How to Export to UAE ?
Export to UAE : The United Arab Emirates is a country with a population of 9.5 million, of which 85% are immigrants. The UAE gains a large part of its income through the sale of oil and condensates. Over the past few years, policies have been adopted to avoid dependence on oil. At present, Dubai’s income is higher through tourism and real estate. Free zones and investment in these sectors are also being considered.
A large part of the goods imported into this country are re-exported. The UAE government plans to increase investment in health and tourism sectors. A large portion of food is imported in the UAE.
Biggest countries exporter to UAE
|2||United States of America||23 B|
|5||Area Nes||12 B|
Biggest countries importer from UAE
|1||Area Nes||89 B|
|3||Saudi Arabia||14 B|
UAE's Top 5 Exports
|270900||Petroleum oils||66 B|
|271019||Medium oils||18 B|
|271012||Light oils||13 B|
UAE's Top 5 Imports
|851712||mobile telephones||9 B|
|271012||Light oils||7 B|
|870324||Motor cars||5 B|
Marketing in UAE
Even with increasing social media, direct marketing, and online shopping, the commercial tradition of the U.A.E. is still that of the middleman or trader acting as a conduit for goods from large manufacturers to consumers largely in South Asia, the Gulf, and East Africa. Culturally, the U.A.E. is relatively less conservative than some other Gulf States. English is widely spoken but sensitivity to local traditions and Islamic beliefs remains essential. The use of Arabic in packaging and advertising is both desirable and effective (and sometimes mandatory) in marketing consumer goods. For many products, providing after-sale maintenance services is essential.
Market Challenges UAE
Challenges in the UAE are the same as in other countries in the Gulf. One of the limitations is the receipt of contract fees after the completion of the work. It should be noted that the rules are different in each of the 7 emirates. Consequently, you must consider things before resolving dispute resolution issues.
From 2018, the value added tax will increase to 5% in the UAE. This tax runs across the Gulf Council. Keep in mind, however, that this tax does not apply to food, health and education.
Market Opportunities UAE
Despite its moderate size, the emirate offers a wide range of markets for companies in many industries. The best parts are: Oil and Gas; Energy (Nuclear and Renewable); Architecture; Engineering and Construction; Education; Defense; Safety; Aerospace; Health / Medical Equipment; Automotive; Consumer Electronics and Food Industry
Pricing in the UAE market
Pricing in the Emirate market is divided into two parts: coastal or small retail outlets, and large stores specially upstairs. Exporters need to see factors such as storage costs or shelf rentals, annual discounts, and promotional obligations on the market. The cost of renting shelves can affect up to 25% of the price. The retail chain has a margin of between 20% and 25%.It is anticipated that a VAT of 5 percent on certain categories of goods will be introduced in January 2018 with some limited exceptions including basic food items, healthcare, and education. Remember, for tourists, businessmen, high-level employees and some foreigners, pricing is not always the main source of buying and the retail location can be more effective.
Trade restrictions in the UAE market
Ownership Restrictions: As a general rule, a foreign company intending to conduct business in the U.A.E. must do it by: participation in a local company or other commercial entity, establishment of a branch office, appointment of a commercial agent or distributor, or establishment of a branch or subsidiary in one of the free zones of the U.A.E. Outside the free zones, foreign ownership is generally limited to 49 percent, with the remaining 51 percent to be held by U.A.E. nationals. Customs Import Tariffs: Companies located in the numerous free zones across the U.A.E. are exempt from the tariff on imports and re-exports that do not leave the zones. The exceptions to the five percent tariff in the U.A.E. are a 50 percent tariff for alcohol and a 100 percent tariff for tobacco. There are significant restrictions on importation of firearms and pork.
UAE agreements and international agreements
The U.A.E. is party to a number of multilateral and bilateral trade agreements, including with partner countries in the GCC. Under the Greater Arab Free Trade Area Agreement, the U.A.E. has free trade agreements with Syria, Lebanon, Iraq, Morocco and Jordan. According to the U.A.E. Federal Customs Authority, the U.A.E. has also signed agreements with the following countries: Islamic Republic of Pakistan (2006), Republic of Algeria (2007), Republic of Azerbaijan (2011), Republic of India (2012), Republic of Kazakhstan (2012), Republic of Armenia (2013), Republic of Maldives (2014), Republic of South Korea (2015), and Kingdom of the Netherlands (2015). In June 2009 the GCC signed an FTA with the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), which was implemented beginning July 1, 2015.
The strategy for entering the UAE market
Distributors: You need to invite a local person to grow and attend the UAE market. This local factor can market your product in a decent way to open the way for the agent. Finding the right local agent / distributor can be the first vital step to succeed.
Participating in exhibitions is a necessary step for leading industries. Every year, there are a number of international exhibitions in Dubai, not to be overlooked.