Macroeconomic indicators of the emirate's development.

The UAE economy has successfully passed the test of the world financial crisis and is now picking up again. Abu Dhabi is the main driver of the country's development. In 2011, the GDP of this emirate increased by 8% and amounted to about $160 billion. The number of people employed in the economy over the same period increased by 5% and reached 1.49 million people. Along with the growth of the emirate's economy, the incomes of the local population are growing. According to this indicator, Abu Dhabi is one of the world leaders. Of course, the prosperity of the emirate is largely based on the export of hydrocarbon resources.

However, in Abu Dhabi, both the oil and non-resource sectors of the economy are developing equally successfully. In the first case, this is largely due to the growth in world prices for hydrocarbon resources in 2011. The dynamic development of the non-commodity sector, in turn, is a merit of the government of Abu Dhabi. The authorities of the emirate continue to pursue a policy of economic diversification in order to reduce dependence on price fluctuations for "black gold". According to the Abu Dhabi Statistics Center, from 2001 to 2011, the non-oil sector of the emirate's economy increased by almost 3.5 times. At the same time, the share of private companies operating in the Abu Dhabi market has grown.

In 2011, Abu Dhabi's non-oil share of GDP increased by 8.7%. However, "black gold" still plays a significant role in the emirate's economy and accounts for 54% of its GDP. At the same time, Abu Dhabi accounts for about 94% of all oil produced in the UAE. 92% of the reserves are also located here natural gas Arab Emirates.

Although, according to experts, Abu Dhabi's oil reserves will last for 100 years, the emirate's authorities are actively investing in non-commodity assets: aerospace technologies, telecommunications and IT projects, petrochemicals and environmental technologies. As part of the Masdar City project, the emirate is working on the creation of highly efficient renewable energy sources. In Abu Dhabi, high-tech sectors of the economy, such as aircraft and shipbuilding, are being created almost from scratch. It is expected that by 2018 the first passenger aircraft will be assembled here. To this end, the authorities of the emirate are actively developing a related industry - the production of composite materials.

In the total GDP of Abu Dhabi, according to the results of 2011, the "manufacturing" sector is 12%, the "construction and real estate" sector - 10%. Wholesale and retail, hospitality and industry Catering collected 6% in total. According to analysts, in the next 10 years, $10 billion will be invested in the tourism industry in Abu Dhabi, which means that the share of these sectors in the total GDP of the emirate will increase.

Impressive indicators characterizing the external trading in Abu Dhabi. Total exports, including re-exports, grew by almost 10% to about $91 billion. Other important indicator foreign trade in Abu Dhabi- imports - increased by 8% and amounted to $ 29.5 billion. In general, the indicators economic development Abu Dhabi is in line with a multi-year trend. So, for example, in the period 2005-2010, imports grew by 180%, while GDP, excluding the oil sector, grew by 90%.

Abu Dhabu is still the richest emirate, with the most advanced economies. As the largest oil producer, Abu Dhabi also acts as a major source of financing for other emirates. The strategy of diversification, reducing dependence on oil revenues, according to experts, will allow the emirate to continue to maintain the status of the main driver for the development of the UAE economy.

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Tourists who prefer to combine leisure with shopping will appreciate the possibilities of the emirate. There are 12 ultra-modern shopping centers and many small shops in the style of an oriental bazaar. In addition, shopping is a kind of leisure in Abu Dhabi: knowing how to bargain, you can get not only pleasure from the process, but also satisfaction from the purchase, significantly reducing the initial price of many goods.

Abu Dhabi annually hosts entertainment and educational events: festivals, exhibitions, fairs, competitions - entertainment for every taste, and everything, of course, at the highest level.
Abu Dhabi Grand Prix- the main auto racing of Abu Dhabi, taking place on the famous Yas Marina track. In the 2015 season, the final Grand Prix will be held on November 29, which is the latest completion date for the championship in history.
Sheikh Mansour bin Zayed al-Nahyan horse race- World Championship among Arabian horses. Traditionally held at the Abu Dhabi Equestrian Club in November.
Al Dhafra Camel Festival- a unique and spectacular event, which can only be visited here, is dedicated to the "ship of the desert". You can watch these exotic animals, witness a camel beauty contest, and admire the winner.
Gourme Delicacy Festival in Abu Dhabi- one of the main culinary festivals in the world, which is attended by both the best chefs and gourmets from all over the world. In February, Abu Dhabi turns into the gastronomic capital and a real paradise for those who take part in the tasting.
Water Sports Festival takes place in the fishing town of Mirfa in Al Gharbiya. The best athletes will gather here and demonstrate their skills in swimming, rowing, water skiing, and surfing competitions. And on the coast you can attend theatrical performances and concerts, participate in competitions and play beach volleyball.

Aldar Headquarters in Abu Dhabi can rightly be considered one of the "most unusual buildings on the planet." A skyscraper in the form of a glass disk placed on its edge occupies a worthy place in a number of structures that, for example, a hotel or, can be said to be “futuristic” or “fantastic”.

The innovative design has a basis: the circle symbolizes unity, rationality and stability. In addition, it is also a symbol of infinity and perfection, as conceived by the architects, a building of this form is a completeness that covers all space and time.

Building on Greek and Roman temples, which also had a round shape, as well as taking modern buildings with round shapes as an example, the developers of the project decided to create an extremely bold skyscraper in design - round, with curved glass walls covering the area of ​​​​four football fields.

The construction was completed in January 2010, the area of ​​the building was 123,000 square meters, and its cost to the owners was approximately $270 million. The height of the skyscraper is 124 meters, it has 23 floors and 3 more underground. In addition to offices, the Aldar headquarters also houses restaurants and hotel rooms.

Experts estimate the proven oil reserves of the UAE at 98 billion barrels, that is, approximately 1/10 of the world's reserves.

The Abu Dhabi National Oil Company (ADNOC), founded in 1971, occupies a leading position in the industry. Recently, special attention has been paid to the exploration of new fields, the development of newly found ones, and oil and gas marketing. Oil refining, distribution and marketing of oil products and liquefied gas are gradually receding into the background. ADNOC owns two oil refineries operating in the cities of Umm al Nar and Ruweis, a gas processing plant in the city of Habshan, a network of gas distribution stations on gas pipelines, and a chlorine plant in Umm al Nar.

The ADNOC group of companies operates in all sectors of the gas and oil industry, including production (drilling onshore and offshore), technical support works in the Gulf, transportation by tankers, distribution of oil and oil products, fertilizer production.

The ADNOC group of companies consists of three parent companies engaged mainly in oil (Abu Dhabi Company for Onshore Oil Operations - ADCO, Abu Dhabi Marine Operating Company - ADMA-OPCO, Zakum Development Company - ZADCO), five service companies specializing in providing services for oil and gas industry, three joint ventures for the full use of the gas received, two shipping companies for the transportation of crude oil and refined products, and a company for the distribution of finished products.

Abu Dhabi Company for Onshore Oil Operations (ADCO) is the largest oil producing company in the northern part of the Persian Gulf. In the field of its activity - search, drilling, production and export operations in the emirate of Abu Dhabi and in shallow waters.

Abu Dhabi Marine Operating Company (ADMA-OPCO) is engaged in the exploration, development and production of oil and gas offshore the emirate of Abu Dhabi and in the Umm Shaif and Zakoom fields. The entire volume of oil and gas produced is transported to Das Island, where the company's gas and oil storage facilities are located, for further processing, storage and export: a modern terminal is equipped on the island.

Zakum Development Company (ZADCO) was founded in 1977. Engaged in the development of the world's largest deposit Upper Zakum, deposits in Umm al-Dalh and Satah. Production is carried out jointly with ADNOC and Japan Oil Development Company (JODCO).

On June 6, 1966, the first large oil field was discovered in the emirate of Dubai in the town of Fateh, and two and a half months later, export deliveries began. Oil production in the Fateh, Rashid and Faleh zone is handled by the Dubai Petroleum Company (DPC). Production volume - 170,000 barrels per day (b / d).

Since 1982, APCO International Oil & Gas Company (ARCO) has been operating gas and gas condensate from the Magkham field. Daily production is about 6,000 barrels of condensate.

In Sharjah, oil and gas production is handled by BP Amoco Sharjah Oil Company. Daily production is 40,000-45,000 barrels of oil and 700 cubic feet of gas. The main deposits are Sadzha, Moveyeid, Kafaif and the Mubarak shelf.

Oil refineries

The first refinery with a capacity of 15,000 b/d was opened in 1976 on the island of Umm al Nar in the emirate of Abu Dhabi. The plant provided the needs of the local market. In 1983, the plant produced 75,000 b/d of naphtha, gasoline, kerosene, diesel fuel and fuel oil. In 1981, a large processing plant with a capacity of 120,000 b/d was opened in Ruwais, Abu Dhabi. By 1995, daily productivity had grown by 10%. The same oil products are produced as at the plant in Umm al Nar, and in addition - diesel fuel for ships and sulfur. Liquefied gas is produced for further processing by GASCO.

The plants in Umm al Nar and Ruwais process a tenth of the oil produced in Abu Dhabi and are the most profitable enterprises: they have no equal in the world in terms of such an indicator as the payback period of invested capital. In 1999, the Dubai government-owned ENOC opened a gas condensate plant in Jebel Ali with a daily capacity of 120,000 barrels of gasoline, naphtha, jet fuel and diesel fuel.
SOR Ltd, in cooperation with Fal Group, continues to build an oil refinery in the port of Hamria with a design capacity of 60,000 b/d.

In 1996, a 35,000 b/d oil refinery owned by the Greek company Metro Oil Corporation was opened in Fujairah. After some time, it was closed due to financial difficulties, but already in 2000, with the support of the government of the emirate, it resumed its work as the Fujairah Refinery Company, increasing its productivity to 60,000 b/d. The plant produces kerosene, gasoline, aviation fuel, motor oils. The company's shareholders are Van Ommeren, ENOC and the government of the emirate of Fujairah.

Recall that the port of Fujairah ranks third in the world (after Rotterdam and Singapore) in terms of exports of petroleum products. Only motor oils are exported from here from 600,000 to 800,000 tons monthly.

Thus, the UAE almost completely meets its needs in refined products. Currently, the countries of the Gulf Cooperation Council (GCC) process about 15% of the oil they produce. By 2007, this figure is planned to increase to 21% (EIB Journal, September 1997).

Liquefied gas production

In the recent past, associated gases were simply flared during oil production, but after the jump in oil prices in 1973, interest in gas increased dramatically. In 1974, the UAE produced about 500 million cubic feet of gas, 1.5% of which was used by oil companies, 1.5% was used in Abu Dhabi for electricity generation and seawater desalination, and 93% was simply burned. By 1980, more than half of the produced gas was exported or used locally, and already in 1983, the rate of rational use of associated petroleum gas in the Emirate of Abu Dhabi reached 92%!

Experts estimate world gas reserves at 150 trillion cubic meters. 4% of this value (6 trillion cubic meters) are located on the territory of the UAE: 92% - in the emirate of Abu Dhabi, 5% - in Sharjah and 2% - in Dubai. Currently, about 55% of the produced gas is used in the country, and the rest is exported in liquefied form. ADNOC has a number of impressive gas projects underway with Abu-Dhabi Gas Liquefaction Co (ADGAS) and Abu-Dhabi Gas Industries (GASCO) .

ADGAS has been implementing a gas liquefaction project since 1973. In 1977, the plant on Das Island began operation, producing 2.3 million tons of liquefied natural gas and 1.4 million tons of liquefied associated petroleum gas annually.

GASCO is one of the world's largest gas processing companies. It was founded in 1981 and since then has been processing natural and associated petroleum gas. From the fields in Ruwais and Abu Dhabi, it supplies gas for power plants and for the needs of the petrochemical industry. However, most of the gas is still exported.

Dubai Gas Company (DUGAS) was established in 1980 in Jebel Ali FEZ. Engaged in the processing of associated petroleum gas, butane and propane mainly for export, collection of gas condensate; methane and ethane are intended for power generation and water desalination, aluminum smelting.

SHALCO was founded in 1986 in Sharjah to produce, liquefy and export gas. Part of the gas is used to generate electricity and desalinate water in the city. In addition, about 95 million cubic feet of gas is sent daily to Dubai, to DUGAS.

In 1980, a plant for the production of mineral fertilizers (FERTIL) was built in Ruwais, which is a joint company between ADNOC and Total.

An important place in development plans oil industry The UAE holds the Dolphin Project, which provides for further deepening of ties with the gas infrastructure of Qatar and Oman, and in the near future - Pakistan. A project milestone statement was signed in March 1999 between Qatar General Petroleum Corporation and UAE Offsets Group (UOG). This will allow gas to be exported from the rich North Dome field in Qatar. The cost of the project is estimated at 8-10 billion dollars. Its implementation period is six to seven years. At the first stage, by the end of 2002, the gas pipeline laid on the bottom of the sea will pump 1,200 million cubic meters. feet of natural gas. In the future, it is planned to bring this figure up to 3,000 million cubic feet. The Dolphin project is the first program of this magnitude: in value terms, this is 10% of the world's gas supplies.

The Abu Dhabi - Dubai gas pipeline is under construction. After commissioning, Dubai will receive 800 million cubic feet of gas from the Al Bakhush field (Abu Dhabi) - through a desalination plant and a power plant in Jebel Ali. Over time, this branch will be connected to the Dolphin project.

Abu Dhabi is the capital of the UAE. In order to legally conduct business in Abu Dhabi, you must form a company and obtain a Commercial License, also called a Trade License. Registering a company in the UAE in Abu Dhabi is likely to be very different from registering a company in your home jurisdiction. Thus, it is vital to first research and understand the regulations, obligations, restrictions, etc. so that you can make an informed decision that is right for your business.

The first question you should ask is what type of business would be best for your planned activities. It would be wrong to assume that the fastest or cheapest option is the best - usually this is not the case. A full market research and feasibility study is recommended. The type of business, but more importantly where your customers are located, will likely determine whether your business should be inland or in a free zone.

Registration of a company in the UAE - inside the emirate or in a free zone?

First, you must decide whether you are opening a company inland or in a free zone. Abu Dhabi currently has five Free Zones (FZs):

• TWOFOUR54 is a free zone for media business.
• Kizad is an industrial free zone.
• Masdar City is a renewable energy and green technology free zone.
• Abu Dhabi Airports Company - Logistics Free Zone
• Abu Dhabi Global Market (ADGM) is a financial free zone.

Registration of a company in the UAE in NW Abu Dhabi

Free zones usually attract companies from certain business sectors. This is done so that they can supply goods and services to each other. This is important because, by law, NW companies must carry out their work within the geographic limits of NW, even though appointments may be made outside the NW.

Benefits of registering a company in the UAE in NW Abu Dhabi include:

• Possibility of 100% foreign ownership.
• 100% no corporate and income tax.
• 100% profit repatriation.
• No customs duties.
• Independent regulations.

Registration of a company in the UAE in the NW - restrictions

The activity must be carried out geographically in a free zone or outside the UAE.

To do business with local customers within the emirate, you need to work with an agent or distributor.

When exporting products to the local territory of the UAE, there is an obligation to pay customs duties.

Government tenders and contracts usually require a local license from the Department of Economic Development.

Registering a company in the UAE in a free zone is usually faster and cheaper than registering a company in the interior of the emirate. However, this is not always the case - sometimes it is cheaper to register a company in the UAE in the interior of the emirate, while the annual renewal fee may be significantly lower due to the free zone requirement for a specific size of commercial property (note that this is - example for a specific activity and does not hold in all cases).

Registration of a company in the UAE - local companies in Abu Dhabi

Organizational and legal forms when registering a company

In many cases, the activities you wish to participate in will determine the legal structure of the business, however, this is not always the case. There are three main types of local companies that are considered most frequently:

• Representative office.
• Foreign Branch.

Local sponsors and national Service Agents when registering a company in the UAE

When registering a company in the UAE in the interior of Abu Dhabi, there is a requirement for the participation of a local partner either as a National Service Agent (for a representative office or a foreign Branch) or as a Sponsor (for a company of the LLC form (LLC)).

Registration of a company in the UAE and National Service Agent

A Service Agent helps a foreign company to register a representative office or branch in Abu Dhabi. He will also be responsible for recruitment and immigration (obtaining visas). The Service Agent does not have any shareholding in the Abu Dhabi business, so he is usually remunerated in the form of an annual fee.

UAE Company Registration and Local Sponsor

Sponsor - a UAE citizen has a 51% share in the LLC form company (LLC). The type of income arrangement varies depending on the requirements for a local sponsor. An active sponsor finances a 51% shareholding and also takes a 51% share of the profits. Such sponsors will also be actively involved in decision making and business management. The nominee sponsor will not fund the 51% shareholding, but will act as a silent partner and retain the 51% shareholding in trust until such time as the foreign party decides to sell, transfer or liquidate the business. In this case, when registering a company in the UAE, an agreement is usually concluded in which the nominal transfers the administrative management of the business to a foreign party and allows the foreign party to receive its share of the profits. The nominee sponsor is rewarded with a fixed annual fee. In both scenarios, the sponsor takes responsibility for recruitment and immigration (for visas).

How to choose a local sponsor or Service Agent when registering a company in the UAE?

It is important to decide what you want from a sponsor before meeting potential candidates. Here are five important questions to consider:

• Do you want an active sponsor or nominee sponsor?
• If your sponsor promises that everything will be done and that all necessary contracts will be entered into, then how do you guarantee that all this will be done?
• Will your busy high profile sponsor be available to sign all documents upon request?
• What happens to 51% of your Abu Dhabi business if the sponsor dies?
• What is your exit strategy and is it really feasible?
• How much will a local sponsor cost when registering a company in the UAE in Abu Dhabi?

Please contact our specialists and we will find the right local sponsor for you.

Registration of a company in the UAE in free zones - what costs should be considered?

Costs vary depending on the free zone, structure, activities, real estate and number of visas. Typically, the following costs need to be considered:

• Registration fee (one-time fee).
• Name reservation fee (one-time fee).
• Annual license fee.
• Annual rental property.
• Visas for each person (lasts for 3 years).

Registration of a company in the UAE in the interior of Abu Dhabi - what costs should be considered?

Costs may vary depending on the structure, activities, real estate and number of visas. Typically, the following costs need to be considered:

• Government Fees and Third Party Fees (Trade License, Notary Fees, Legal Translations, Print Centers, Company Registration with a Government Office - One-Time Fees and Annual Fees).
• Fees for registration of a company in the UAE (submission of documents, documents of approval / verification - one-time fee).
• Sponsor fees (annual).
• Court fees (one-time fee).
• Commercial real estate (annual payment).
• Registration of a new company with the Immigration Office and the Ministry of Labor (renewal of the Establishment Card every two years).
• Visa per person (usually lasts for 2 years),

Note: If an individual registers a company in the UAE in the form of an LLC (LLC), they will also be required to demonstrate a share capital of AED 150,000 during the registration process. After obtaining a Trading License, this share capital can be converted into working capital.

Recurring costs when registering a company in the UAE

There are some annual costs.

Annual costs to maintain UAE company registration in Abu Dhabi Free Zone

• License fee.
• Rental Property.
• Corporate mailbox.

Annual Costs to Maintain a Representative Office or Foreign Branch Office in Abu Dhabi

• Trade License Fees.
• Registration at the Ministry of Economy.
• Annual audit by a registered local auditor.
• Rental Property.
• Corporate mailbox.

Annual costs to maintain company registration in the UAE in the form of LLC (LLC) in Abu Dhabi

• Trade License Fees.
• Registration in the Chamber of Commerce.
• Collection by Nadafa (recycling center).
• Rental Property.
• Corporate mailbox.

Activities of the Trade License when registering a company in the UAE

It is important to request the correct activity for your Trade License, as this will have different effects:

The selected type(s) of activity should reflect the type(s) of activity of the business.

The type of activity must be reflected in the trade name of the company.

This will also reflect the type of property required.

Additional approvals/registrations may also be required with certain government departments, for example, vocational training companies must be registered and approved with ACTVET, and construction and engineering companies must be registered through a process called "Classification".

Companies wishing to deal directly with local oil and gas companies must obtain approval from the Supreme Petroleum Council (SPC), which, when obtained, is shown as additional view activities under the Trade License.

Registration of a company in the UAE - commercial real estate in Abu Dhabi

Each company is required to have real estate that matches the activities on its trading license, for example a trading company will be required to have a store or warehouse, while management consulting is required to have office space. The space must be large enough to conduct the business of the company and to match the number of visas required. Property verification will be carried out during the company registration process in the UAE, so it will also need to be suitably equipped. It is not allowed to conduct business from home. Several types of businesses are allowed to operate in commercial villas, such as kindergartens and beauty salons, but most companies are not. In Abu Dhabi, commercial leases must be TAWTHEEQ leases, which means they are registered with the Abu Dhabi Municipality. However, there are exceptions, such as real estate in the industrial area of ​​Musaffah.

Registration of a company in the UAE - legal documents

Free zones usually provide legal templates for completing paperwork.

Legal Documents Required to Open a Representative Office or Overseas Branch Office in Abu Dhabi

The parent company and the signatory will be required to submit the following documents:

• Certificate of registration of the parent company.
• Council Resolution for the establishment of a Foreign Branch of the parent company in Abu Dhabi.
• Letter of Commitment from the parent company guaranteeing full financial commitment for the Abu Dhabi business.
• Power of Attorney (POA) to the General Manager granting signing authority.

• Certified by a public notary in the country of origin.

Additional required documents that do not require certification and legalization:

• Copy of the proposed General Manager's passport.
• Auditor Appointment Letter from the UAE Auditor.
• Identity documents of the National Service Agent.
• The agreement with the National Service Agent will need to be drafted, legally translated into double text and duly signed by a notary public.

Legal documents required to register a company in the UAE in the form of LLC (LLC) in Abu Dhabi

If a foreign company will have a 49% share of Abu Dhabi LLC, then the following documents will be required:

• Evidence of registration of the parent company.
• Memorandum of Association (MOA) / Articles of Association (AOA) of the parent company.
• Resolution of the Council for the registration of a company in the UAE of the form LLC (LLC) in Abu Dhabi.
• Power of Attorney General Manager.

All of the above documents must be:

• Certified by the Public Notary in the country of origin.
• Legalized by the Ministry of Foreign Affairs in the country of origin.
• Legalized by the UAE Embassy in the country of origin.

If individuals will have a 49% share of Abu Dhabi LLC, the following documents will be required:

Copies of passports of foreign individual partners and:

• A copy of the visitor's visa and the last date of entry into the UAE.
• The page of the canceled visa, if you previously had a visa to the UAE.
• Visa page, with accompanying Certificate of No Objection from the current employer.

In both cases, the Memorandum of Association of the Abu Dhabi LLC will need to be drafted, legally translated into double text and duly signed by a notary public.

We recommend that you contact our specialists to either design, or at least study the documents of your company. We are familiar with local laws and regulations, as well as with certain terms and words that are accepted by the public notary.

Time frame for registering a company in the UAE in Abu Dhabi

When the legal documents are ready, the process of registering a company in the UAE in the form of LLC (LLC) can take approximately two to three weeks (if no special approvals are required), and registration of a Foreign Branch or Representative Office will take a little longer - approximately three weeks to obtain Trading License and then another period of 30 days in which you can apply bank guarantee and complete the UAE company registration process at the Ministry of Economy.

Have you ever registered a company in the UAE? What, in your opinion, should be paid attention to when registering a company? We are waiting for your comments!

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