About United Arab Emirates

Dubai is one of seven Emirates in what constitues together, the United Arab Emirates (UAE) on the Arabic peninsula. UAE is bordering Saudi Arabia, Qatar and Oman.

Abu Dhabi is the Capital of the Emirates. Dubai is the second largest in area and population, but is the UAE's most important commercial entrepot. To many, Dubai and the UAE is just another Arabic country, somewhere in the Middle East, with strong Muslim influence and with business potentials of less importance. Far too many Swedish companies and individuals do not realise just how dynamic the economy and business climate are in this region.

Economic liberalisation, a young population with strong purchase power, diversified economy, wealth in terms of extensive oil and gas resources are all factors that make UAE and the Gulf region an attractive market for Swedish companies.

Despite the tense political situation in the surrounding region, both i terms of armed interventions in Iraq and activities from extremists in Saudi Arabia last year, Dubai and the UAE differs remarkebly from what is generally broadcasted from the Gulf. Here business goes on as usual and the the economy of expansion is moving along with an astonishing pace. The general perseption of an unsafe business climate and huge risks are defenatly not true in this part of the Gulf.

UAE's economy has experienced a rapid economic development since the discovery of various hydrocarbon resouces (oil and gas) in the late 50s and 60s.

Although oil and gas production is still the prime source of public revenue, for certain Emirates, the secret of the current economic success has been a determined government strategy of economic diversification, leading to the creation of new productive sectors. A deliberatly low level of business and market regulations has been adopted in order to encourage overseas investments in the non-oil commercial sector. This, combined with revenues from foreign investments has meant that UAE economy has been relativey immune to the effect of plummeting oil prices.

The biggest Emirate, Abu Dhabi is said to earn as much from its investments over seas as it does from the sale of oil. Dubai, on the other hand, earns the majority of its substantial revenues from trading and tourism. To-day the gross domestic product (GDP) from the oil sector in Dubai is only approximately 7 % of its total 97.98 billion AED (approximately 360 billion USD)(June 2005). Real GDP has grown at an annual compound rate of 8% a year for the past 10 years. Its strive to diversify its economy will help to grow even in the absence of oil income, which is expected to happen in less than a decade.

The relative wealth, coupled with an open and tolerant cosmopolitan life style makes it a magnet for business people from all of the world. Especially Dubai has a much less strict muslim approach than any other Gulf country. Commerce, growth and profit are key words in this meltpot of nationalities and of both smaller and bigger family owned companies, as well as the majority of the big blue ship multinationals.

In Dubai and the UAE, Sweden is well represented with more than 200 companies with sales- or representative offices or local UAE companies, representing Swedish products and services.

Sweden and Swedish products have a good reputation in this part of the world. For domestic Swedish companies however, this region sometimes is caracterised as a "black hole" and few Swedish companies in Sweden really have good knowledge of the potential of the UAE and the region as a market.

Those Swedish companies who are present, has experienced a very positive growth, and where other markets is slowing down or even decreasing, UAE and the Middle East is providing all time high figures for the many of the Swedish companies here, thanks to the domestic UAE market but also the great demand in the surrounding regions such as Iran, Saudi Arabia and North Africa.

Dubai has successfully promoted itself to be a hub for business and economic crossroads of a region with a potential of over 2.7 billion people, taking into account its closeness to the rest of the Gulf region and the Far East, which many Swedish companies in the region have realised.

UAE hosts 15 different economic free Zones with 100% foreign ownership and with another 15 new to be operational soon. More than 80% of those are located in Dubai.

Dubai has also a world class international airport with large flight capacity and superior customs, immigration and VIP reception facilities.

The hotel standard is outstanding and the UAE is offering a world class information technology hub, with e-government well implemented. In general, the infrastructure is sophisticated and very well developed.

For Swedish business people travelling in the region, Dubai offers very good facilities in terms of transport, health, education, convention centres and general industry infrastructure.