News from Dubai

The Dubai Maritime City

Drawing on its maritime heritage, the Dubai Maritime City will provide integrated world-class infrastructure and services to key marine and maritime related industries from around the globe. The City will be the world's largest maritime development, on a man made peninsula measuring 25 million square feet and will be located between Dubai's Port Rashid terminal and Dubai dockyards. It will be connected to the mainland by a causeway.

The Maritime City will be the hub for maritime businesses from primarily six sectors that include maritime services, management, product marketing, research & education, recreation, and ship design and manufacturing.

Abu Dhabi Is World # 1 in Per Capita GDP

Abu Dhabi topped the world in per capita GDP last year at Dh 169,500/- (US$ 46,060/-). With worldwide increase in oil prices in 2005, the emirate's economic position saw a substantial boom. The development of different economic factors also contributed to the rise. The year 2005 saw Abu Dhabi 's GDP grow 11 % compared to 6.5 % in the previous year to hit Dh 302 billion. The private sector contributed an astounding 17.6 % to the GDP. The number of local and regional companies listed on the Abu Dhabi Securities Market reached 59 compared to 35 in 2004.

The future too looks bright for the emirate. It is predicted that the volume of investment in all sectors will be more than Dh 500 billion over the next five years. It is also expected that several joint stock companies would be floated in the course of this year.

With the Abu Dhabi economy poised to attract more than $4 billion this year in direct foreign investment, it is anticipated that the economy will grow by 6.1 % this year.

Gold & Jewelry

Dubai Gold & Commodities Exchange Commences Live Trading

After one year of whirlwind activities and high powered decisions, the Dubai Gold & Commodities Exchange (DGCX) went live on 21 st November 2005. DGCX is the first commodities and derivatives exchange in the entire middle-east and offers an uninterrupted trading window of 13 hours for traders/investors from across the world.

Increased Foreign Ownership of Companies in UAE

The draft proposal for higher proportion of foreign ownership of companies in UAE from present level of 49% is under consideration and review by the seven emirates. It is stated that the new Commercial Companies law in UAE is in the final stages of being approved and is expected to come into force by June 2006. Expectations are that it may permit the foreign ownership of the companies in excess of 70%.

Dubai Industrial City

Dubai Industrial City , the proposed zone for Industrial activities in Dubai has already signed over 50 companies. These companies would buy land in the Dubai Industrial City (DIC) which is under construction in Jebel Ali. DIC will be spread over 55 square km and is being built alongside the new Arabian Canal extending from the Dubai waterfront. Companies will begin constructing their plants within a few months and the City's first phase will be completed by the second quarter of 2007. Expected to be fully operational within next three years, the DIC is expected to attract large investment and will contribute over US$ 500 million of income to Dubai 's GDP. However DIC is not a free zone since present GCC trade & customs rules provides for duty exemption only to industrial units where in the ownership of GCC national is 51% or more and also sales within UAE from free zones attract custom duty @ 5%. However the much awaited amendment in the Commercial Companies Law permitting increased foreign ownership's in Limited Liability Companies would further boost investments in this zone.