ECONOMIC DEVELOPMENT - UAE Interact

98 UNITED ARAB EMIRATES YEARBOOK 2006government is in the process of revising local commercial and investment legislationto ensure that it complies with the requirements of the World Trade Organisation.Chambers of Commerce such as the Abu Dhabi Chamber of Commerce andIndustry (ADCCI) provide a host of other services to business people in the UAE,including libraries, information centres, business centres, legal services divisions,commercial conciliation and arbitration centres, business women’s councils andtraining institutes. The ADCCI has played a vital role in business growth in the UAE.Membership is on a steady climb with the total at the end of June 2005 reaching49,253, of which 32,994 were in the commercial category; 14,214 professional;1713 vocational and 332 involved with industry.But business growth is no longer focused exclusively on developments withinthe country. Whilst the Emirates have for many years invested a substantial portionof their wealth in international stock markets they have recently taken a moreproactive stance, investing not just their money, but also their management skillsand experience gained in one of the world’s fastest growing economies, to extendactivities of UAE-based companies beyond the shores of Arabia. In December2004 Dubai Port Authority purchased CSX Corp.’s Hong Kong internationalcontainer terminal business for US$1.15 billion. In June 2005 Etisalat, bought a26 per cent management stake in Pakistan Telecommunication Co. (PTC.KA).In July 2005 Jumeirah, a hotel unit of the Dubai government which operates eighthotels, including two in London and Dubai’s iconic Burj Al Arab, announced plansto spend Dh90 million to launch its new brand name that will target the luxuryhotel market presently served by companies such as Four Seasons Hotels Inc. (FS)and Singapore-listed Mandarin Oriental International (M04.SG). Jumeirah was alsoawarded the prestigious contract for management of the new Dubai Towers – Doha.The contract forms part of Jumeirah’s expansion strategy. Similar expansion hasoccurred in the oil industry with strategic purchases of exploration rights, operatingoil and gas companies, refineries and distribution networks.FREE ZONESFollowing on from the development and steady expansion of the UAE’s first freetradezone at Jebel Ali, and the success of other specialised zones that provideattractive facilities for both national and international investors, it has been clearlyestablished that the free-zone formula is an effective magnet for inward investment,bringing jobs, expertise and a significant boost to the national economy. The basicrecipe (100 per cent foreign ownership, corporate tax holidays, no personal taxes,freedom to repatriate capital and profits, no import duties or currency restrictions)differs only slightly among the various zones whose comparative advantages arebased more upon individual locations, facilities, areas of specialisation and, last butnot least, establishment and operating costs.