab
nationals.
The
principle corporate legislations is Jebel Ali Free Zone Offshore
Companies Regulations 2003. According to the regulation, there is
no corporate tax in Dubai. The only exceptions to this are for oil
producing companies and branches of foreign banks. Likewise, there
are no personal taxes. Direct taxation is against the traditions
of the UAE and it is highly unlikely that it will be introduced
in the near future.
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Local
Infrastructure |
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Dubai is
served by more than 170 shipping lines and more than 86 airlines offering
links to over 100 cities worldwide. The strong shipping and transportation
sector is composed of most of the leading regional and international
freight forwarders, insurers and shipping agents.
The postal system in the UAE is very modern and the post offices
are among the most efficient in the Gulf. Between the UAE and Europe
or the USA, mail takes about ten days. To Australia, mail takes
about eight to ten days.
There is an excellent telephone system and you can phone anywhere
in the world from the most remote areas. Throughout the country
there are telephone offices which are equipped to send and receive
fax, telex and telegraph messages.
Dubai has a rapidly developing high quality manufacturing sector
and a buoyant and prosperous domestic market. In a nutshell its
infrastructure and services match the highest international standards. |
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Advantages |
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Free enterprise system.
- Highly developed transport infrastructure.
- State-of-the-art telecommunications.
- Sophisticated financial and services sector.
- Top international exhibition and conference venue.
- High quality office and residential accommodation.
- Reliable power, utilities etc.
- First class hotels, hospitals, schools, shops etc.
- Cosmopolitan lifestyle.
- No corporate taxes and income taxes.
- No foreign exchange controls.
- No trade barriers.
- Competitive import duties (4% with many exemptions), labour costs,
energy costs, real estate costs. |
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