The Treasurer’s Guide to Trade Finance

United Arab Emirates

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 360 bn Goods Exports 232

GDP per capita (USD) 45,653 Imports 166

GDP volume growth (year-on-year) + 5.0% Net + 66

Population 7.89m Services Exports 9

Interest rate NA Imports 43

Exchange rate AED / USD (year average) 3.6725 Net – 34

BoP (goods, services & income) as % of GDP

(2010) + 11.4% Source: IFS, IMF, January 2013 and Central Bank of UAE

International/regional memberships

Gulf Cooperation Council (GCC):

since 25 May 1981.

The Organization of Oil Exporting Countries

(OPEC): since 1967.

International Monetary Fund (IMF):

since 22 September 1972.

World Trade Organization (WTO):

since 10 April 1996.

Government trade policy

ƒ Much of the UAE’s trade policy is directed

through its membership of the GCC

(www.gccsg.org/eng/index.php).

ƒ As a GCC member, the UAE is able to trade

with other GCC member states (Bahrain,

Kuwait, Oman, Qatar and Saudi Arabia)

without investment and service trade barriers.

ƒ Through the GCC common market, launched

in 2008, UAE businesses and citizens receive

national treatment in all GCC countries.

ƒ The GCC also operates a customs union

in which members are subject to unified

customs duties.

ƒ GCC member states have signed bilateral

trade agreements with several countries, and

negotiations are ongoing with the European

Union and the Association of Southeast

Asian Nations (ASEAN). In 2009 the GCC

signed a free trade agreement with the

European Free Trade Association (EFTA).

ƒ National export credit insurance provider:

Export Credit Insurance Company of the

Emirates (www.ecie.ae).

ƒ The UAE maintains 36 free trade zones.

ƒ Abu Dhabi Industrial City and the Al Ain

Industrial City operate as special economic

zones within the UAE.

Currency and exchange controls

Official currency: Dirham (AED).

Exchange rate arrangement: pegged to the

USD at a rate of AED 3.6725 per USD 1.

The UAE does not impose foreign exchange

controls.

ƒ The United Arab Emirates Central Bank

(UAECB — http://www.centralbank.ae) maintains

a forward foreign exchange swap facility, via

swaps with terms of one week and one, two,

three, six, nine, and twelve months.

Bank accounts

ƒ Resident companies can hold local currency

(AED) bank accounts.

ƒ Resident companies can hold foreign

currency bank accounts within and outside

the UAE.

ƒ Non-resident companies can hold local

currency accounts and foreign currency bank

accounts in within and outside the UAE.