Useful Information - The United Arab Emirates
Investor Information -• Business in the UAE - an insight |
The United Arab Emirates -• Abu Dhabi |
A lot of interesting facts and figures have been compiled in a single, easy-to-use book, entitled Investor’s Guide to the UAE. Key data regarding the UAE economy has been compiled providing the reader information about The United Arab Emirates, its prevailing Business Infrastructure, and business options here as well as in the region.
Business in the UAE- an Insight
The UAE business environment is lucrative and predictable if one takes care to understand the environment and influences working on an individual market on an on-going basis. Before making any final investment decisions experience dictates that it is good practice to seek advice from local legal advisors.
Business people on a visit may avail an array of commercial intelligence information sources, including embassy lists, the chambers of commerce, official gazettes and tender lists. UAE national businessmen are the best source of information, and it’s imperative for those seeking business development to develop excellent contacts in the local business community. With high-level contacts, it is possible to hear of projects, ahead of others, long before tender documents are officially purchased. Though the UAE is one of the most open and freely competitive markets in the world with authorities keen to do business on the basis of quality and value for money, much still depends on this inside knowledge. Individual personalities play a pivotal role in the award of contracts. The knowledge, accessibility and reputation of one’s local associate are key factors that determine the outcome of fierce bidding between international companies.
The nature of business in the UAE varies according to the distinct character of each emirate. The commercial aspirations of Dubai emirate mean that in most quarters there is a definite will to conduct business at a Western-style pace, although this does not mean that traditional courtesies are waived. Business visitors will find that in Abu Dhabi, the commercial pressures are not high, the pace is more measured and the business environment slants more toward traditional practices. Sharjah, with its rapidly growing industrial sector, follows the Dubai mode to a great extent, but the smaller emirates are less attuned to Western business methods.
The application of uniform federal standards and regulations, which started in the 1980s, increased in speed during the 1990s. It should be noted, although federal laws apply to the UAE in general, procedures and requirements may differ from emirate to emirate. Local legal advisors are readily available to counsel potential foreign investors.
Laws Governing Business
In the UAE, both the federal government and the individual emirates regulate business activity. In practice, the detail of business registration is the responsibility of each emirate, while the laws that govern that activity derive from the federal authorities.
Since 1993, there have been a number of legal reforms aimed at creating a framework able to accommodate the country’s commercial aspirations. Most notable is the commercial code that came into effect at the end of 1993 and covers a wide range of banking and commercial activities. Also significant are new laws on copyright, patents and trademarks that came into effect in 1993.
Commercial Transactions Law
The Commercial Transactions Law (federal banking law number 18 of 1993) covers the commercial transactions on a scale unprecedented in prior legislation. It contains provisions determining who may lawfully conduct business in the UAE, subject to certain exemptions for GCC nationals or companies operating in free zones. None other than UAE nationals may conduct business unless in partnership with UAE nationals in line with the requirements of the commercial companies law which stipulates a minimum 51 percent local ownership.
The commercial code has introduced a new legal basis for mortgages over a wide range of assets, both tangible and intangible, and contains detailed provisions concerning bankruptcy and receivership. Banking transactions including current accounts, bank loans and guarantees, the discounting of commercial paper, trust receipts, deposits of securities and detailed rules on cheques, bills of exchange and promissory notes are covered. Moreover, the commercial code permits lenders to receive interest on commercial loans subject to certain limitations, a clarification welcomed by banks.
Companies Law
Federal law number 8 of 1984 came into effect in its amended form in January 1989 and has been applicable to the formation of every company since that date. The law requires at least 51 percent ownership by UAE nationals and to take one of the seven forms specified by the law (see below).
Companies formed prior to 1989 had the benefit of a number of grace periods allowing them time to comply with the provisions of the law. The last grace period expired at the beginning of 1994 and has not been renewed. The companies law is now unequivocally applied to all local companies irrespective of when they were formed. Foreign investors who are unsure of how the companies law now affects their interests should seek advice from their local legal advisors.
National ownership
Under the companies law, at least 51 percent ownership by UAE nationals is required for all UAE establishments, except where the law requires 100 percent local ownership as in the case of, for example, commercial agencies. The companies law is not applicable to free zone establishments, branches and professional companies.
Company Categories
The law sets out the requirements for shareholders, directors, minimum capital levels and incorporation procedures. Mergers, conversions of licenses and the dissolution of companies are also covered. The seven categories of business organisation permitted are:
- General partnership
(Limited to UAE nationals) - Simple limited partnership
- Joint participation venture
- Public joint stock company
Companies engaging in banking, insurance and financial activities should be run as joint stock companies. But foreign banks, insurance and finance companies can set up branches or representative offices. The chairman and the majority of board directors must be UAE nationals and there is less flexibility regarding profit distribution than with a limited liability company. - Private joint stock company
- Limited liability company
(The profit and loss distribution is negotiable. A limited liability company may have between two and 50 members and the liability of shareholders is limited to their shares in the company’s capital) - Share commandite company
The Dubai government does not presently encourage the establishment of simple partnership and share commandite companies. Otherwise, all entities formed under the companies law must be at least 51 percent owned by UAE nationals.
Professional companies law
Professional companies are companies where the main asset is the partners’ knowledge (for example, lawyers, engineers, accountants, hairdressers) and are not covered by the commercial companies law. In these cases. UAE nationals must own at least 25 percent of professional companies.
Free Zones have a special legal status and companies established there are considered offshore, or outside the UAE for legal purposes. Benefits include amongst others: 100 percent foreign ownership, no corporate taxes for 15 years renewable for an additional 15 years, 100 percent repatriation of capital and profits, no personal income tax, no currency restrictions, no recruitment or administration problems, abundant energy, excellent facilities at Dubai Ports Authority’s two modern terminals, no import or export duties payable within the zone, first class communications and an attractive working environment.
Establishing a business in one of the Free Zones is rather straightforward. Depending on the respective Free Zone, investors have one of two options. They may (a) incorporate a new company in the form of either a Free Zone Establishment (FZE), a Free Zone Company (FZCO), or a Free Zone Limited Liability Company (FZ-LLC) (b) establish a branch of their existing or parent company, whether incorporated in the UAE or abroad. FZEs (single shareholder companies), FZCOs (multiple shareholder companies) or FZ-LLCs (single or multiple shareholder companies) are governed by the respective Free Zone rules and regulations and not by the general corporate law of Dubai. All are limited liability entities with a separate legal identity from that of its owners whose liability is thus limited to the extend of the company’s paid up share capital. Share capital requirements differ per Free Zone.
Once a company has been accepted into the free zone, it will generally operate under one or more of the four different licenses available. The licenses are issued by the respective Free Zone Authority (FZA) and last as long as a company holds a FZA lease, but are renewable annually.
Free Zones
Types of Licenses
- Trading License: Trading Licenses are issued to companies within or outside the Free Zone who wish to import, export, sell, distribute and store items permitted under the license. If the company should wish to make sales within the UAE, however, it must engage a distributor or agent in the UAE. Companies operating under a trading license are exempt from obtaining a license from the DDED.
- Service License: Companies intending to provide a service within the Free Zone require a service license. The license is issued on condition that the service to be practiced must be the same as that stipulated in the parent company’s license in the UAE or abroad. However, service licenses are rarely issued by FZA.
- National Industrial License: Manufacturing companies registered within or outside the UAE must hold a National Industrial License. At least 51 percent of the shares must be UAE or GCC-owned. At least 25 percent UAE ownership is required for a certificate of origin issued by the Ministry of Finance & Industry, as well as the requirement for the UAE value-added input to be at least 40 percent of the total value of the relevant products. The holder of a National Industrial Production Certificate who manufactures goods that are eligible for a UAE certificate of origin therefore qualifies for customs duty exemption if its products are exported to other parts of the UAE or to other GCC countries.
- Industrial License: An Industrial License is required to import raw materials, manufacture certain products, and export finished products. If the company intends to sell products within the UAE, an agent or distributor in the UAE is required.
Registering a Free Zone Establishment
Applications for obtaining license, if no significant reputational, security or environmental issues are involved, should in practice take no longer than 30 days of submission of the application. Though the Free Zones are keen to do business on the basis of equality and make a concerted effort to inform potential investors adequately, experience has learned that the speed of the process still much depends on inside knowledge. Individual personalities play a pivotal role in ensuring submitted applications meet all requirements and hence the timely processing of applications. The knowledge, accessibility and reputation of one’s contacts within the authorities could prove a key factor in ensuring a quick turn-around-time. Thus make sure to give enough time and genuine attention to those offices processing your application.
Patents and Copyrights
Patents -
Regulations governing the registration of patents, trademarks, industrial designs and models are covered by federal law.
Regulations governing the registration of patents, trademarks, industrial designs and models are covered by federal law.
Copyright and censorship: Governed by the federal law, this includes procedures for obtaining permission for the printing, publication, display, sale and registration of works in the UAE.
These regulations have been enforced since September 1994 and pirated computer software and video cassettes are no longer easily available in the UAE.
Tenders -
In the UAE, government projects and purchases are usually put out to tender. Eligibility to participate varies according to the size and type of the project and the authority concerned.
In the UAE, government projects and purchases are usually put out to tender. Eligibility to participate varies according to the size and type of the project and the authority concerned.
Where a tender is offered only in the UAE, companies must be licensed and registered with the department concerned in order to be eligible to bid. To qualify, a participant must be:
- A firm wholly owned by UAE nationals, or a partnership where UAE nationals hold at least51 percent of the equity. A foreign party may only tender if it has an eligible UAE representative or agent.
- The tenderer must hold a valid license from the Economic Department in Dubai or its equivalent in Abu Dhabi.
- The tenderer must be a member of the appropriate Chamber of Commerce & Industry.
Customs Law
Importers must hold an appropriate Trade License. In 1994, the Federal Government introduced a uniform 4 percent customs duty across the seven emirates covering a wide range of imported goods.
Industries Exempted
- Medicines, agricultural machinery, pesticides, fertilisers, periodicals, wood, unstrung pearls, un-worked silver and gold, iron and steel for use in construction, raw or partially worked materials for use by local manufacturers and 70 foodstuff items listed are exempt from customs tariffs. Goods produced within the GCC are also exempt. Goods destined for the Free Zones are also duty-free.
- For a product to qualify as a national product and receive GCC customs exemption:
- At least 40 percent of the product’s final value added must be made locally
- The factory must have a license from the Ministry of Finance & Industry
- There must be 100 percent or minimum 51 percent UAE national or GCC ownership of the producing plant
A special appeals desk has been established at the Federal Customs Directorate to hear claims from importers for goods to be classified as duty free.
More Information
Guidelines on setting up business in Dubai, procedures on licensing industrial projects in Dubai and its Free Zones as well as information on departments in-charge are readily available from the Dubai Chamber of Commerce & Industry.
UAE
Abu Dhabi
Abu Dhabi, the largest of the seven emirates of the UAE, (occupying about 85 percent of the country’s entire area) owns the most substantial reserves of oil. Bordered by Oman and Dubai, Saudi Arabia and Qatar, it is the leading emirate of the federation, a position ensured by two main factors: the personality of the former ruler, Sheikh Zayed Bin Sultan Al-Nahyan, who was instrumental in establishing the federation; and the emirate’s massive oil revenue and financial reserves. Sheikh Zayed was ruler of Abu Dhabi before the federation was declared in 1971, and Abu Dhabi’s pre-eminent position ensured that his fellow rulers in the UAE’s Supreme Council named him President at its inception. His commitment to the aims of the federation, and his sense of duty as a Muslim and an Arab, have been central to the growth of the UAE’s standing in the region. Sheikh Zayed was ruler of the United Arab Emirates until he passed away on November 2, 2004 and his son Sheikh Khalifa Bin Zayed Al Nahyan was elected new President of the United Arab Emirates.
Oil was first produced in Abu Dhabi in the early 1960s and the emirate is now one of the Arab world’s largest producers, comparable to Kuwait and Saudi Arabia, with a similar ability to cut production. At the present rate of extraction, Abu Dhabi’s reserves are estimated to last for another 200 years. Despite this, the government seeks to diversify the economy to avoid total dependence on oil revenues. Government and private sector investment in agriculture, industry, fishing, water and electricity supply, construction, retailing and tourism has been intensified. Exports have risen dramatically since 1990.
The wealth generated by Abu Dhabi has been concentrated in three principal areas. Firstly, the emirate has developed its own infrastructure and services, making it one of the best-served regions of the Gulf. Secondly, Abu Dhabi has been the dynamic force behind the success of the federal government of the UAE, which relies for its income on contributions from the seven emirates. These are defined by the constitution as a proportion of oil revenue; but Abu Dhabi’s generous and consistent commitment has allowed the poorer emirates in the north to flourish, using their federal allocations. The third direction of spending has been in foreign aid, mainly targeting poor Third World and Muslim countries.
History
Abu Dhabi was founded in 1761 when the leader of the Bani Yas Bedouin tribe relocated his people to the island of Abu Dhabi (literally meaning “Father of the Gazelle”). With the discovery of fresh water, the Al-Bu Flasah branch of the Bani Yas decided to settle on the island, leaving behind a wali (representative) to supervise affairs in Liwa. In 1793, Sheikh Issa bin Nahyan and his successor, Sheikh Dhiyab bin Issa constructed a fort around the well, the precursor to Al-Husn Palace which today stands on the same site. In 1833, the Al-Bu Flasah tribe, headed by the Al-Maktoum family, separated from the Bani Yas tribe to become independent in Dubai. Meanwhile, the town of Abu Dhabi developed steadily during the 19th century due to the pearling industry, and though Abu Dhabi was never a major trading centre like Bahrain, the revenue introduced by trade was substantial. The summer season was preferred over winter for pearling and boats would set out in early May or June to return in late September. By the end of the 19th century, Abu Dhabi had over 400 boats, constituting the largest fleet in the Trucial States.
From 1855-1909, under the ruler, Sheikh Zayed bin Mohammad, (known as Zayed the Great), Abu Dhabi became the most powerful of the Trucial Coast Sheikhdoms and its territory grew to cover much of what is Abu Dhabi emirate today.
Abu Dhabi City
The discovery of oil transformed Abu Dhabi. In the 1950s, the emirate was an empty desert inhabited by nomadic Bedouin tribes and the capital city was a collection of barasti huts built around the Ruler’s fort to the north of Abu Dhabi Island. By the 1960s, the city was being laid out on a grid system, which still determines the pattern of the capital today. Then the roads were tracks in open sand. Now, consequent to an ambitious road construction programme implemented during the 1970s and 1980s, they are busy city centre streets crowded with high-rise apartment and office blocks.
Two bridges link the island to the mainland: the northern Maqta bridge (the traditional crossing point) and the main route to the international airport 40 kilometres from the city; and the southern Mussafah bridge, leading to the industrial area of Mussafah, just off the island on the mainland. The Corniche stretches from the newly reclaimed Ras al-Akhdar headland-Green Point in the west to the Sheraton hotel in the east, continuing as Mina (port) Road to connect with Mina Zayed, Abu Dhabi’s port.
The more obvious charm of Abu Dhabi city is the prevalence of greenery. All the road verges and open spaces are well planted and watered, and there are many parks, including a wood, and several miles of natural mangrove swamp. The city has numerous parks, including the Khalidiya public garden and the Al-Mushrif Park, despite the fact that Arabia is subject to some of the world’s most demanding climatic conditions. Annual rainfall rarely exceeds 180 millimetres a year in the UAE. The salt impregnated soil resists cultivation, and during the summer, humidity levels are high, and temperatures can reach more than 45 degrees centigrade.
Ajman
Ajman is the smallest of the seven emirates (covering 259 square kilometres), occupying a stretch of coast between Sharjah and Umm al-Qaiwain. It also has two inland enclaves: one at Masfut, 100 kilometres southeast of Ajman town at the foot of the Hajar Mountains on the Oman border, and at Manama, 60 kilometres southeast of Ajman town, which is famous for its dates. Recent archaeological discoveries reveal that Ajman was once an important Bronze Age settlement, though now it is a relatively quiet backwater.
Ajman’s main tribe is the Naim who also inhabit the Al-Ain oasis in Abu Dhabi. Some 150 kilometres of desert separate Ajman from Al-Ain, but the tribal link has traditionally connected the emirate with the shifting relationships of tribal politics in eastern Arabia. The current ruler is Sheikh Humaid bin Rashid Al-Nuaimi, who succeeded his father on the latter’s death in 1981. Traditionally, fishing was the main industry, and to some extent it still is. As elsewhere in the Gulf, the emirate’s pearling industry was badly affected in the 1930s by competition from Japanese cultured pearls. However, Ajman has never ceased developing its two other principal industries, fishing and dhow building. (The dhow-building yard is situated on the north side of Ajman Khor, a few kilometres from the centre). One of the coastline’s attractions is the sight of dhows, half-built dhows, and the great wire mesh domed fish-traps scattered along the sands ready to be set on the seabed.
The port is located along a natural creek (khor), which penetrates the town. It has one of the world’s largest ship repair companies, maintaining oil field supply boats, and five-and-a-half kilometres of wharf. A port authority has been funded, and docking fees cut, to encourage use. The town has benefited substantially from its proximity to the larger centres of Sharjah and Dubai, with population figures rising noticeably in recent years as many people working in Dubai and Sharjah choose to live in Ajman. Increasingly, Ajman has become integrated into the Sharjah conurbation, and the border between the two is barely discernible. The town of Ajman itself, the capital of the emirate, comprises the Ruler’s office, companies, banks and commercial markets. In 1961, the first UAE public radio station was founded here, and today Ajman’s television channel, Channel 4, and popular radio station are well established.
Dubai
Dubai is a small emirate covering 3,900 square kilometres. The present ruler is Sheikh Mohammed bin Rashid Al Maktoum. He is also Vice President and Prime Minister of the federation. He succeeded his brother in January 2006. Sheikh Hamdan bin Rashid is the Deputy Ruler, and Federal Finance and Industry Minister.
History
The history of Dubai dates back to the early 19th century, when some 800 members of the Bani Yas tribe, the Al-Bu Flasah, moved north from present-day Abu Dhabi to settle here. Lacking the fertile hinterland of Abu Dhabi, with its oases of Liwa and Al-Ain, Dubai’s inhabitants focused on the coast, with pearling and trade their central occupations. By the 1940s, and through the 1950s, Dubai was a small trading port clustered around the mouth of the Creek and by the end of the twentieth century, its prosperity had attracted settlers from Iran, India and Baluchistan. The facilities for trade and free enterprise made Dubai a natural haven for merchants who had left Lingah on the Iranian coast after the introduction of high customs dues in 1902, and Deira souk was reputed to be the largest on the coast, with some 350 shops. The merchants were mainly of distant Arab origin and followers of Sunni Islam, (unlike most Persians), and naturally looked across to the Arab shore of the Gulf, finally making their home in Dubai. They continued to trade with Lingah, however, naming their district Bastakia after the Bastak region in Southern Persia.
Meanwhile, a flourishing Indian population was settling in Dubai, and was particularly active in the shops and alleys of the souk. The cosmopolitan atmosphere and Dubai’s tolerance of immigrants began to attract other foreigners too. By the 1930s, nearly a quarter of the 20,000 population was foreign, including 2,000 Iranians, 1,000 Baluchis, many Indians and substantial communities from Bahrain, Kuwait and the Hasa province of eastern Saudi Arabia. International trade stimulated the city’s development even before the beginning of oil production in the 1960s, and although Dubai was severely affected by the decline of the pearling industry, (due to competition from Japan and the drop in trade during World War II), it endured this period of adversity, trading with Persia and India after the 1945 war. Some years later, the British made Dubai their centre on the coast, establishing a political agency in 1954. Today, low custom duties and efficient ports and airports have ensured that Dubai remains a crucial trading post. The international airport has become one of the region’s busiest, with flights to over 150 destinations, while Port Rashid and Jebel Ali are crucial trading centres.
Gradually, the focus of the city is shifting from the traditional business centre located around the Creek to the Sheikh Zayed Road and the new developments, business and residential communities such as the Dubai Media City, Dubai Internet City and Dubai Marina situated on the coast toward Jebel Ali.
The development of free zones, exempt from taxation and offering various further advantages to foreign companies, attract considerable investment in Dubai’s economy. The annual shopping festival (DSF) lures consumers from the Middle East, Europe and beyond with the promise of bargains, entertainment and extravagant raffle prizes. The Dubai World Cup, Dubai Desert Classic and Tennis Open, have placed the emirate on the international sporting map, while the creation of the Dubai Internet and Media cities is likely to guarantee Dubai’s pre-eminence as the media centre of the Middle East.
Dubai City
Dubai’s Creek splits the city into two areas, Bur Dubai and Deira. There are various ways to get from one side to the other: the Shindaghah tunnel runs under the water emerging close to the Hyatt Hotel; the Al Maktoum, Al Garhoud and recently opened Business Bay bridges cross over the water, and small motorised boats known as abras ferry foot passengers from Bur Dubai to Deira throughout the day and early evening for the reasonable sum of 2 Dirhams.
Active commerce is still carried out along the wharfs on the Creek, as dhows load up with televisions, microwaves and other electronic goods that will be transported throughout the Gulf and to India and East Africa. The Creek is also the locus of Dubai’s historical quarters, Bastakia and Shindaghah.
The traditional centre of the city is moving gradually away from the Creek, however, to the modern skyscrapers of the Sheikh Zayed Road, and beyond to the new business communities out toward Jebel Ali. To the north of the town, the residential district of Hamriyah extends along the coast towards the popular beach park of Al Mamzar in the direction of Sharjah, while to the south, the garden suburb of Jumairah stretches for miles along the coast.
Fujairah
The history of Fujairah dates back to the reign of Sheikh Mohammad bin Matar, head of the tribe of Al-Sharqiyeen, who is credited with uniting the tribes in the area. The Al-Sharqi family has ruled Fujairah, named after a small stream in the emirate for over a century. It gained recognition as an emirate in 1952, (having been part of Sharjah until that time), becoming a member of the federation at the latter’s inception in 1971.
The emirate is the only one of the seven located on the Gulf of Oman, where the mountains fall dramatically into the Indian Ocean: the capital lies on this scenic coast. Due to the mountains, the climate here is generally more temperate than elsewhere in the UAE and the emirate experiences fewer storms. At 1,450 square kilometres it is the fifth among the emirates in terms of size, and some 80 percent of the population (of a total of approximately 150,000) live on the coastal belt, with the other 20 percent scattered in the oasis and mountainous valleys.
Fujairah’s location ensures the success of its port, which opened in 1983 and is the third largest for container handling in the UAE, and its associated free zone, which was openedin 1987. Fishing has always been important in this area, and special harbours have been built at Dibba, Dhadnah and Mirbah. Fujairah port hosts the world’s largest livestock shipping companies, which have set up their main holding stationfor sheep and cattle for the entire Arabian Peninsula here.
The oil refinery began production in 1996 and is another important factor in Fujairah’s success. Industries that have developed in the emirate include the Fujairah Cement Factory, the Fujairah Rockwool Factory and the Emirates Ceramic Factory. Apart from industry, Fujairah’s fertile soil encourages the production of vegetables and animal husbandry, and there are several large poultry farms and a dairy farm. The Fujairah National Dairy Farm near Dibba has a herd of 500 Friesian and Holstein cattle, which produce enough milk to meet the needs of the emirate. The Arab Company for Poultry Production, covering an area of over 600 hectares, was established in 1981 and started production in 1985. It has a productive capacity of four million meat chickens and approximately 12 million eggs per annum.
The long term planning for Fujairah rests on the development of its various indigenous resources and the upgrading of the economic sectors, such as the agriculture and manufacturing industries, trade, services and tourism. Tourism is becoming more established in the area under the auspices of the Fujairah Tourism Bureau. Major sporting events attracting visitors and competitors from around the world are held regularly, and the emirate, increasingly popular with visitors from the other emirates of the UAE and foreign tourists, contains many interesting places to visit.
Ras Al Khaimah
Ras Al Khaimah translates literally as ‘head of the tent’, northernmost emirate that covers 1,700 square kilometres, and once was the centre of the states of the southern Gulf. The most recent estimates give the total population of the emirate as 200,000 of which 60 percent are locals. The plains in Jiri stretch from Idn in the south to Shamm in the north and contain the largest area of arable land in the UAE, with the main farming area located in the region around Digdaga, the site of a pioneering agricultural research centre set up in 1955. Not far from where Ras Al Khaimah is now, Julfar was a city of trade that was of great importance far beyond the Gulf area. Between the 14th and the 17th century Julfar was a well known location in the world of that time. Large amounts of imported Chinese porcelain as well as other pottery found in Ras Al Khaimah’s archaeological sites show the wide-range trade involved. The home of merchants and seafarers, it seems, that the most famous of all Arabic seafarer, Bin Majid, came from Julfar. Besides a presence of the British and Portuguese, the Dutch had an outpost as well in what is now known as Ras Al Khaimah.
The poultry farms of Ras Al Khaimah Poultry and Feeding Company at Digdaga are able to produce over a quarter of a million eggs every week. A dairy farm comprising approximately 600 Friesian cattle has contributed to the emirate’s position as one of the UAE’s main agricultural centres. Milk, meat, chicken, eggs, fruits and vegetables are all part of the current agricultural production, while the Ministry of Agriculture also maintains a research centre devoted to dates: more than 45 varieties of palm trees are grown here.
The Julphar pharmaceutical factory, the largest in the Arabian Gulf, is also located in the Digdaga district on the road towards the Ras Al Khaimah International Airport, in Al Hamraniah. First opened in 1979, the airport comprises a main terminal building, a duty-free shop, a first class VIP lounge, and two restaurants. Some kilometres north of the capital city, the mountains near Shimal once yielded the raw materials for a substantial pottery industry, and local stone, used in the building of houses, is quarried to produce a variety of materials, from aggregates to ceramic tiles. Today, minerals continue to be an important source of earnings and Khor Khwair (situated approximately 25 kilometres to the north of Ras Al Khaimah city) is the focal point of this industry. Cement is the main product and is exported throughout the Gulf. In addition to its major cement, gravel and marble enterprises, Khor Khwair is also the location for Port Saqr, the main export port for the emirate, and the traditional fishing district of Rams. Fishing continues to be a major activity, and Port Saqr is one of the most active Gulf seaports equipped with the latest facilities. It serves more than 1,400 vessels per year and consists of three quay walls running 1,800 metres with docking facilities for nine merchant vessels and approximately 18 smaller ships.
In the 1980s, Ras Al Khaimah discovered oil at the offshore Saleh field. Although the supply is small, it is a useful source of revenue.
Ras Al Khaimah Town
The Khor (creek) divides the town into two sections: it can be crossed by abra (ferry boat) or bridge. In the western section, known as Old Ras Al Khaimah, are the Ras Al Khaimah National Museum and a number of government departments. The eastern, and older, part of the town, known as Al-Nakheel, houses the Ruler’s office, several government departments and commercial companies.
Sharjah
Sharjah (Al-Shariqa) is the third largest emirate in the UAE, after Dubai and Abu Dhabi, with a population of some 678,000. The emirate covers 2,600 square kilometres and comprises the capital city, its surrounds, and three enclaves on the Gulf of Oman coast – Khor Fakkan, Dibba Hisn and Kalba – as well as two islands in the Gulf – Abu Musa and Sir Abu Nuair. The Dhaid region is important for agriculture, with more than 100,000 tonnes of fruit and vegetables grown annually.
Perceiving culture to be a useful commodity, the emirate has become home to most of the UAE’s museums. Of all the emirates, Sharjah is the most concerned to preserve its cultural heritage and natural history. On the east coast in particular, at Dibba, Khor Fakkan and Kalba are beautiful beaches, wadis and the UAE’s largest mangrove swamp (designated a natural history conservation area), teeming with birds and other wildlife.
History
After the British destroyed the Qawasim fleet in 1819, a series of treaties were signed which eventually brought peace to the Trucial States. Sharjah was chosen as the headquarters of the resident political agent, and later, the base for the British-sponsored Trucial Oman Scouts. During World War II, an airstrip was built for the Royal Air Force of the UK.
In the 1960s, Sharjah saw substantial modernisation, although it was only with the discovery of oil near the island of Abu Musa in 1972 that major construction projects were undertaken. Oil production began in 1974, and gas condensate was discovered a few years later. In 1980, the Amoco Corporation discovered onshore reserves around Sajaa and began production in 1982. Today, there are 15 wells in the field producing liquefied petroleum gas (LPG), which is pumped to storage in Hamrivah and to offshore tankers by an undersea pipeline. The ‘dry gases’ are used to generate electricity for Sharjah and the Northern Emirates. Under the ruler’s patronage, two universities were founded in 1997: Sharjah University, and the American University of Sharjah. In 1998, two new technological colleges were established, one each for men and women.
The emirate is also a centre for manufacturing: approximately 30 percent of the federation’s smaller private manufacturing establishments are based here, many in the SAIF Zone, (the free trade zone located near the international airport), and the Hamriyah Free Zone. The port of Khor Fakkan on the east coast also plays an important role in the emirate’s trade.
The cost of accommodation in Sharjah is considerably cheaper than in Dubai, especially as a recent building boom has seen the construction of numerous apartment blocks. Many expatriates choose to live in either Sharjah or neighbouring Ajman and commute to Dubai. Visitors should be aware that a decency law relating to styles of dress and public behaviour was passed in 2001. Those judged to be in contravention of the law face fines.
Umm Al Quwain
Umm Al Quwain is the second smallest emirate and the least populous. It covers an area of 77 square kilometres and is located half way between Dubai and Ras Al Khaimah.
The name of the emirate means “mother of the powers”, a reference to its long seafaring history. Traditionally known for fishing, and agriculture in the fertile oasis of Falaj al Mualla, today there is still an active dhowbuilding yard in Umm Al Quwain. Fishing continues to be the main activity, while the many offshore islands and the lagoon of Khor al-Baidha (White Creek) offer excellent sailing.
Falaj al-Mualla was once an important centre for date cultivation. Today, it is the inland site of one of the UAE’s biggest poultry farms, supplying eggs and chickens to markets in Sharjah, Dubai and Abu Dhabi. The camel racetrack is also located here, and races are held on Wednesdays, Thursdays and Fridays in the winter from seven in the morning.
In 1976, small quantities of oil and large reserves of gas were discovered offshore, east of the Mubarak field, but these have not brought any profit to the emirate. Rather, as elsewhere in the UAE, the emirate seeks to develop its tourist industry. While federal aid has provided Umm Al Quwain with good roads, street lighting, a broadcasting station and various other municipal services, the emirate is unusual in being a living example of what life was like in the UAE’s recent past. The pace of life is still slow and high-rise buildings are the exception, not the rule. Its charm is due to its isolation, as the main road linking Ras Al Khaimah to Ajman and Sharjah passes the town further inland.
Umm Al Quwain Town
The town lies on a narrow peninsula of sand and is easy to negotiate: the signpost from the main Sharjah-Ras Al Khaimah road leads directly to the headland across a series of roundabouts. After the Musalla roundabout, modern development becomes more concentrated, with villas and several apartment blocks and shops. In the old town itself, which covers a small area around the intersection of Al-Hasan Road and Al-Lubna Road, there is a souk, various public buildings, old houses and the old palace. Activity is at its peak at dawn as the fish catches are landed, but for most of the day the town is comparatively quiet.
Falaj Al Mualla
The oasis of Falaj Al Mualla is located 53 kilometres inland and is connected to Umm Al Quwain by a good road passing through red sand dunes and trees. It is a pleasant town with housing, a post office, a petrol station and an important egg and poultry farm.
