Export to United Arab Emirates: where to start?
The United Arab Emirates' economy is thriving and opportunities to do business in the country are many:
- the UAE’s currency, the dirham, which is pegged to the US dollar, is secure and freely convertible;
- here are no restrictions on profit transfer or capital repatriation;
- import duties are low (less than 4 per cent for virtually all goods and zero for items imported for use in free zones);
- labor costs are competitive;
- federal corporate tax and personal taxes are nil and numerous double taxation agreements and bilateral investment treaties are in place. In addition, the financial risk is minimal.
These factors, combined with a strategic, accessible location for major regional markets, an excellent reliable infrastructure and an extremely pleasant, stable and safe working environment are key elements in attracting foreign investment.
The UAE is a contracting party to the General Agreement on Tariffs and Trade (GATT) since 1994 and a member of the World Trade Organization (WTO) since 1996. It is also a member of the Greater Arab Free-Trade Area (GAFTA) in which all Gulf Cooperation Council (GCC) states participate
How to find the right supplier and how to ensure that you get what you want, without any problems? Follow these guidelines for success.
Buying something and sourcing is something different
Buying something is mostly easy, if you know the supplier already. Sourcing is the process of finding the right supplier, who can either be a manufacturer, importer or distributor. And sourcing is all about getting the right pricing and delivery conditions.
Have a good procurement strategy in place
Procurement is the overall process of sourcing and buying (or purchasing). You should have a process in place, to optimise the balance between the effort in finding the right sources and negotiating a lower price, and the pricing itself. Typically for larger purchases, it makes sense to do a broad search and, especially where it comes to searches abroad, to hire somebody to do the sourcing for you.
Select the right manufacturers and double check
Before you start ordering complex products or large quantities, make sure that you check your source. If you don't go there yourself, then send somebody trusted, preferably who understands the local language and knows the local situation.
Check the export and import procedures
Import duties can limit the financial advantage of sourcing abroad. And customs formalities can further increase shipping times. Therefore check in advance whether the country that you are planning to source from and the applicable duties.
Alliance experts can help you find the right supplies abroad
Alliance experts is a global network of business development specialists. We are active in all important economies around the globe and meet many manufacturers and trading companies. With our international team we can relatively easy look for suppliers abroad who can provide you with a unique product features or a lower cost price.