INTRODUCTION

The Department of Economic Development (DED)

was established in its current form by Decree no. 25 by His Highness Sheikh Mohammed Bin Rashid Al Maktoum in October 2008. By this decree, DED has been given full responsibility to plan and regulate the overall economic performance of Dubai, supervise its functions and support the economic development to ensure the objectives of the Dubai Strategic Plan are achieved.
As per the decree, four key agencies fall under the umbrella of DED, each with its own responsibility to contribute to the economic agenda for Dubai. These agencies are the Foreign Investment Office, the Export Development Corporation, the Dubai Shopping Festival and the Mohammed Bin Rashid Establishment for Young Business Leaders.
Along with the Business Registration and Licensing Division, the Commercial Compliance and Consumer Protection Division and the Economic Sector Development Division, DED is now responsible for many of the economic development pillars integral to Dubai's continued success.

DED MISSION

To create an environment for sustainable economic development
To enhance the welfare and prosperity of Dubai and the UAE
We will achieve this by:
Providing efficient services to local and international investors and businesses
Identifying and supporting growth of key sectors

DED VISION

Lead and drive the economic development agenda of the Emirate of Dubai.

DED STRATEGIC OBJECTIVES

DED's has a number of key strategic outcomes and is focused on achieving these to ensure sustainable economic development for Dubai.

Achieve real GDP growth of 2% in 2009 though relevant policy measures and updating key economic regulations
Become the voice of Dubai Government in economic matters. We aim to improve local media perception of DED in the areas of economic development, quality of products & services and protection of consumer rights by 25%
Improve the business environment to encourage entrepreneurship and lower the cost of doing business. We aim to improve Dubai's position in the World Bank's Ease of Doing Business report from 47 to 35
Increase the value of exports and foreign investment, and their contribution to the GDP
Protect consumers through increasing consumers' awareness of their rights, and solving consumer disputes within 2 business days

ECONOMIC STRATEGY AND PERSPECTIVES

2009 and 2010 will present many global economies with major economic challenges. The economic effects of the slowdown will continue to unfold.

Many economies in the world are revising their economic strategy and Dubai, as a globalized economy is no different. Sectors that have historically contributed to the growth of the emirate are witnessing slowdowns therefore we ask the question: Is the current focus for development going to sustain future economic growth?

Given this, the DED has combined its efforts with various public and private stakeholders to achieve the task of reviewing our existing strategic direction and identifying new opportunities given the change in our economic climate.

The DED is also developing a comprehensive program of policy recommendations and initiatives for development of SMEs in Dubai. SMEs are the backbone of Dubai's economy and represent 95% of all businesses registered in the UAE.

The objective of the SME strategy is to ensure the global competitiveness of Dubai-based SMEs through establishing an enabling business environment, including better access to capital as well as enhanced participation of public and private stakeholders. Proposed strategy will allow Dubai to harness the opportunities availed as a consequence of global economic slowdown on one hand while at the same time provides much needed stability and sustainability to the economy.

The SME focus will further enable our economy to move from capital and labor intensive to a new dimension of innovative and technology driven economy underpinned by high degree of efficiencies and levels of productivity. Such a long term objectives will be achieved by a two-pronged approach. Immediate measures will be undertaken aimed at addressing the issues of access to and cost of funds while concurrently developing comprehensive blue print of institutional set up including SME Development Agency, specialized SME financing vehicles, rating and reporting infrastructure etc.

In addition, DED has identified the key factors driving the growth of SMEs as well as those that may impede their future development. Appropriate policies and initiatives are being developed to support the SMEs, including identification of targeted industries and clusters, extension of preferential treatments to SMEs and investor attraction. Similarly, policies and initiatives consider addressing the various financial and legal barriers to entry and growth of SME's.

BUSINESS EXCELLENCE IN DUBAI

In promoting and enhancing business excellence in Dubai, the DED's Business Excellence Center runs a number of awards each year designed to recognize and reward role model organizations and provide a 'roadmap' to achieve excellence through the adoption of good practices and soundly-based approaches that are deployed systematically and are continuously measured and reviewed.

The DED promotes excellence in quality, human development and customer service through the following programs:

Dubai Quality Award
Dubai Human Development Award
Dubai Service Excellence Scheme

DUBAI ECONOMY

Dubai has changed dramatically over the last three decades, becoming a major business center with a more dynamic and diversified economy. Dubai enjoys a strategic location and serves as the biggest re-exporting center in the Middle East.

Its low logistical and operational costs and excellent infrastructure, international outlook and liberal government policies are attracting investors in a big way. Activities such as trade, transport, tourism, industry and finance have shown steady growth and helped the economy to achieve a high degree of expansion and diversification.

INVESTMENT IN DUBAI

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf's leading multi-purpose business center and regional hub city but also the forefront of the globe's dynamic and emerging market economies. Dubai with its ancient commercial and seafaring traditions has long been recognized as the Middle East region's leading trading hub and emerged as its key re-export center.

In more recent years, the Emirate has become a major venue for a number of growing and profitable industries and business activities like meetings, conferences, exhibitions, tourisms, corporate regional headquarters, regional transports, distribution and logistics centers, banking, finance and insurance business, industrial consulting, information and communications technology, and light and medium manufacturing. All these developments became possible due to Dubai's warm and welcoming people, world class facilities and infrastructure, farsightedness as well as open and liberal economic policies.

Finally, committed to a progressive vision of itself and to diversify its economy Dubai has emerged as the Arabian Gulf's premier international business center contributing to this ongoing success story.

BUSINESS EXCELLENCE IN DUBAI

The DED promotes excellence in quality, human development and customer service through the following programs:

Dubai Quality Award
Dubai Human Development Award
Dubai Service Excellence Scheme

DUBAI ECONOMY

INVESTMENT IN DUBAI

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf's leading multi-purpose business center and regional hub city but also the forefront of the globe's dynamic and emerging market economies. Dubai with its ancient commercial and seafaring traditions has long been recognized as the Middle East region's leading trading hub and emerged as its key re-export center.

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf's leading multi-purpose business center and regional hub city but also the forefront of the globe's dynamic and emerging market economies. Dubai with its ancient commercial and seafaring traditions has long been recognized as the Middle East region's leading trading hub and emerged as its key re-export center.

Finally, committed to a progressive vision of itself and to diversify its economy Dubai has emerged as the Arabian Gulf's premier international business center contributing to this ongoing success story.

DUBAI’S KEY ADVANTAGES BEING IN STRATEGIC LOCATION

Dubai is a time zone bridge between the Far East and Europe on the East – West axis and the CIS and Africa on the North – South axis. It is a gateway to a market that can be characterized as:

LARGE – well established trading links exist with greater than 1.5 billion people in the neighboring regions covering the Gulf, Middle East, Eastern Mediterranean, CIS, Central Asia, Africa and the Asian Sub-Continent.
GROWING – Dubai's total international trade has grown on the average of over 11% per year since 1988 and its regional economic growth and liberalization should boost demand further.
PROSPEROUS – a buoyant local economy strategically located in the midst of one of the worlds richest regions well endowed with ample supplies of cheap energy and primary aluminum, also adjacent to major regional suppliers of vital agro-export commodities.
DIVERSIFIED – varied and significant import requirements generate opportunities for product suppliers and re-exporters.
ACCESSIBLE – served by over 120 shipping lines and linked via 85 airlines to over 130 global destinations.
OPEN – no exchange controls, quotas or trade barriers.

POLITICAL AND ECONOMIC STABILITY

Dubai is part of the U. A. E. which has a low-crime and politically stable country. Also, the U. A. E. enjoys financial and monetary stability. It has well developed and sophisticated banking systems that features extensive credit facilities and sample liquidity.

The Emirate's emerging capital markets are built on a basis of leading edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights. The U. A. E. benefits from table and harmonious industrial relations.

Finally, there is a well defined and sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for Limited Liability Companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zone enterprises. All of these factors reflect positively in Dubai being assigned an investment grade rating for fixed income investment by Moody's Investors Service.

WORLD CLASS INFRASTRUCTURE AND SERVICE SECTOR

Dubai's deliberate policy of investing heavily in transport, telecommunications, energy and industrial infrastructure has enabled it to have one of the best infrastructure facilities in the world. It has also contributed significantly to its ongoing prosperity and reasons in attracting international business.

The Emirate features a network of seven industrial areas, one business park and three highly successful and specialized free zones of international distinction, two world class seaports, a major international airport and cargo village, a modern highway network, state-of-the-art telecommunications and reliable power and utilities all of which delivers efficiency, flexibility, reliability, reasonable cost and size.

Complementing its world class infrastructure is a sophisticated service sector that features leading regional and international freight forwarders, shipping companies, insurers, in addition to major international hotels, banks and financial service firms, lawyers, accounting firms, consultants, advertising agencies, top international exhibition and conference facilities, high quality office and residential accommodation, first class hospitals, schools, shopping centers and recreational facilities.

COMPETITIVE COST STRUCTURE

International companies setting up in Dubai can obtain significant cost advantages not generally available internationally. The major factors includes no foreign exchange controls, no trade barriers or quotas, competitive import duties (4% with many exemptions), competitive labour cost (labour force is multi – lingual and highly skilled), competitive real estate costs, competitive financing cost and high levels of liquidity, no corporate profit or personal income taxes (except for oil companies and branches of foreign banks).

HIGH QUALITY OF LIFE, EXCELLENT LIVING CONDITIONS

Dubai's private sector has invested heavily in real estate such as hotels, residential and commercial properties, recreational and leisure facilities. In addition, a number of factors have contributed to the Emirate's high quality of life and superior living conditions making it a model location for many to emulate.

Those factors include excellent infrastructural facilities, low crime, clean environment, tolerance and cultural diversity, cosmopolitan lifestyle, modern public administration, availability of a wide range of consumer goods and services, mild winters and clean, palm fringed beaches.

STRONG LOCAL COMMERCIAL TRADITION AND WIDE CHOICE OF POTENTIAL BUSINESS PARTNERS

The local business class has a long tradition of trading activity and wide exposure to international business practices and state-of-the-art technologies. Local entrepreneurs have already gained successful experience with international partnerships in franchising, licensing, joint ventures, etc. in various sectors of the economy.

EXTENSIVE FOREIGN TRADE NETWORK AND MAJOR ACHIEVEMENTS IN EXPORT AND RE-EXPORT PERFORMANCE

Dubai boasts an extensive foreign trade network extending to 179 states thus offering the investor an extensive choice of potential global marketing outlets for a diverse portfolio of goods and services. As a member of the U. A. E. federation, Dubai is also part of the world's third largest export and re-export center after Hong Kong and Singapore.

RAPIDLY DEVELOPING MANUFACTURING SECTOR PRODUCING A WIDE RANGE OF HIGH QUALITY, COMPETITIVE EXPORT PRODUCTS

Major gains have already been made in the profitable manufacture and export of aluminum ingots, fabricated metal products, textiles and ready-made garments, gold and jewelry, prepared foodstuffs, consumer electronics, refined petroleum, chemical and non-metallic mineral products. Supportive commercial, industrial, political and economic factors are currently in place that makes the extension of these gains possible to other manufacturing sub-sectors.

SETTING UP A BUSINESS IN DUBAI

Prior to operating any business in Dubai, the steps outlined below must be undertaken in order to meet the legal requirements of all concerned government authorities and to guarantee maximum commercial benefit for the business owner:

Determine the category/categories (commercial, industrial and/or professional) and type of business activity/activities to be practiced. Please determine all the related business activities that can be included within each business license, subject to a maximum of ten activities per license.
Determine the appropriate business legal form for your business taking into consideration the desired business activity/activities and the number and nationalities of the business owners.
Confirm all the requirements of the license to be issued
Determine the trade name of the business. You can reserve your trade name online at http://www.dubaided.gov.ae
Submit an application to the DED for an Initial Approval and registering the trade name, either by a personal visit to the Department Offices and its external branches or through the website http://www.dubaided.gov.ae
After getting the Initial Approval you can lease premises and contact the counter of the Planning Department of Dubai Municipality in order to verify that the premises are suitable for your business.
Prepare all required documents and submit an application to the DED or one of our external branches for paying the required fees to obtain a final license.
Submit an application to one of the DED external branches for a signboard permit for a business trade name as required by the economic regulations.

DED OFFICES

To make accessing DED services easier, we have four branches located in Dubai for our customers' convenience.

Deira: DED Main Branch
Old Town : Dubai Mall – Next to Dubai Mall Management Offices
Al Twar: Al Twar Center

For more information on location and services offered, please call: 700040000

LEGAL FORMS OF BUSINESSES IN DUBAI

There are a number of different legal forms for business establishment in Dubai. These are described as follows:

INDIVIDUAL ESTABLISHMENT

It is an establishment owned by a sole proprietor to operate an economic activity (commercial, professional, industrial, agricultural or real property). An establishment's financial liability is linked to the proprietor who shall be responsible for all its financial obligations.

CIVIL COMPANIES

A civil Company is each company that undertakes directly a specific profession as its target and partners depend, for their earnings, on the practicing of activities which involve the use or investment of intellectual faculties more than depending on speculation, materials, or others' work.

Under Dubai Local Order No. 63 of 1991 on licensing professionals and tradesmen in the Emirate of Dubai, it is allowed for a number of normal individuals to practices a service or professional activity as distinct form, a commercial one, the business takes the form of a “Business Partnership” in accordance with the provisions of the rules (from 683 to 690) of the Federal Civil Dealings Law. Professional companies may be 100% foreign owned. However, it is necessary to appoint a “Local Service Agent”.

The obligations of the local service agent towards his principal and third parties shall be restricted to render the usual experience in order to enable him to practice the professional or craftsmanship work without holding any responsibility or financial commitment in respect of his principle's business or activity inside the Emirate or abroad. The relations between the two parties shall be regulated by any agency agreement.

COMMERCIAL COMPANIES

Legal forms of commercial companies, pursuant to Federal Law No. 8 of 1984 as amended, is summarized below. For more information you may refer to the said Law which is available at DED's library, offices of legal consultants and advocates, as well as in commercial libraries in the United Arab Emirates.

GENERAL PARTNERSHIP

A general partnership is an arrangement between two or more partners whereby each of the partners is jointly and severally liable to the extent of all their assets for the company's liabilities.

Only UAE nationals are allowed to be partners in a general partnership.

The name of the company shall be made up of the name of all partners, and its name might be limited to the name of one or more partners and adding a word to modify the presence of the company. In addition to that the company may have a special commercial name, if the name of a person other than the partners was mentioned in the name while he is aware of that, the said person shall be responsible in partnership for the company's obligations.

All partners shall be considered a dealer, and the bankruptcy of any partner leads to the bankruptcy of all partners.

The company shares may not be represented in negotiable certificates.

Partners are severally responsible in all their money for the company's obligations and any agreement to the contrary might not be made against Third Parties.

The company administration shall be undertaken by all partners, unless the company contract or an independent contract assigns the administration to a partner or to a non partner party.

SIMPLE LIMITED PARTNERSHIP

A simple limited partnership is a company formed by one or more general partners liable for the company liabilities to the extent of all their assets, and one or more limited partners liable for the company liabilities to the extent of their respective shares in the capital.

Only UAE nationals are allowed to be general partners.

The name of the company shall be made up of the name of one or more of the limited partners, adding a word to modify the presence of the company. In addition to that the company may have a special commercial name.

The name of the limited partner may not be mentioned in the company name, if it was mentioned with his knowledge of that, he shall be considered a partner for Third Parties in good faith.

The simple limited partnership shall be a partnership for all partners and shall be subject to all the rules of partnerships, based on the following:

The simple liability contract shall include in addition to the other data, the name of each limited partner, his surname, nationality, date of birth, country, capital share, and the part paid of it.
The limited partner is only liable towards the company's debtors with his capital share.
A limited partner may not intervene in the company administration-related issues related to others even if upon authorization, he may rather require a copy of the loss / profit accounts and the balance sheet and check the validity of the data by reviewing the company's records and documents by himself or by a representative from any of the partners or others provided that this does not harm the company.
If the limited partner violates the above mentioned ban, he shall be responsible in all businesses for all the obligations resulting from his business.
The limited partner may be held responsible in all his money for all company's obligations if the business administration he carried out leads others to believe that he is one of the ultimate actual partners, in which case the rules and regulations of the actual partners shall apply to the limited partner.
If the limited partners carried out any of the banned administration business based upon an explicit or implicit authorization from the partners, such partners shall be held responsible with him for the obligations resulting from such acts.
Limited partnership shall issue resolutions in consensus of all partners and limited partners, unless the contract states a majority, and the majority in number shall be considered, unless otherwise stated.
Resolutions to amend the company contract shall not be passed unless duly approved in consensus of all partners and limited partners.

PRIVATE JOINT STOCK COMPANY

A number of founders, not less than three, may establish a Private Joint Stock Company.

The shares of a Private Joint stock Company cannot be offered to the public or for the Public Subscription.

The founders must subscribe all capital and minimum requirement for such capital is Dh. 2 million.

A Private Joint stock Company is subject to all rules and regulations pertaining Private Joint stock Companies, except for rules and regulations of the Public Subscription.

A Private Joint Stock Company may be converted into a Public Joint Stock Company and in order to do so the following conditions must be satisfied:

The nominal value of the issued shares is fully paid up.
A period of not less than two financial years has expired.
During the two years preceding the application for conversion, the company has achieved net profits, distributable to the shareholders whose average is not less than 10% of the capital
A resolution of the extraordinary assembly for the conversion of the company is adopted by a majority of three-quarters of the company capital.

LIMITED LIABILITY COMPANY (LLC)

A Limited Liability Company is one with limited liability, where the number of partners may not exceed fifty and should not be less than two. Each of the partners shall only be liable to the extent of his share in the capital. The partners' participation should not be represented by negotiable certificates.

The name of the Limited Liability Company shall be taken from its purpose or from one or more of the names of partners, the statement Limited Liability Company shall be added to the company's name, stating the company's capital.

Other than the insurance, banking, and investment businesses for others, the Limited Liability Company shall be entitled to practice any legal business.

The company may not resort to Public Subscription to make up its capital or to increase it or to get the necessary loans, and it may not issue any negotiable stocks or shares.

The minimum share capital shall be Dhs 300.000 divided into equal shares with a minimum face value of Dh. 1.000 per share.

Shares may not be divided, and if several people owned it, they shall choose one to be an individual owner against the company, and it may fix for the share owners a time for such selection, provided that after that date, the share may be sold to its owners, in which case partners shall enjoy a priority in purchase.

Losses and profits shall be divided equally among shares unless otherwise herein stated.

The share of each partner shall be transferred his heirs and the ones mentioned in the will shall be treated as heirs.

A Limited Liability Company can be managed by manager / managers that may be selected from among the partners or any other parties providing that they do not exceed a total of five persons.

The manager / managers shall be appointed by memorandum of association or by a separate management contract for limited/unlimited terms. If the manager/managers are not appointed as stated in the above paragraph, the General Assembly of the partners will appoint them.

Unless otherwise stated in the MOA, the company manager shall enjoy full powers of administration, and his acts shall be binding to the Company, provided that it is supported with stating the capacity he enjoys.

The manager's resolution shall be as responsible as that of the company board, all conditions in the company contract contrary to that shall be invalid.

PARTNERSHIP LIMITED WITH SHARES (PLS) (LLC)

A Partnership Limited with Shares is a company formed by general partners who are jointly liable to the extent of all their shares for the company liabilities and participating partners who are liable only to the extent of their shares in the capital.

For the general partners, the company shall be a general partnership, and the general partner shall be a dealer even if he did not enjoy such capacity before entering the company, all general partners must be nationals.

The capital of Partnerships Limited with Shares shall be divided into negotiable equal shares.

The company shall be named after the name of one or more of the general partners. Its name may be added to another innovative name or a name derived from its purpose.

The rules related to the incorporation of limited liability partnerships shall apply to Partnerships Limited with Shares, according to the following:

All general partners and other founding parties shall sign the MOA and its regulations, and their resolutions shall be as effective and valid as the founders of the limited liability companies.
Names of the general partners, their surnames, nationalities, and countries shall be stated in the company contract and its regulations.
The minimum share capital requirement for limited partnership is Dhs. 500.000.
The documents issued by Partnerships Limited with Shares shall be subject to the same rules of the documents issued by the Limited Liability Partnerships.

FOREIGN COMPANIES

Excluding the foreign countries licensed to practice its business in the country free zones, foreign countries may not practice its main business in the state, and may not establish branches unless licensed to do that by the Ministry of Economy after obtaining the approval of the concerned authorities, which license shall specify the business it is licensed to practice, provided that such license may not be issued unless the company has a national agent, and if the agent was a company, it shall hold the state's nationality and all its partners shall be nationals.

The obligations of the agent towards his company and third parties shall be limited to rendering the services required for the company without holding any responsibility or financial commitment in respect of his company's branch or office business or activity inside the Emirate or abroad.

Foreign companies licensed to work in the state based on the provisions of the above paragraph may not start their business in the state unless they are registered in the Foreign Companies Register in the Ministry of Economy.

The offices and branches of the foreign companies shall be the headquarters of its business and its business shall be subject to the provisions of the law.

The foreign companies, its offices, and branches shall have an independent budget, independent profit /loss accounts, and shall have an auditor.

If the foreign companies, or their offices, or branches practiced their business inside the state without carrying out the abovementioned provisions, the persons practicing such business shall be personally and severally responsible for that.

COMMERCIAL PROTECTION

The Department's main concern is to ensure, in coordination with other relevant government authorities, that all laws and regulations are implemented to protect licensees in the Emirate and the investments they have made in promoting their various establishments and products.

Function of Commercial Protection

The missions of the Commercial Protection Section include:

Proving violations accordance with the rulings of the laws on deceit and fraud, infringement of trademarks and infringement of commercial agencies.
The effective execution of the rules and regulations, policies and procedures and the Department's plans pertaining to the function of the Commercial Protection Section.
Receiving complaints related to commercial protection from companies, establishments and consumers.
The effective contribution in introducing the public (consumers) and the business to the negative effects of deceit and fraud.

DED E-SERVICES

DED is offering selected services online to provide investors, company owners, and PRO's with the right tools to easily interact with the Department. Without the need to register with DED, you can access our informational services to plan and follow-up your transactions making your experience with DED more smooth, transparent and efficient.

Function of Commercial Protection

http://www.dubaided.gov.ae