become a central Middle East hub for trade and finance, accounting for about 70% of the Emirates' non-oil trade. A.8 Energy, minerals and other natural resources Oil and gas are the country's most significant energy and natural resources. The UAE accommodates proven crude oil reserves of 97.8 billion barrels, or slightly less than 10% of the world total oil reserve, with almost 90% in the emirate of Abu Dhabi. A natural gas reserve of 213 trillion cubic feet makes the UAE the world's fourth largest after Russia, Iran, and Qatar. Increased domestic consumption of electricity and growing demand from the petrochemical industry has provided incentives for the UAE to increase its use of natural gas. Over the last decade, gas consumption in Abu Dhabi has doubled. A.9 Foreign trade Leading exports and imports Exports UAE continues to depend heavily on oil and gas exports. Every day the UAE produce 2.396 million bbl. Oil exports accounts approximately 55% of total exports in 2004 (re-exports were not included). Likewise, refined petroleum products and non-monetary gold constitute a major component of export. Re-exports, aluminum, dried fish and dates are other main UAE exports. The UAE government actively encourages exports of UAE products in efforts to reduce the nation's reliance on oil and gas exports with volatile prices. Imports UAE's leading imports are manufactured goods, machinery and transportation equipment, chemicals, and food. Imports in 2007 saw an increase to US$120.5 billion. Much of the growth stems from consumer goods. Such increases may be attributed to strengthening economic activity in non oil sectors, an increase in demand ensuing from population increase, and the annual increase in re-exports owing to opening of new markets in Africa, and further strengthening of various market in the region and in Asia. UAE is a member of the World Trade Organization (WTO).
Doing business in United Arab Emirates 14 B. Foreign investment B.1 Exchange controls and debt-to-equity requirements There are no restrictions on the transfer of funds into or out of the UAE, except that Israeli currency may not be bought or sold in the UAE. All other currencies are traded freely at market-determined prices. No licence is required to change money. The UAE Dirham has been pegged to the US Dollar at 3.67 Dirhams per Dollar since 1980. Equity capital, debt, interest, dividends, branch profits, royalties, management and technical service fees and personal savings may be remitted freely abroad. The government does not impose debt-to-equity ratio requirements on corporations. B.2 Restrictions on Foreign Investment Under the Commercial Companies Law (CCL), Federal Law No. 8 of 1984, UAE nationals must own a minimum of 51% of all public and private shareholding companies and limited liability companies. Ministerial Decision No. 194 in 2004, allows GCC nationals to set up LLCs without a UAE-national participation.
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- Fall '19
- Nature, United Arab Emirates