United Arab Emirates: Economy Profile

Doing Business 2020 United Arab Emirates
Economy Profile
United Arab Emirates
Page 1
Economy Profile of United Arab Emirates

Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
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About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
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Ease of Doing Business in DB RANK DB SCORE

Region Middle East & North Africa
United Arab Emirates

Income Category High income
16
Population 9,630,959 80.9
City Covered Dubai
Rankings on Doing Business topics - United Arab Emirates
3 1
10 13 9
17
30
48
80
92
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
94.8 89.8 100.0 90.1 70.0 80.0 85.3 74.1 75.9 49.3
Starting a Business (rank) 17 Getting Credit (rank) 48 Trading across Borders (rank) 92
Score of starting a business (0-100) 94.8 Score of getting credit (0-100) 70.0 Score of trading across borders (0-100) 74.1
Procedures (number) 2.5 Strength of legal rights index (0-12) 6 Time to export
Time (days) 4 Depth of credit information index (0-8) 8 Documentary compliance (hours) 5
Cost (number) 17.2 Credit registry coverage (% of adults) 12.0 Border compliance (hours) 27
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 51.3 Cost to export
Documentary compliance (USD) 140
Dealing with Construction Permits (rank) 3 Protecting Minority Investors (rank) 13 Border compliance (USD) 462
Score of dealing with construction permits (0-100) 89.8 Score of protecting minority investors (0-100) 80.0 Time to export
Procedures (number) 11 Extent of disclosure index (0-10) 10.0 Documentary compliance (hours) 12
Time (days) 47.5 Extent of director liability index (0-10) 10.0 Border compliance (hours) 54
Cost (% of warehouse value) 2.2 Ease of shareholder suits index (0-10) 4.0 Cost to export
Building quality control index (0-15) 15.0 Extent of shareholder rights index (0-6) 4.0 Documentary compliance (USD) 283
Extent of ownership and control index (0-7) 7.0 Border compliance (USD) 553
Getting Electricity (rank) 1 Extent of corporate transparency index (0-7) 5.0
Score of getting electricity (0-100) 100 Enforcing Contracts (rank) 9
Procedures (number) 2 Paying Taxes (rank) 30 Score of enforcing contracts (0-100) 75.9
Time (days) 7 Score of paying taxes (0-100) 85.3 Time (days) 445
Cost (% of income per capita) 0.0 Payments (number per year) 5 Cost (% of claim value) 21.0
Reliability of supply and transparency of tariff index (0-8) 8 Time (hours per year) 116 Quality of judicial processes index (0-18) 14.0
Total tax and contribution rate (% of profit) 15.9
Registering Property (rank) 10 Postfiling index (0-100) 55.0 Resolving Insolvency (rank) 80
Score of registering property (0-100) 90.1 Score of resolving insolvency (0-100) 49.3
Procedures (number) 2 Recovery rate (cents on the dollar) 27.7
Time (days) 1.5 Time (years) 3.2
Cost (% of property value) 0.2 Cost (% of estate) 20.0
Quality of the land administration index (0-30) 21.0 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 11.0
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Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days) polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them
received
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate.
capita) -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice The owners:
Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
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Starting a Business - United Arab Emirates
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement No minimum
City Covered Dubai
Indicator United Arab Middle East & OECD high Best Regulatory
Emirates North Africa income Performance
Procedure – Men (number) 2 6.5 4.9 1 (2 Economies)
Time – Men (days) 3.5 19.7 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 17.2 16.7 3.0 0.0 (2 Economies)
Procedure – Women (number) 3 7.1 4.9 1 (2 Economies)
Time – Women (days) 4.5 20.3 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 17.2 16.7 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 8.9 7.6 0.0 (120 Economies)
Figure – Starting a Business in United Arab Emirates – Score
91.2 96.5 91.4 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
94.8: United Arab Emirates (Rank: 17)
93.1: Saudi Arabia (Rank: 38)
89.6: Bahrain (Rank: 67)
88.4: Kuwait (Rank: 82)
84.5: Jordan (Rank: 120)
84.0: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
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Figure – Starting a Business in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)

4.5 18
4 16
Cost (% of income per capita)

3.5 14
3 12
Time (days)
2.5 10
2 8
1.5 6
1 4
0.5 2
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
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Details – Starting a Business in United Arab Emirates – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 APPLIES TO WOMEN ONLY: Obtain husband's approval to leave the marriage home 1 day No charge
Agency : Home
As per Personal Status law, art. 71 and 72 the wife must seek her husband's consent to leave the
marital home. A wife may lose her maintenance if she refuses to move to the marital home, or
leaves the home, or prevents her husband from entering the marital home, or refuses to travel
with her husband, all without legitimate excuses (Art. 71). The law also requires a wife to be
obedient to her husband, maintain the house and its belongings, and breastfeed infant children
unless there is an impediment. A woman may be considered disobedient, with few exceptions, if
she decides to engage in activities without her husband’s consent.
2 Reserve a company name, notarize MoA and Apply for registration at the Department of Less than one day see procedure details
Economic Development (DED) (online procedure)
Agency : Department of Economic Development
To obtain a general trading license and register an LLC, the entrepreneur must complete an online
application using the Instant License service. This application is launched through the e-services
website of the Dubai Department of Economic Development. Upon completion of the online
application, the entrepreneur automatically receives an establishment card reference number from
the Ministry of Human Resources and Emiratisation. The entrepreneur is also automatically
registered for membership at the Dubai Chamber of Commerce and Industry.
The entrepreneur must carry out the following steps in the Instant License application:
1) Select legal form
2) Select business activities
3) Add the partners according to the legal form, and identify the following points:
- Partners' share in the Capital
- Distribution of profits and losses between the partners
4) Reserve a new trade name through the following ways:
- Reserve a new trade name
- Use an automatically generated trade name which consists of the trade name reservation
number
5) Add the value of the Capital in the commercial register data of the Company, and the rest of the
fields will be filled automatically
6) An option will be shown to issue an electronic memorandum of association within the available
electronic service, and the customer may choose this option or just skip it.
7) A payment voucher shall be issued
8) Pay the fees
Through the Instant License service, entrepreneurs have the option to sign an electronic
memorandum of association in the same application. They can also skip this step, in which case
they must provide a notarized MoA when it is time to renew their license after the first year.
Entrepreneurs do not need to have a company lease or location during the first year. However,
when it is time to renew the license a year later, they need to submit a document proving they
have a location and a lease contract.
The following fees must be paid as part of the Instant License application:
1) Department of Economic Development fees: AED 600 (commercial license fee) + AED 100
(preliminary approval fee) + AED 600 (trade name reservation fee) + AED 2,000 (foreign name
containing numbers fee) + AED 15,000 (general trading license issuing fee) + AED 30
(government cultural fee) + AED 30 (Innovation Dirham fee) + AED 50 (administrative services
fee) + AED 350 (trade name advertisement fee)
2) Dubai Municipality fees: AED 3,000 (market fee) + AED 1,000 (public waste-related services
fees) + AED 80 (service improvement fees)
3) Dubai Chamber of Commerce fees: AED 1,200
4) Ministry of Economy fees: AED 3,000
5) Local trade license fees: AED 100
6) Commercial License - Tejari fees: AED 200
Total fees: AED 34,340
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3 Register native workers with the Ministry of Human Resources and Emiratization and with 3 days no charge
the General Authority for Pension and Social Security
Agency : Ministry of Human Resources and Emiratization
According to Ministerial decree No 1215/2005, native workers must be registered with the Ministry
of Human Resources and Emiratization and with the General Authority for Pension and Social
Security
The following documents are required for submission during this registration:
- 3 copies of the employment contract
- A copy of employer's passport
- A copy of the trading license
- A proof that the worker is a UAE citizen
Applies to women only.

Takes place simultaneously with previous procedure.
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Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
The warehouse:
that can be fully completed online are an exception to this rule
- Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2) The water and sewerage connections:

• Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
• Quality control after construction (0-3)
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
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Dealing with Construction Permits - United Arab Emirates
Standardized Warehouse
Estimated value of warehouse AED 7,934,638.80
City Covered Dubai
Procedures (number) 11 15.7 12.7 None in 2018/19
Time (days) 47.5 123.6 152.3 None in 2018/19
Cost (% of warehouse value) 2.2 4.4 1.5 None in 2018/19
Building quality control index (0-15) 15.0 12.5 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in United Arab Emirates – Score
76.0 93.8 89.2 100.0
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 11
Figure – Dealing with Construction Permits in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)

2.5
45
40
Cost (% of warehouse value)

2
35
30
Time (days)
1.5
25
20
1
15
10 0.5
0 0
1 2 3 4 5 6 7 8 *9 10 * 11
Procedures (number)
Page 12
Figure – Dealing with Construction Permits in United Arab Emirates and comparator economies – Measure of Quality
16 15.0
14.0
14 12.0 12.0 12.5
Index score
12 11.0
10
8
6
4
2
0
United Bahrain Jordan Kuwait Saudi Middle

Arab Arabia East
Emirates &
North
Africa
Details – Dealing with Construction Permits in United Arab Emirates – Procedure, Time and Cost
1 Hire a Consultant to supervise construction and undertake all the necessary pre-approvals 1 day AED 158,693
Agency : Private Firm
BuildCo would hire an engineering consultant to undertake all required pre-approvals for the
permitting process and supervise the construction
2 Obtain soil test results 0.5 days no charge

Agency : Dubai Municipality
The consultant must verify soil test results on the following website:
http://login.dm.gov.ae/wps/wcm/connect/0f8cb91f-710b-48e4-9523-
15892858e90c/Soil+Baring+Capacity+-+Industrial+plots.pdf?MOD=AJPERES
3 Request and obtain all No Objection Certificates (NOCs), Civil Defense approval and 25 days AED 6,151
building permit online from the Building Department of Dubai Municipality
Agency : Building Department of Dubai Municipality
As of 2012, all No Objection Certificates (NOCs) can be applied for online through the Dubai
Municipality portal at the same time as the building permit. NOCs are required from the following
departments and are valid for 2 years:
• Dubai Electricity and Water Authority (DEWA) on electrical wiring installation drawings
• Dubai Electricity and Water Authority (DEWA) on water connection
• Drainage and Irrigation Department of Dubai Municipality on drainage and sewage
• Etisalat on phone connection
BuildCo also submits the final drawings online at the Building Department of the Dubai
Municipality for approval.
As of May 2014, Dubai Municipality granted direct access for the Dubai Civil Defense Authority to
the Building Permit Control System to review and grant approval for applicants. Therefore, it
became possible to request and obtain the civil defense approval jointly with the request for the
NOCs and building permit.
4 Receive special risks inspections (footings/foundation) during construction 1 day no charge

For the case-study warehouse measured by Doing Business, Dubai Municipality performs 2 risk-
based inspections at the stages of a) footings and b) frame erection.
5 Receive special risks inspections (frame erection) during construction 1 day no charge
6 Receive inspection of the structure 1 day no charge

BuildCo requests and receives an inspection from Dubai Municipality, who will verify that the
structure was completed according to building standards.
7 Receive unscheduled patrol inspection during construction 1 day no charge

Patrol inspections are conducted without the prior knowledge or request of the customer. They are
done to check/control the environmental effect of the project on its surroundings.
8 Request and receive final joint inspection from Dubai Municipality and Dubai Civil Defense 3 days AED 100
and Obtain the completion certificate
Dubai Municipality introduced a final joint inspection with the Civil Defense. This joint inspection
takes place within 3 days of requesting it.
9 Obtain inspection and approval from DEWA for final water supply 1 day no charge
Agency : Dubai Electricity and Water Authority (DEWA)
10 Obtain final water connection from DEWA 14 days AED 2,250

Page 13
11 Build septic tank 3 days AED 4,000

Agency : Drainage and Irrigation Department
Page 14
Details – Dealing with Construction Permits in United Arab Emirates – Measure of Quality
Answer Score
Building quality control index (0-15) 15.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge; In official
gazette.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 2.0
house engineer;
Inspections by
external engineer or
firm; Inspections at
various phases; Risk-
based inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency;
Yes, in-house
engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company; Owner or
investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance ;
Construction
company; Insurance
is commonly taken in
practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0
or drawings are in compliance with existing building regulations? (0-2) years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer; Passing a
certification exam.
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What are the qualification requirements for the professional who supervises the construction on the ground? (0- Minimum number of 2.0
2) years of experience;
University degree in
engineering,
construction or
construction
management; Being
a registered architect
or engineer; Passing
a certification exam.
Page 16
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:

• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded The monthly consumption:

The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1) (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case

study
*Note: Doing Business measures the price of electricity, but it is

not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 17
Getting Electricity - United Arab Emirates
Standardized Connection
Name of utility Dubai Electricity And Water Authority (DEWA)
Price of electricity (US cents per kWh) 10.9
City Covered Dubai
Procedures (number) 2 4.4 4.4 3 (28 Economies)
Time (days) 7 63.5 74.8 18 (3 Economies)
Cost (% of income per capita) 0.0 419.6 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 8 4.4 7.4 8 (26 Economies)
Figure – Getting Electricity in United Arab Emirates – Score
100.0 100.0 100.0 100.0
Reliability of supply and transparency of

Procedures Time Cost
tariff index
Figure – Getting Electricity in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
100: United Arab Emirates (Rank: 1)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)

7 1.2
6
Cost (% of income per capita)
5
0.8
Time (days)
4
0.6
3
0.4
2
0.2
1
0 0
1 2
Procedures (number)
Page 18
Figure – Getting Electricity in United Arab Emirates and comparator economies – Measure of Quality
9 8
8
Index score
7 6 6 6 6
6
5 4.4
4
3
2
1
0

Arab Arabia East
Emirates &
North
Africa
Page 19
Details – Getting Electricity in United Arab Emirates – Procedure, Time and Cost
1 Submit application to Dubai Electricity and Water Authority (DEWA) 2 calendar days AED 0
Customers are required to have their internal installation executed through an electrical
contracting company with a license issued by the Department of Economic Development.
The contractor is granted access to apply for an electrical connection through the utility's online
portal as authorized by the trade licenses for electrical works. The system allows customers'
contractors to submit their application on the online portal. The contractor also schedules the
internal wiring inspection as the application is submitted.
In addition, when the application is submitted, the excavation permit is granted internally due to
DEWA’s earlier agreement with Roads and Transport Authority.
The licensed contractor needs to submit the following documents online with the application
through the portal:
1) Affection plan
2) Copy of Building Permit
3) Site layout plan of the project
4) Technical drawings and details
The online application portal can be accessed using the following link:
https://www.dewa.gov.ae/en/consultants-and-contractors/services/connection-services/al-namoos
2 Receive inspection, external connection works and meter installation 5 calendar days AED 0
DEWA proceeds to complete the external connection works, and install the meter to energize the
warehouse. The external works can commence without payment (or any additional authorization
or signature), as the utility has waived electrical connection fees for all connections up to 150 kVA
since February 2018. Moreover, the external connections works and meter installation is
combined with the internal wiring check as the meter box is installed outside the premises of the
customer’s property.
The only interaction between the utility and the customer’s contractor is the internal wiring check -
which the utility does in parallel with the external works and meter installation. Staff from DEWA
will check the internal wiring of the building without the need of any separate application or
request (all the needed paperwork is lodged on the initial application. The check is needed to
ensure the installation complies with the approved drawings as scheduled by the contractor(s).
The check is completed with the presence of the customers' contractor(s) on the premises. The
inspection approval is processed internally without further customer interaction.
If the full electrical installation complies with the regulations and approved drawings, the external
works will take place right after the inspection and electricity can be turned-on within 5 days.
Page 20
Details – Getting Electricity in United Arab Emirates – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.3
System average interruption frequency index (SAIFI) 0.2
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.dewa.gov.ae/

en/customer/services/con
sumption-
services/calculator
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22
Registering Property - United Arab Emirates
Procedures (number) 2 5.4 4.7 1 (5 Economies)
Time (days) 1.5 26.6 23.6 1 (2 Economies)
Cost (% of property value) 0.2 5.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 21.0 14.6 23.2 None in 2018/19
Figure – Registering Property in United Arab Emirates – Score
91.7 99.8 98.8 70.0
Procedures Time Cost

Quality of the land administration index
Figure – Registering Property in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
Page 23
Figure – Registering Property in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of property value)

0.14
1.4
0.12
Cost (% of property value)

1.2
0.1
1
Time (days)
0.08
0.8
0.06
0.6
0.4 0.04
0.2 0.02
0 0
1 2
Procedures (number)
Page 24
Figure – Registering Property in United Arab Emirates and comparator economies – Measure of Quality
25 22.5
21.0
19.5 18.5
20
Index score
14.0 14.6
15
10

Arab Arabia East
Emirates &
North
Africa
Details – Registering Property in United Arab Emirates – Procedure, Time and Cost
1 The parties' submit the application at the Registration trustee's office 1 day AED 4,000; (Registration
Agency : Registration trustee trustee fee of AED 2,000
(If the
In October 2012, the Dubai Land Department started licensing companies to act in its behalf and
registered/transferred
use its system for property registration, among other services. As of August 2013, all transactions
property value less than
must be made through the 13 Registration trustees throughout Dubai.
Moreover, in April, 2014, the United Arab Emirates enacted administrative decree 52. It launched a AED 500,000) or AED
standard contract for property transfers making it possible for parties to process a transfer without 4,000 (If the
the need to consult a legal expert. registered/transferred
The parties have to present themselves at one of the registration trustee's office with the standard property value equal or
contract along with the following documents. more than AED 500,000))
1) Company Trade License (Original or Copy)
2) Shareholder Certificate (Arabic & English)
3) Memorandum of the company (Arabic & English)
4) Board Resolution (Arabic & English)
5) Power of Attorney from Company (Arabic & English)
6) Passport copies of shareholders
Parties then sign the contract and submit the application to one of the office's employees.
2 Register title at the Dubai Land Department Less than one day, AED 10,000; (AED 10 for
Agency : Land Department online registering each square
Once the documentation is submitted, the trustee proceeds to register the new owner on the meter of land, with a
Dubai Land Department. The offices have access to the Land Department system and registration
minimum of AED 10,000)
is completed on the spot within a couple of hours.
Page 25
Details – Registering Property in United Arab Emirates – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 21.0
Reliability of infrastructure index (0-8) 8.0
Type of land registration system in the economy: Deed Registration

System
What is the institution in charge of immovable property registration? Dubai Land

Department
In what format are past and newly issued land records kept at the immovable property registry of the largest Computer/Fully digital 2.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, Yes 1.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Dubai Land
Department
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Computer/Fully digital 2.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1.0
(geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Different databases 1.0
kept in a single database, in different but linked databases or in separate databases? but linked
Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0
number for properties?
Transparency of information index (0–6) 2.5
Who is able to obtain information on land ownership at the agency in charge of immovable property registration Only intermediaries 0.0
in the largest business city? and interested parties
Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5
and if so, how?
Link for online access: https://www.dubailand

.gov.ae/English/servic
es/Eservices/Pages/e
-services.aspx
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable Yes, online 0.5
property registration in the largest business city made publicly available–and if so, how?

-services.aspx
Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?

-services.aspx
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property No 0.0
registration agency?
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city? Only intermediaries 0.0
and interested parties
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
Page 26
Link for online access: http://www.dubailand.

gov.ae/English/Real%
20Estate%20Service
s/Survey%20Services
.pdf
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and Yes, online 0.5
if so, how does it communicate the service standard?
Link for online access: http://www.dubailand.

gov.ae/English/Real%
20Estate%20Service
s/Survey%20Services
.pdf
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0
cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 4.0
Are all privately held land plots in the largest business city formally registered at the immovable property Yes 2.0
registry?
Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Are all privately held land plots in the economy mapped? No 0.0
Land dispute resolution index (0–8) 6.5
Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5
them opposable to third parties?
Legal basis: Dubai Law No. 7 of

2006
Is the system of immovable property registration subject to a state or private guarantee? No 0.0
Type of guarantee:
Legal basis:
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5
checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
If yes, who is responsible for verifying the identity of the parties? Registrar;
Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local Dubai court of first
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located instance
in the largest business city?
How long does it take on average to obtain a decision from the first-instance court for such a case (without Less than a year 3.0
appeal)?
Are there publicly available statistics on the number of land disputes at the economy level in the first instance No 0.0
court?
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
Page 27
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
• Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of
• Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights
(0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to
• Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to
credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults) secured lender, BizBank.
• Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B
as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of
movable collateral.
Credit registry coverage (% of adults)
• Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
percentage of adult population
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.
Page 28
Getting Credit - United Arab Emirates
Strength of legal rights index (0-12) 6 3.1 6.1 12 (5 Economies)
Depth of credit information index (0-8) 8 5.3 6.8 8 (53 Economies)
Credit registry coverage (% of adults) 12.0 15.8 24.4 100.0 (2 Economies)
Credit bureau coverage (% of adults) 51.3 16.3 66.7 100.0 (14 Economies)
Figure – Getting Credit in United Arab Emirates – Score
70.0
Score - Getting Credit
Figure – Getting Credit in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Page 29
Figure – Legal Rights in United Arab Emirates and comparator economies
12 11
10
Index Score
8
6
6
4
4 3 3.1
2 1
0

Arab Arabia East
Emirates &
North
Africa
Page 30
Details – Legal Rights in United Arab Emirates
Strength of legal rights index (0-12) 6
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No
to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes
of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes
collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the No
original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an Yes
electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third Yes
party?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell Yes
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in United Arab Emirates and comparator economies
9 8 8 8 8 8
8
Index Score
7
6 5.3
5
4
3
2
1
0

Arab Arabia East
Emirates &
North
Africa
Page 31
Details – Credit Information in United Arab Emirates
Depth of credit information index (0-8) Credit bureau Credit registry Score
Are data on both firms and individuals distributed? Yes Yes 1
Are both positive and negative credit data distributed? Yes No 1
Are data from retailers or utility companies - in addition to data from banks and Yes No 1
financial institutions - distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes Yes 1
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Are data on loan amounts below 1% of income per capita distributed? Yes No 1
By law, do borrowers have the right to access their data in the credit bureau or Yes No 1
credit registry?
Can banks and financial institutions access borrowers’ credit information online Yes Yes 1
(for example, through an online platform, a system-to-system connection or
both)?
Are bureau or registry credit scores offered as a value-added service to help Yes No 1
banks and financial institutions assess the creditworthiness of borrowers?
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 3,947,008 767,332
Number of firms 251,455 210,267
Total 4,198,463 977,599
Percentage of adult population 51.3 12.0
Page 32
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019. See the methodology for more information.
• Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about
approval requirements for related-party transactions the business and the transaction.
• Extent of director liability index (0–10): Ability of minority
shareholders to sue and hold interested directors liable for The business (Buyer):
prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange.
remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law.
the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
• Ease of shareholder suits index (0–10): Access to internal
corporate documents; Evidence obtainable during trial and - Has not adopted bylaws or articles of association that go beyond the minimum requirements.
allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
• Extent of conflict of interest regulation index (0-30): Sum of
the extent of disclosure, extent of director liability and ease of The transaction involves the following details:
shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
• Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board.
and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
• Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
safeguards protecting shareholders from undue board control distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
and entrenchment
Buyer’s assets and is higher than the market value.
• Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the
transparency on ownership stakes, compensation, audits and authority of the company.
financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
• Extent of shareholder governance index (0–20): Sum of the
- The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
extent of shareholders rights, extent of ownership and control
directors that approved the transaction.
and extent of corporate transparency indices
• Strength of minority investor protection index (0–50): Sum

of the extent of conflict of interest regulation and extent of
shareholder governance indices
Page 33
Protecting Minority Investors - United Arab Emirates
Stock exchange information
Stock exchange Dubai Financial Market
Stock exchange URL http://www.dfm.ae
Listed firms with equity securities 64
City Covered Dubai
Extent of disclosure index (0-10) 10.0 6.4 6.5 10 (13 Economies)
Extent of director liability index (0-10) 10.0 4.8 5.3 10 (3 Economies)
Ease of shareholder suits index (0-10) 4.0 4.7 7.3 10 (Djibouti)
Extent of shareholder rights index (0-6) 4.0 3.2 4.7 6 (19 Economies)
Extent of ownership and control index (0-7) 7.0 3.6 4.5 7 (9 Economies)
Extent of corporate transparency index (0-7) 5.0 3.5 5.7 7 (13 Economies)
Figure – Protecting Minority in United Arab Emirates – Score
80.0
Score - Protecting Minority Investors
Figure – Protecting Minority Investors in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Page 34
Figure – Protecting Minority Investors in United Arab Emirates and comparator economies – Measure of Quality
the United Arab Emirates 5 10 10 7 4 4
Bahrain 4 4 8 7 5 5
Jordan 6 4 4 6 2 3
Kuwait 7 9 5 6 2 4
Saudi Arabia 7 9 9 6 5 7
OECD high income 5.6 5.6 6.6 4.3 4.5 7.4
Middle East & North Africa 3.5 4.8 6.4 3.6 3.2 4.7
0 5 10 15 20 25 30 35 40 45
Sub-Indicator Score
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
Page 35
Details – Protecting Minority Investors in United Arab Emirates – Measure of Quality
Answer Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10) 10.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0
excluding interested
parties
Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0
material facts
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0
transaction and on
the conflict of interest
Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 2.0
transaction and on
the conflict of interest
Extent of director liability index (0-10) 10.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0
Buyer? (0-1)
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Liable if unfair or 2.0
prejudicial
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Liable if unfair or 2.0
prejudicial
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) Yes 1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) Yes 1.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1) Yes 1.0
Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair or 2.0
prejudicial
Ease of shareholder suits index (0-10) 4.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0
(0-1)
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documents that the 1.0
defendant relied on
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) No 0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0
questions only
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2) At the discretion of 0.0
the court
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6) 4.0
Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? No 0.0
Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares? Yes 1.0
Do shareholders elect and dismiss the external auditor? Yes 1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0
Page 36
Extent of ownership and control index (0-7) 7.0
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? Yes 1.0
Must the board of directors include independent and nonexecutive board members? Yes 1.0
Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0
Must the board of directors include a separate audit committee exclusively comprising board members? Yes 1.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? Yes 1.0
Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Extent of corporate transparency index (0-7) 5.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0
Must Buyer disclose information about board members’ primary employment and directorships in other Yes 1.0
companies?
Must Buyer disclose the compensation of individual managers? Yes 1.0
Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? No 0.0
Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0
Must Buyer disclose its audit reports to the public? Yes 1.0
Page 37
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.
Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size
per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
• Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the
including consumption taxes (value added tax, sales tax or
requirements of postfiling processes and time waiting.
goods and service tax)
• Method and frequency of filing and payment To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018). Taxes and mandatory contributions are measured
• Collecting information, computing tax payable
at all levels of government.
• Preparing separate tax accounting books, if required
• Completing tax return, filing with agencies The VAT refund process:
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
• Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
Total tax and contribution rate (% of commercial profits)
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
• Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
• Social contributions, labor taxes paid by employer VAT in June 2018.
• Property and property transfer taxes
The corporate income tax audit process:
• Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
• Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
• Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
• Time to obtain VAT refund (weeks)
• Time to comply with a corporate income tax correction (hours)
• Time to complete a corporate income tax correction (weeks)
Page 38
Paying Taxes - United Arab Emirates
Payments (number per year) 5 16.5 10.3 3 (2 Economies)
Time (hours per year) 116 202.6 158.8 49 (3 Economies)
Total tax and contribution rate (% of profit) 15.9 32.5 39.9 26.1 (33 Economies)
Postfiling index (0-100) 55.0 53.3 86.7 None in 2018/19
Figure – Paying Taxes in United Arab Emirates – Score
96.7 89.6 100.0 55.0
Payments Time Total tax and contribution rate Postfiling index
Figure – Paying Taxes in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
100: Bahrain (Rank: 1)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Page 39
Figure – Paying Taxes in United Arab Emirates and comparator economies – Measure of Quality
60 55.0 53.3
50
Index score
40 35.7
32.2
30
20
10
null null
0

Arab Arabia East
Emirates &
North
Africa
Page 40
Details – Paying Taxes in United Arab Emirates
Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR
mandatory (number) Payments rate contribution
contribution rate (% of
profit)
Employer paid - 1.0 online 12.0 12.5% gross salaries 14.10

Social security
contributions
Land 1.0 2% payable by Sale value of the 1.21

transfer/registrati the buyer and the transferred
on fee seller (total of property (seller's
4%) share only)
Trade license 1.0 Fee (AED 48,000 Varies with the 0.55
renewal fee approximately) activity, the size
and type of the
entity, number of
shareholders,
type of
shareholders,
nationality of
shareholders,
number of
employees and
the rental value
of commercial
premises.
Vehicle 1.0 AED 1,000 per 0.02

registration fee vehicle
Employee paid - 0.0 jointly 5% gross salaries 0.00 withheld

Social security
contributions
VAT 1.0 online 104.0 5% value-added not included
Totals 5 116 15.9
Page 41
Details – Paying Taxes in United Arab Emirates – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 0.0
Labor tax and contributions (% of profit) 14.1
Other taxes (% of profit) 1.8
Page 42
Details – Paying Taxes in United Arab Emirates – Measure of Quality
Answer Score
Postfiling index (0-100) 55.0
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? Yes
Restrictions on VAT refund process none
Percentage of cases exposed to a VAT audit (%) 75% - 100%
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) 28.0 44.0
Time to obtain VAT refund (weeks) 21.0 66.0
Corporate income tax audits
Does corporate income tax exist? No
Percentage of cases exposed to a corporate income tax audit (%) Not applicable
Time to comply with a corporate income tax correction (hours) No corporate income No CIT
tax
Time to complete a corporate income tax correction (weeks) No corporate income No CIT
tax
Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Page 43
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding
tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or
importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
• Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
origin economy
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
• Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
• Covers all documents required by law and in practice, including
electronic submissions of information
Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the
Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
• Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about
exchange rates.
• Inspections by other agencies (if applied to more than 20% of
shipments)
Assumptions of the case study:
• Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in
or border the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
Domestic transport
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
• Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times
port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
• Transport between warehouse and port/border the largest purchaser of this product. Shipment value is assumed to be $50,000.
• Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and
route the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.
Page 44
Trading across Borders - United Arab Emirates
Time to export: Border compliance (hours) 27 52.5 12.7 1 (19 Economies)
Cost to export: Border compliance (USD) 462 441.8 136.8 0 (19 Economies)
Time to export: Documentary compliance (hours) 5 66.4 2.3 1 (26 Economies)
Cost to export: Documentary compliance (USD) 140 240.7 33.4 0 (20 Economies)
Time to import: Border compliance (hours) 54 94.2 8.5 1 (25 Economies)
Cost to import: Border compliance (USD) 553 512.5 98.1 0 (28 Economies)
Time to import: Documentary compliance (hours) 12 72.5 3.4 1 (30 Economies)
Cost to import: Documentary compliance (USD) 283 262.6 23.5 0 (30 Economies)
Figure – Trading across Borders in United Arab Emirates – Score
83.6 56.4 97.9 65.0 81.0 53.9 95.4 59.5
Time Cost Time Cost Time Cost Time Cost

to to to to to to to to
export: export: export: export: import: import: import: import:
Border Border Documentary Documentary Border Border Documentary Documentary
compliance compliance compliance compliance compliance compliance compliance compliance
Figure – Trading across Borders in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Page 45
Figure – Trading across Borders in United Arab Emirates – Time and Cost
Time (hours) Cost (USD)

60 54 553 600
50 462 500
Time (hours)
Cost (USD)
40 400
30 27 283 300
20 140 200
12
10 5 100
0 0
Export Export Import Import

- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance
Page 46
Details – Trading across Borders in United Arab Emirates
Characteristics Export Import
Product HS 39 : Plastics and articles thereof HS 8708: Parts and accessories of motor vehicles
Trade partner India Japan
Border Jebel Ali port Jebel Ali port
Distance (km) 35 35
Domestic transport time (hours) 3 3
Domestic transport cost (USD) 200 200
Details – Trading across Borders in United Arab Emirates – Components of Border Compliance
Time to Complete (hours) Associated Costs (USD)
Export: Clearance and inspections required by 3.0 95.0

customs authorities
Export: Clearance and inspections required by 0.0 0.0

agencies other than customs
Export: Port or border handling 24.0 366.7
Import: Clearance and inspections required by 26.0 220.0

customs authorities
Import: Clearance and inspections required by 0.0 0.0

agencies other than customs
Import: Port or border handling 48.0 333.3
Page 47
Details – Trading across Borders in United Arab Emirates – Trade Documents
Export Import
Commercial Invoice Commercial invoice
Packing List Packing list
Certificate of Origin Bill of lading
SOLAS certificate Certificate of origin
Bill of lading Technical Standard Certificate (from the ESMA)
Delivery Advise
SOLAS certificate
Page 48
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019. See the methodology for more information.
Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic
(calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
• Time to file and serve the case
• Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the
case are used:
• Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the
claim value) second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
• Average attorney fees adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local currency of
• Court costs
USD 5,000, whichever is greater.
• Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
Quality of judicial processes index (0-18)
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
• Court structure and proceedings (-1-5) claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
• Case management (0-6) was not adequate.
• Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
• Alternative dispute resolution (0-3)
Page 49
Enforcing Contracts - United Arab Emirates
Standardized Case
Claim value AED 301,109
Court name Dubai Commercial Court
City Covered Dubai
Time (days) 445 622.0 589.6 120 (Singapore)
Cost (% of claim value) 21.0 24.7 21.5 0.1 (Bhutan)
Quality of judicial processes index (0-18) 14.0 6.6 11.7 None in 2018/19
Figure – Enforcing Contracts in United Arab Emirates – Score
73.4 76.5 77.8
Time Cost Quality of judicial processes index
Figure – Enforcing Contracts in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
Page 50
Figure – Enforcing Contracts in United Arab Emirates – Time and Cost
Time (days) Cost (% of claim value)
Cost (% of claim value)

700 635 642 31.2 622.0 35
566 589.6 575
600 27.5 30
24.7
Time (days)
500 21.5 445 25

21.0
400 18.6 20
14.7
300 15
200 10
100 5
0 0
Bahrain Jordan Kuwait Middle OECD Saudi United

East high Arabia Arab
& income Emirates
North
Africa
Page 51
Figure – Enforcing Contracts in United Arab Emirates and comparator economies – Measure of Quality
the United Arab Emirates 2 4 3 5
Bahrain 2 3 1 3
Jordan 3 2 1 2
Kuwait 2.5 1 0 4
Saudi Arabia 2 3.5 2 4
OECD high income 2.5 3.2 2.4 3.6
Middle East & North Africa 2.2 1.1 0.5 2.9
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in United Arab Emirates
Indicator
Time (days) 445
Filing and service 21
Trial and judgment 280
Enforcement of judgment 144
Cost (% of claim value) 21.0
Attorney fees 10
Court fees 9.4
Enforcement fees 1.6
Quality of judicial processes index (0-18) 14.0
Court structure and proceedings (-1-5) 5.0
Case management (0-6) 4.0
Court automation (0-4) 3.0
Alternative dispute resolution (0-3) 2.0
Page 52
Details – Enforcing Contracts in United Arab Emirates – Measure of Quality
Answer Score
Quality of judicial processes index (0-18) 14.0
Court structure and proceedings (-1-5) 5.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5
2. Small claims court 1.5
2.a. Is there a small claims court or a fast-track procedure for small claims? Yes
2.b. If yes, is self-representation allowed? Yes
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, automatic 1.0
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6) 4.0
1. Time standards 1.0
1.a. Are there laws setting overall time standards for key court events in a civil case? Yes
1.b. If yes, are the time standards set for at least three court events? Yes
1.c. Are these time standards respected in more than 50% of cases? Yes
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted? No
2.b. Are adjournments limited to unforeseen and exceptional circumstances? No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) Yes 1.0
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0
5. Are there any electronic case management tools in place within the competent court for use by judges? Yes 1.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers? Yes 1.0
Court automation (0-4) 3.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? Yes 1.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court? Yes 1.0
3. Can court fees be paid electronically within the competent court? Yes 1.0
4. Publication of judgments 0.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public No
through publication in official gazettes, in newspapers or on the internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made No
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
Alternative dispute resolution (0-3) 2.0
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No
that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
Page 53
2. Mediation/Conciliation 0.5
2.a. Is voluntary mediation or conciliation available? Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or No
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
Page 54
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more
information.
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
• Measured in calendar years
• Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
• Measured as percentage of estate value
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
• Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise.
• Fees of insolvency administrators
In addition, Doing Business evaluates the quality of legal framework applicable to judicial
• Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have
• Assessors’ and auctioneers’ fees been implemented in each economy covered.
• Other related fees

Outcome
• Whether business continues operating as a going concern or

business assets are sold piecemeal
Recovery rate for creditors
• Measures the cents on the dollar recovered by secured

creditors
• Outcome for the business (survival or not) determines the

maximum value that can be recovered
• Official costs of the insolvency proceedings are deducted

• Depreciation of furniture is taken into account
• Present value of debt recovered
Strength of insolvency framework index (0- 16)
• Sum of the scores of four component indices:

• Commencement of proceedings index (0-3)
• Management of debtor’s assets index (0-6)
• Reorganization proceedings index (0-3)
• Creditor participation index (0-4)
Page 55
Resolving Insolvency - United Arab Emirates
Recovery rate (cents on the dollar) 27.7 27.3 70.2 92.9 (Norway)
Time (years) 3.2 2.7 1.7 0.4 (Ireland)
Cost (% of estate) 20.0 14.0 9.3 1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern) 0 .. .. ..
Strength of insolvency framework index (0-16) 11.0 6.3 11.9 None in 2018/19
Figure – Resolving Insolvency in United Arab Emirates – Score
29.8 68.8
Recovery rate Strength of insolvency framework index
Figure – Resolving Insolvency in United Arab Emirates and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Page 56
Figure – Resolving Insolvency in United Arab Emirates – Time and Cost
Time (years) Cost (% of estate)

4.5 4.2 25
Cost (% of estate)
4 20.0 20.0
3.5 3.2 20
Time (years)
3.0
3 2.7 14.0
2.5 15
2.5
2 9.5 10.0 1.7 9.3
10
1.5
1 5
0.5
0 0
Bahrain Jordan Kuwait Middle OECD No United

East high Practice Arab
& income Saudi Emirates
North Arabia
Africa
Page 57
Figure – Resolving Insolvency in United Arab Emirates and comparator economies – Measure of Quality
the United Arab Emirates 6 2 1 2
Bahrain 6 2.5 1 2
Jordan 4 2.5 1 0.5
Kuwait 4 2 1 0
Saudi Arabia 3.5 3 2 2
OECD high income 5.3 2.8 2.1 1.9
Middle East & North Africa 3.7 2.3 1.3 0.6
0 2 4 6 8 10 12 14
Sub-Indicator Score
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Figure – Resolving Insolvency in United Arab Emirates and comparator economies – Recovery Rate
Recovery rate(cents on the dollar)
45 41.3
40
35 32.2
30 27.7 27.3 27.3
25
20
15
10
5
0
No Practice
United Arab Emirates Bahrain Jordan Kuwait Saudi Arabia Middle East & North Africa
Page 58
Details – Resolving Insolvency in United Arab Emirates
Indicator Answer Score
Proceeding foreclosure BizBank will most likely initiate foreclosure proceedings, because insolvency proceedings are very rare. Liquidations
take longer and cost more than foreclosure, while the return to the bank may be less.
Outcome piecemeal sale The hotel can only continue operating if another company buys it, which is not a likely outcome.
Time (in years) 3.2 First, the bank will need to notify the hotel of its intent to enforce its rights. If the debtor does not cooperate, the notice
period can take up to 5-6 months. BizBank will then petition the court for an execution order. Mirage will be able to
respond to BizBank’s claims and present its case before the execution order is granted. This process will take up to 1
year. After BizBank obtains the execution order, it will have to schedule another court date to enforce the execution
order. The court will appoint a trustee to evaluate and sell Mirage’s assets. This part will take up to 8-12 months.
Hotel’s assets will be sold at a public auction and at least two auctions will probably be held before the assets can be
sold successfully. It will take up to 1 year to sell the assets. Some contributors from the Economic Court mentioned
that the time and cost is reduced for 2015 due to the electronic filing but most contributors said that it changed the
system but it does not necessarily change the time to look at cases as we followed up with them. The cost also
remains the same.
Cost (% of estate) 20.0 Major expenses will include: Attorney’s fees – 10% of the value of the estate, Expert fees – 7% of the value of the
estate, Auctioneer’s fees – 2.7% of the value of the estate, Court fees - <1% of the value of the estate.
Recovery rate 27.7

(cents on the dollar)
Page 59
Details – Resolving Insolvency in United Arab Emirates – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 11.0
Commencement of proceedings index (0-3) 2.0
What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor may file for 0.5
liquidation only
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor 0.5
may file for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (c) Both (a) and (b) 1.0
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value options are available,
of its assets but only one of them
needs to be complied
with
Management of debtor's assets index (0-6) 6.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0
debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0
insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary 1.0
unsecured creditors
but not over secured
creditors
Reorganization proceedings index (0-3) 2.0
Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0
whose rights are
affected by the
proposed plan
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as Yes 1.0
what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0
separately and are creditors in the same class treated equally?
Creditor participation index (0-4) 1.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency No 0.0
representative?
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0
representative?
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0
creditors' claims?
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Page 60
Employing Workers
Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
The most recent round of data collection was completed in May 2019. See the methodology for more information.
Hiring To make the data comparable across economies, several assumptions about the worker and the
(i) whether fixed-term contracts are prohibited for permanent business are used.
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum The worker:
wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
worker. - Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
Working hours
(i) maximum number of working days allowed per week; (ii) The business:
premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy).
(iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11
weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city.
leave. - Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
Redundancy rules food retail sector and they apply even to firms that are not party to them.
(i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those
whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements.
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
Page 61
Employing Workers - United Arab Emirates
Details – Employing Workers in United Arab Emirates
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? No
Maximum length of a single fixed-term contract (months) 24.0
Maximum length of fixed-term contracts, including renewals (months) No limit
Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0
Ratio of minimum wage to value added per worker 0.0
Maximum length of probationary period (months) 6.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 50.0
Premium for overtime work (% of hourly pay) 25.0
Restrictions on night work? No
Restrictions on weekly holiday? Yes
Restrictions on overtime work? No
Paid annual leave for a worker with 1 year of tenure (working days) 26.0
Paid annual leave for a worker with 5 years of tenure (working days) 26.0
Paid annual leave for a worker with 10 years of tenure (working days) 26.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 26.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? No
Third-party approval if one worker is dismissed? No
Third-party notification if nine workers are dismissed? No
Third-party approval if nine workers are dismissed? No
Retraining or reassignment obligation before redundancy? No
Priority rules for redundancies? No
Priority rules for reemployment? No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 0.0
Page 62
Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 0.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 0.0
Unemployment protection after one year of employment? No
Page 63
Business Reforms in United Arab Emirates
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.
=Doing Business reform making it easier to do business. = Change making it more difficult to do business.
DB2020
Starting a Business: The United Arab Emirates made starting a business less expensive by reducing the fees for business incorporation.
Dealing with Construction Permits: The United Arab Emirates made dealing with construction permits easier by reducing the number of inspections using a risk-based
approach.
Protecting Minority Investors: The United Arab Emirates increased minority investor protections by providing for disqualification of directors in cases of prejudicial
conflicts of interest.
Paying Taxes: The United Arab Emirates introduced a value added tax.
Trading across Borders: The United Arab Emirates made trading across borders easier by reducing the time to export by fully digitizing certificates of origin and the
cost to import by issuing certificates of conformity that cover multiple shipments.
DB2019
Starting a Business: The United Arab Emirates made starting a business easier by improving online registration.
Getting Electricity: The United Arab Emirates made getting electricity easier by eliminating all costs for commercial and industrial connections of up to 150 kilo-Volt-
Amperes (kVA).
Getting Credit: The United Arab Emirates strengthened access to credit by introducing the possibility of granting a nonpossessory security right in a single category of
movable assets without requiring a specific description of the collateral, by allowing out of court enforcement of the security interest, and by establishing a unified and
modern collateral registry.
DB2018
Dealing with Construction Permits: The United Arab Emirates strengthened construction quality control by imposing stricter qualification requirements for
professionals reviewing drawings. It also reduced the time and cost to obtain a building permit by eliminating a procedure.
Getting Electricity: The United Arab Emirates made getting electricity easier by streamlining the connection process and eliminating interactions between the
customer and the utility to obtain external works. Getting electricity was also made less costly by the elimination of the security deposit for connections under 150 kVA.
Getting Credit: The United Arab Emirates improved access to credit information by starting to provide consumer credit scores to banks and financial institutions.
Resolving Insolvency: The United Arab Emirates made resolving insolvency easier by adopting an insolvency law that introduces a reorganization procedure and
facilitates continuation of the debtor’s business during insolvency proceedings.
DB2017
Starting a Business: The United Arab Emirates made it easier to start a business by streamlining name reservation and articles of association notarization and
merging registration procedures with the Ministry of Human Resources and General Pensions and Social Security Authority.
Dealing with Construction Permits: The United Arab Emirates made dealing with construction permits easier by implementing risk-based inspections and merging the
final inspection into the process of obtaining a completion certificate.
Getting Electricity: The United Arab Emirates reduced the time required to obtain a new electricity connection by implementing a new program with strict deadlines for
reviewing applications, carrying out inspections and meter installations. The United Arab Emirates also introduced compensation for power outages.
Registering Property: The United Arab Emirates made registering property easier by increasing the transparency at its land registry.
Protecting Minority Investors: The United Arab Emirates strengthened minority investor protections by increasing shareholder rights and role in major corporate
decisions, clarifying ownership and control structures, and requiring greater corporate transparency.
Employing Workers: The United Arab Emirates reduced the duration of a single fixed-term contract from 48 to 24 month.
DB2016
Dealing with Construction Permits: The United Arab Emirates made dealing with construction permits easier by streamlining the process for obtaining the civil defense
approval.
Getting Electricity: The United Arab Emirates made getting electricity easier by reducing the time needed to provide a connection cost estimate.
Protecting Minority Investors: The United Arab Emirates strengthened minority investor protections by barring a subsidiary from acquiring shares in its parent
company and by requiring that a potential acquirer, upon reaching 50% or more of the capital of a company, make a purchase offer to all shareholders.
Page 64
Enforcing Contracts: The United Arab Emirates made enforcing contracts easier by implementing electronic service of process, by introducing a new case management
DB2015
Registering Property: The United Arab Emirates made transferring property easier by introducing new service centers and a standard contract for property
transactions.
Getting Credit: In the United Arab Emirates the credit bureau improved access to credit information by starting to exchange credit information with a utility.
Protecting Minority Investors: The United Arab Emirates strengthened minority investor protections by introducing additional approval requirements for related-party
transactions and greater requirements for disclosure of such transactions to the stock exchange; by introducing a requirement that interested directors be held liable in a
related-party transaction that is unfair or constitutes a conflict of interest; and by making it possible for shareholders to inspect the documents pertaining to a related-
party transaction, appoint auditors to inspect the transaction and request a rescission of the transaction if it should prove to be unfair.
DB2014
Getting Electricity: The United Arab Emirates made getting electricity easier by eliminating the requirement for site inspections and reducing the time required to
provide new connections.
Registering Property: The United Arab Emirates made transferring property easier by increasing the operating hours of the land registry and reducing transfer fees.
Protecting Minority Investors: The United Arab Emirates strengthened investor protections by introducing greater disclosure requirements for related-party
transactions in the annual report and to the stock exchange and by making it possible to sue directors when such transactions harm the company.
DB2013
Starting a Business: The United Arab Emirates made starting a business easier by eliminating the requirement for a company to prepare a name board in English and
Arabic after having received clearance on the use of office premises.
Getting Electricity: In the United Arab Emirates the Dubai Electricity and Water Authority made getting electricity easier by introducing an electronic “one window, one
step” application process allowing customers to submit and track their applications online and reducing the time for processing the applications.
Paying Taxes: The United Arab Emirates made paying taxes easier for companies by establishing an online filing and payment system for social security contributions.
DB2012
Starting a Business: The United Arab Emirates made starting a business easier by merging the requirements to file company documents with the Department for
Economic Development, to obtain a trade license and to register with the Dubai Chamber of Commerce and Industry.
Getting Credit: The United Arab Emirates improved its credit information system through a new law allowing the establishment of a federal credit bureau under the
supervision of the central bank.
DB2011
Getting Credit: The United Arab Emirates enhanced access to credit by setting up a legal framework for the operation of the private credit bureau and requiring that
financial institutions share credit information.
Trading across Borders: The United Arab Emirates streamlined document preparation and reduced the time to trade with the launch of Dubai Customs’ comprehensive
new customs system, Mirsal 2.
DB2010
Starting a Business: The United Arab Emirates made starting a business easier by abolishing the minimum capital requirement and simplifying documentation
requirements for registration, including by eliminating the requirement to show proof of deposit of capital.
Dealing with Construction Permits: The United Arab Emirates made dealing with construction permits less time consuming by improving its online system for
obtaining no-objection certificates, building permits and completion certificates.
Trading across Borders: The United Arab Emirates made trading across borders easier through greater capacity at the container terminal in Dubai, elimination of the
requirement for a terminal handling receipt and improvements in the banking sector reducing the cost of trade finance products.
DB2009
Getting Credit: The United Arab Emirates improved access to credit information by establishing a new private credit bureau that collects information on all loans and
by guaranteeing borrowers’ right to inspect their own credit data in the new bureau.
Enforcing Contracts: The United Arab Emirates made enforcing contracts easier by introducing electronic filing for court documents.
DB2008
Starting a Business: The United Arab Emirates made starting a business easier by allowing publication of the company records at the Department of Economic
Development.
Employing Workers: The United Arab Emirates abolished the requirement for severance payments.
Page 65
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United Arab Emirates: Economy Profile

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Doing Business 2020 United Arab Emirates

Economy Profile of United Arab Emirates

Getting credit Movable collateral laws and credit information systems

Employing workers Flexibility in employment regulation and redundancy cost

About Doing Business

To learn more about Doing Business please visit doingbusiness.org

Ease of Doing Business in DB RANK DB SCORE

United Arab Emirates

City Covered Dubai

Rankings on Doing Business topics - United Arab Emirates

What the indicators measure Case study assumptions

Starting a Business - United Arab Emirates

Legal form Limited Liability Company

Paid-in minimum capital requirement No minimum

City Covered Dubai

Procedure – Men (number) 2 6.5 4.9 1 (2 Economies)

Time – Men (days) 3.5 19.7 9.2 0.5 (New Zealand)

Procedure – Women (number) 3 7.1 4.9 1 (2 Economies)

Time – Women (days) 4.5 20.3 9.2 0.5 (New Zealand)

Figure – Starting a Business in United Arab Emirates – Score

91.2 96.5 91.4 100.0

Procedures Time Cost Paid-in min. capital

DB 2020 Starting a Business Score

94.8: United Arab Emirates (Rank: 17)

93.1: Saudi Arabia (Rank: 38)

89.6: Bahrain (Rank: 67)

88.4: Kuwait (Rank: 82)

84.5: Jordan (Rank: 120)

84.0: Regional Average (Middle East & North Africa)

Time (days) Cost (% of income per capita)

Cost (% of income per capita)

No. Procedures Time to Complete Associated Costs

3) Dubai Chamber of Commerce fees: AED 1,200

4) Ministry of Economy fees: AED 3,000

5) Local trade license fees: AED 100

6) Commercial License - Tejari fees: AED 200

Total fees: AED 34,340

Applies to women only.

Dealing with Construction Permits

What the indicators measure Case study assumptions

• Quality of building regulations (0-2) The water and sewerage connections:

Dealing with Construction Permits - United Arab Emirates

Estimated value of warehouse AED 7,934,638.80

City Covered Dubai

Procedures (number) 11 15.7 12.7 None in 2018/19

Time (days) 47.5 123.6 152.3 None in 2018/19

Cost (% of warehouse value) 2.2 4.4 1.5 None in 2018/19

Figure – Dealing with Construction Permits in United Arab Emirates – Score

76.0 93.8 89.2 100.0

Procedures Time Cost Building quality control index

DB 2020 Dealing with Construction Permits Score

89.8: United Arab Emirates (Rank: 3)

83.1: Bahrain (Rank: 17)

78.3: Saudi Arabia (Rank: 28)

71.9: Kuwait (Rank: 68)

61.7: Regional Average (Middle East & North Africa)

60.3: Jordan (Rank: 138)

Time (days) Cost (% of warehouse value)

Cost (% of warehouse value)