PANNELL KERR FORSTER

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TIE DUBAI
PRESENTATION BY
PANNELL KERR FORSTER
February 2004
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Introduction
Outline of presentation
Growth of UAE
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UAE A Success Story

• Under the leadership of Sheikh Zayed, the
  development of the country since independence has
  been peaceful, proactive and well administered.

• Impressive all round performance

• UAE GDP touched US 71 billion in 2002 up by
  2.5 over previous year.
• Oil sector contributed 33.6 in 2002 as against
  35.5 in 2001.
• Non oil sector contributed 66.4 in 2002 against
  70.5 in 2001.
• Investments into the economy 24 of the GDP
  increase of 2.6 over 2001.
• Exports climbed US 49.5 billion in 2002 against
  US 48.7 b in 2001.
• Oil exports represented 34.1 and re-exports
  accounted for 29.4 of total exports.

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UAE A Success Story (contd)

• Late Sheikh Rashid and growth of Dubai.
• Leading commercial and business hub of the Middle
  East.
• Dubais expansion plan accelerated creation of
  network of free zones Jebel Ali, DIC, DMC, KV,
  DIFC, DMMC and so on.
• Massive government led real estate and the
  tourism sector expansion Dubailand, Marina,
  Palm, Lakes, Burj Dubai, etc.
• Dubai as a leisure and business destination
  continues to grow unabated. Passenger movement up
  by 13 and cargo grew by 23 in 2003.

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Setting up Business
Licensing
Legal Forms
Challenges
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Licensing
Within Free Zones
Outside Free Zones
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Within Free Zones
TYPE

• ACTIVITIES
• Manufacturing
• Trading
• Services

SELECTION OF THE ZONE
REGULATIONS
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Major Advantages

• 100 foreign ownership of the enterprise.
• 100 import and export tax exemptions.
• 100 repatriation of capital and profits.
• No corporate taxes for 50 years, renewable for an
  additional 50 years.
• No personal income taxes.
• Assistance with labour recruitment, and
  additional support services, such as sponsorship
  and housing.

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Various Free Zones in Dubai
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Various Free Zones in Dubai (contd)
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Various Free Zones in Dubai (contd)
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Various Free Zones in Dubai (contd)
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Other UAE Free Zones

• SHARJAH SAIF HAMRIYA FREE ZONES
• AJMAN
• UMM AL QUWAIN
• RAS AL KHAIMAH
• FUJAIRAH

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Licensing outside Free Zones
TYPE

• ACTIVITIES
• Manufacturing
• Trading
• Services

• AUTHORITY
• Economic Development Deptt.
• Ministry of Finance Industry
• Ministry of Economics
• Commerce
• UAE Central Bank

REGULATIONS
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Legal forms
Branch
LLC
FZE/FZ LLC
FZCO/FZCO LLC
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Challenges

• Licensing Regulations
• Business Laws
• Business Plans
• Capital Requirement
• Taxation Treaty Benefits
• Market Information
• IP Rights
• Local Sponsor
• Valuation
• Real Estate Development

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UAE Tax Treaties
The Govt. of UAE has signed Agreements for the
Avoidance of Double Taxation and The Prevention
of Fiscal Evasion with respect to Taxes on Income
with several countries including

• The Govt. of the Rep. of Syria2000
• The Govt. of Canada1998
• The Govt. of Turkmenistan1988
• The Govt. of Lebanon1998
• The Federal Rep. of Germany1995
• The Kingdom of Belgium1996
• The Govt. of The Rep.of Finland1996
• The Govt. of The Rep. of Singapore1995
• The Govt. of The Rep. of Italy1995

• The Govt.of The Rep.of Egypt1994
• The Govt. of The Peoples Rep. of China1993
• The Islamic Rep. of Pakistan1993
• The Govt. of The Rep. of Poland1993
• The Govt. of The Rep. of Turkey1993
• The Govt. of Romania1993
• The Govt. of The Rep. Of India1992
• The Govt. of The Czech Republic
• The Govt. of The Republic of France 1989

Some more treaties have been signed.
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PKF UAE

• Pannell Kerr Forster (PKF) UAE is part of PKF
  International, a worldwide association of
  accountants and business advisors providing
  high-quality value-added services by focusing on
  client-specific needs and issues.
• PKF International is ranked in the top 10 on a
  worldwide basis and is often in the top 5 in a
  particular country or for a particular service
  line. Worldwide revenue now reaches US1 billion,
  and the firm operates out of nearly 500 offices
  in over 100 countries with nearly 14,000 partners
  and staff.
• PKF UAE was founded in Dubai in 1976 and is now
  also represented in Abu Dhabi, Jebel Ali,
  Sharjah, Dubai Internet City and Hamriya Free
  Zone.
• We have over 60 staff specialising in their
  particular service line, whose qualifications
  include CA, CPA, CISA, CIA, MBA, etc.

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PKF UAE (contd)

• AUDIT AND MANAGEMENT
• ASSURANCE
• External audit
• Internal audit
• Due diligence
• Forensic and other investigations
• Back office support services MIS
• Training and consulting on IAS

• MANAGEMENT CONSULTING
• Business process re-engineering
• Enterprise resources planning
• Business profit improvement
• Preparation for ISO
• IT systems study implementation
• Organisation and systems reviews
• Human resources consulting

Providing Solutions to Business Issues

• ENTRY STRATEGY
• Free zone company formation
• Offshore services
• Joint ventures strategic alliances
• Taxation
• Feasibility studies

• CORPORATE FINANCE
• Mergers and acquisitions
• Disposal strategy
• Capital and corporate structures
• Fund raising
• Valuations of businesses shares

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Thank you
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