There are many options open to international companies seeking to establish a business relationship with Dubai. Apart from forming a trading relationship, many companies find that there are distinct advantages in having an on-the-spot presence in order to research market prospects, make contacts, liaise with customers, and see through the details of any transactions and orders secured.

Direct trade International manufacturers and exporters may conduct business with Dubai by concluding transactions directly with importers and traders who are already established in the market. This type of arms-length arrangement may be suitable for low-volume trade.

However, for an ongoing business relationship, overseas companies may well want to consider a more permanent form of representation.

Commercial agencies

A foreign company wishing to supply goods and services from abroad, but without establishing a physical presence in Dubai, may find it advantageous to appoint a commercial agent. The main provision of the Federal Commercial Agency Law No 18 of 1981, as amended by Law No 14 of 1988, is that an agent must be a UAE national, or a company 100 per cent owned by UAE nationals.

A commercial agent may not carry out activities in the UAE unless its name is entered in the Commercial Agency Registry maintained at the Ministry of Economy and Commerce. The procedures and conditions for such an appointment are as follows:

A commercial-agency agreement should be drawn up specifying the products and territories to be covered by the contract
The agreement should be signed by both parties (principal and agent) and, if signed in Dubai, legalised before a Court Notary Public.
The agreement should then be translated into Arabic by a sworn translator licensed to operate within the UAE.
The services of sworn translators are readily available in Dubai. If the agency agreement is signed outside the UAE:

Further regulations

Imports into Dubai can be undertaken only by importers who have the appropriate trade licence. Import duties have been largely standardised at four per cent, but there are many exemptions, including food, building materials, medical products and any item destined for the Jebel Ali and Airport free zones.

Food products must carry dates of manufacture and expiry and meat for the local market must have a certificate to prove compliance with Islamic law.

Trade practices in Dubai are in line with normal international standards.
All correspondence should be in Arabic or English.

As a sophisticated market, full technical specifications should be provided with CIF Dubai prices and Middle East references.

Payments are normally effected by letter of credit. The UAE is a member of the World Trade Organisation.