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CHRISTOPHE BOERAEVE - PROFESSOR - INTERNATIONAL TAX & CORPORATE LAWYER
WWW.LAW-RIGHT.COM
UAESWIMMING IN FOREIGN WATERS ?
DOING BUSINESS ABROAD
Q
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INSTRUMENT
INNOVATORS SUMMIT
10 - 11 OCTOBER, 2016 / BRUXELLES, BELGIUM
https://events.b2match.com/e/innovators-summit-2016
https://ec.europa.eu/easme/en
European Commission, Executive Agency for Small and Medium-sized Enterprises (EASME)SME SUMMIT Event Team
Marco MalacarneDIRECTOR
1.6 billion
World Muslim population (Pew Research Center, 2014)
United Arab EmiratesAn entry door to the MENA region -Islamic statesYou want to grow and expand abroad Europe? Scaling up businesses implies important changes and challenges for enterprises from decision making, to people management, deploying abroad, finding partners and ensuring cash flow, expending your line production and sales/distributors on international level. Which legislation is relevant for me and what are the ‘golden (cultural) rules’ to respect?
23% OF THE WORLD POPULATION
THE STATE OFSMALL & MEDIUM
ENTERPRISES (SMES) IN DUBAI
http://dubaisme100.ae/Data/ResourceCentre/SME_Report_English.pdf
United Arab Emirates: Swimming in foreign waters -
doing business abroadModerator: Mrs Isabel Nolle, Mr Ted Erikkson
14’PRESENTATION
YOU WILL NOT BE CHARGED IF YOU ASK QUESTIONS
7’DISCUSS AND PREPARE
QUESTIONS
“Collective intelligence" or collective wisdom in the room
7’COLLECTIVE /
HORIZONTAL ANSWER TO QUESTIONS
The “world café” style intends to facilitate open and intimate
discussion, and link ideas within a group of maximum 30
people
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MUSLIMS-CHRISTIANS-JEWS-ATHEISTS-BUDDHISTS…
30%
52%
WHAT DO WE HAVEIN COMMON ?
EU - UAE RESIDENTS“You, the people, have the power (...)
The power to create happiness! You, the people, have the power to make this life free and beautiful, to make this life
a wonderful adventure.
Let us fight to free the world, to do away with national barriers,
to do away with greed, with hate and intolerance. Let us fight for a world of reason, a world where science and progress will
lead to all men’s happiness.”
Charlie Chaplin, The Great Dictator, 1940.
“Our job is to provide an environment that unlocks women’s potential – one that protects their dignity and femininity, helps them create the necessary balance in their lives, and values their talents and potential. Given this environment, I am confident that women will perform nothing short of miracles.”
Mohammed bin Rashid Al Maktoum, Flashes of Thought
IN WHAT WAYS WILL WE CONNECT ?
“The race for excellence has no finish line.”
― Mohammed bin Rashid Al Maktoum, رؤيتي
نهيان آل سلطان بن زايد بن Sheikh Khalifa bin Zayedخليفةbin Sultan Al Nahyan
QUAM NUNC PUTAMUS PARUM CLARAM, ANTEPOSUERIT L ITTERARUM
آل راشد بن محمدمكتوم
Sheikh Mohammed bin Rashid Al
Maktoum
ABDUL BASET AL JANAH
Alexandar Williams
SAMI DHAEN AL QAMZI
CHIEF EXECUTIVE OFFICER, DUBAI SME
DIRECTOR GENERAL, DEPARTMENT OFECONOMIC DEVELOPMENT – DUBAI
DIRECTOR, BUSINESS DEVELOPMENT, DEPARTMENT OF ECONOMIC DEVELOPMENT, DUBAI
Mohammad Ahmad Al Bowardi
Khaldoun Khalifa Al Mubarak
Enrico M. Villa
HTTPS: / /WWW.LINKEDIN.COM/COMPANY/GOVERNMENT-OF-ABU-DHABI -TECHNOLOGY-DEVELOPMENT-COMMITTEE
DIRECTOR ENTERPRISE DEVELOPMENT AND INNOVATION, ABU DHABI TECHNOLOGY DEVELOPMENT COMMITTEE
CHAIRMAN - EXECUTIVE AFFAIRS AUTHORITYVICE-CHAIRMAN -
ABU DHABI TECHNOLOGY DEVELOPMENT COMMITTEE
"We aim for Abu Dhabi to be an Emirate in which the benefits of science and technology pervade every aspect of life, empowering
the Nation, transforming the economy, and inspiring the people."
CHAIRMAN - ABU DHABI TECHNOLOGY DEVELOPMENT COMMITTEE
Aliquam nonummyJohan
BEERLANDT
CHRISTOPHE BOERAEVE
Qaisar Hijazin
QUAM NUNC PUTAMUS PARUM CLARAM, ANTEPOSUERIT L ITTERARUM
CHAIRMAN OF THE ABLCC
SECRETARY GENERAL OF THE ARAB-BELGIAN-LUXEMBOURG CHAMBER OF COMMERCE
PROFESSOR & INTERNATIONAL TAX - CORPORATE LAWYER
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Christophe BoeraeveLaw Right
TAX & CORPORATE Lawyer - Business Coach - EU EXPERT in the EU HORIZON
2020 PROGRAM
https://prezi.com/-nteypgvqp4z/conducting-business-effectively-in-the-uae/
https://be.linkedin.com/in/cboeraevetaxlawyer
http://www.law-right.com/international/united-arab-emirates/
Tel: +32 2 643 11 00Fax: +32 2 643 11 08Avenue Brugmann, 183 - 1190 Brussels - BelgiumMobiles: Belgium +32 485 69 50 22 - UAE +971 56 760 0925Web: law-right.com
I am a Belgian and UAE resident, friend of the Middle-East Companies and Private individuals.
I am specialized in International Tax Structuring & Planning, Corporate Taxation for Enterprises and Individuals, Cross-border Tax aspects, Restructurings, Company law, International mobility, Contract drafting, Inheritance, Treaties, Estate transactions & Contract law.
COMPANY NAME, 5647 STREET ADDRESS, COUNTRY
SOLLEMNES IN 2020
YOUREMAIL@MYEMAIL .COMPHONE: 1(355)979 68 76
HTTP: / /OW.LY/DG0R304ZJYU
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HOW MANY UNITED ARAB EMIRATES ?
30%
52%
http://government.ae/en/seven-emirates
اnلnمnتnحnدnة nةnيnبnرnعnلnا nتnاnرnاnمnإلnا nةnلnوnد
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HOW MANY GCC COUNTRIES ?
30%
52%
http://www.gcc-sg.org/en-us/Pages/default.aspx
اnلnعnرnبnيnة nجnيnلnخnلnا nلnوnدnل nنnوnاnعnتnلnا nسnلnجnم
UAECHIEF EXECUTIVE OFFICER, DUBAI SME
This first-ever report provides both the macro and micro picture of SMEs
operating in the overall SME economy as well as in the sub-sectors of
trading, services and manufacturing. It is hoped that the report will serve
as a reference point for all key stakeholders in economic development at
the emirate and federal levels.
ABDUL BASET AL JANAHI
First of all, the overall productivity of SMEs, and by extension, their competiveness is comparatively lower than their counterparts in Singapore and South Korea.
Secondly, adoption of technologies in improving efficiencies, processes and services among Dubai’s SMEs is still lacking.
Thirdly, our SMEs also need to improve their overallcorporate governance, especially financial governance and transparency, if it seeks to operate in global markets and attract investors and seek business collaborations.
Technology Evaluation in
the UAE
https://prezi.com/qg0qmkxhgb-4/mr-boeraeve-presentation-technology-evaluation-4/
Fourthly, our SMEs need to improve their HRcapabilities by hiring and rewarding the right talent, and making their organisations a great place to work.
Finally, our SMEs also need to invest in innovation, and create a culture of innovation in their firms to ensure new markets, products and services. clari, fiant sollemnes in
Roundtable on May 13 2013 at DUBAI SME as a Board member of
Micro Automation Industries (http://www.microautomation.net).
Dubai to become the best
place to start, grow,
invest in and expand SMEs to
be global enterprises
SMES IN DUBAI ARE FOUND TO HAVE A HIGH FOCUS ON DEVELOPING BUSINESS
FROM INTERNATIONAL MARKETS / OPERATIONS
BACKBONESmall and Medium Enterprises (SMEs) are the backbone of Dubai’s economy, representing 95% of all establishments in the Emirate. These SME businesses
account for 42% of the workforce and contribute around 40% to the total value added generated in Dubai’s economy.
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Daniel Dolor
52%
Typi non habent claritatem insitam; est usus legentis in iis qui facit eorum claritatem. Investigationes demonstraverunt lectores legere me lius quod ii
legunt saepius. Claritas est etiam processus dynamicus, qui sequitur mutationem
The Trading sector accounts for a majority (57%) of SMEs in Dubai, followed by the Services sector (35%), and subsequently followed by the
Manufacturing sector (8%)
MICRO FIRMS
<=AED 9mn
SMALL
<=AED 50mn
MEDIUM
<=AED 250mn
72%
18%
5%
The Department of Economic Development (DED) in Dubai issued 22,691 business licences in 2015, an increase of 17.4 percent
compared the total number of licenses issued in 2014. The latest figures also represent a 75 percent increase in new licences issued between
2010 and 2015, at an annual average of 15 percent.
Composition of Key Sectors
Manufacturing SectorManufacturers of wearing apparel constitute a majority (33%) of the Manufacturing establishmentsin Dubai, followed by manufacturers of fabricated metal products (except machinery andequipment) accounting for another 16% of the total manufacturing enterprises. In terms of theemployee count, 54% of the Manufacturing firms in Dubai have between 1 and 10 employees,while another 20% have between 11 and 25 employees.
Segments with the highest contribution to the Manufacturing sector’s gross value-add includeManufacturing of Fabricated Metal products, except machinery and equipment (17%), Manufacturingof Basic Metals (15%), and Manufacturing of other Non-metallic Mineral products (9%).7
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NET MARGINS
8-22%2-8%
Net margins are the highest in the case of Business Services (net margin ratio ranges between 10-22%),closely followed by Professional Services (net margin ratio ranges between 8-20%)
Tour operators and travel agents have the lowest margins amongst all the segments (net margin ranges between 2-8%)
Restaurants & Catering businesses have high gross margins (gross margin ratio ranges between 50-60%) BUT their margins erode significantly at an operating level due to a high proportion of indirect costs within their total cost structures (operating margin ratio ranges between 12-18% and net margin ratio ranges between 10-15%)
10-15%
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ABDUL BASET AL JANAH
Gross margin ratio is a profitability ratio that compares the gross margin of a business to the net sales. This ratio measures how profitable a company sells its inventory or merchandise. In other words, the gross profit ratio is essentially the percentage markup
on merchandise from its cost.Operating margin — also known as operating income
margin, operating profit margin and return on sales (ROS) — is the ratio of operating income ("operating
profit" in the UK) divided by net sales, usually presented in percent. Net profit measures the
profitability of ventures after accounting for all costs.Net margin ratio is the ratio of net profits to revenues
for a company or business segment. Typically expressed as a percentage, net profit margins show how much of each dollar collected by a company as
revenue translates into profit. The equation to calculate net profit margin is: net margin = net profit / revenue.
The survey reflects that SMEs in Dubai are highly export-oriented with 51% of the SMEs
indicating that they have some part of their revenues coming from regional and international
markets (as compared to 44% in EU-27 and 18% in New Zealand).
GCC, Asia-Pacific and Africa are the key international markets / export destinations for
SMEs in Dubai.
STATE AND CHARACTERISTICS OF SMES IN DUBAI
INNOVATION 13% of the survey respondents indicated that they have implemented
some level ofinnovation either in terms of product innovation or process
enhancement. This prevalence is much lower as compared to other international economies (such as New Zealand, Malaysia, the UK and the overall
EU-27).
The major prevalence of innovation amongst Dubai SMEs is at the product/service level
(42% of the total prevalence of innovation), as compared to innovation within internal
processes (30%) and distribution & delivery formats (28%).
The key objective / motive towards investing / implementing innovation in business, as elicited by the majority of the respondents,
is to create a competitive advantage through product / service differentiation (38% of the SMEs indicated product/ service
differentiation as their key objective for implementing innovation in business).
INNOVATION Micro firms are intrinsically less innovative as compared to
Smalland Medium firms (only 6% of the Micro firms reported having
implemented some form of innovation within their business operations, as compared to 19% and 16% of the Small and Medium
firms, respectively).
Innovative SMEs are more internationally oriented as compared to non-innovative SMEs; higher prevalence of innovation is observed amongst exporting businesses (75%), vis-à-vis nonexporting SMEs
(48%).
Approximately 21% of the total survey respondents indicated use of advanced IT systems (enterprise level systems, such as ERP,
CRM systems, etc.) within their business operations. Service firms deploy IT more intensively than Manufacturing and Trading firms, as reflected by the fact that the proportion of firms with advanced IT systems is the highest in the case of the Services sector (at 26%), followed by the Manufacturing sector (at 18%) and subsequently
followed by the Trading sector (at 16%).
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for SMEs
There is limited availability of externally sourced start-up financing in Dubai. This is reflected inthe fact that a majority (80%) of the survey respondents indicated personal money or savings as the primary source of finance for commencing their business operations in Dubai.
The availability of bank finance for growth and operations is also limited, with only 23% of the survey respondents indicating that they have accessed bank finance in the last five years.
Another 37% businesses indicated that they have accessed term loans for capital
expansion / investment in their business, and about 4% mentioned that they have accessed
a combination of long-term and short-term financing. This reflects that at an overall level, only 10% of the SMEs (i.e. 41% of the 23% of the SMEs that had access to finance) have accessed long-term financing for capital
investment in their business.
1. PATIENCE IS A VIRTUE
2. PRICE SENSITIVITY
3. RELATIONSHIPS & NETWORKS
How often are you in the region ? What about a discount ? Religion - Family -
Business
THREE GOLDEN RULES
https://prezi.com/-nteypgvqp4z/conducting-business-effectively-in-
the-uae/#
The Gulf market is not about over-night successes. A two to three-year investment in time and effort. It will take about five meetings with a new business prospect to actually sign on a deal. You will often be asked at a first meeting how often you are in the region.
You should be as commercial as possible in your pricing structures, trying to offer some form of discount where you can. You may wish to consider market entry price penetration, while being as competitive as possible.
I’s all about relationships and networks and you need to bear in mind that the upper echelons of society all know each other, often cross-border. They have built up networks over the years. So upset one and you risk upsetting them all. Diplomacy is key here.
It is important to follow up. During negotiations, there may be a tendency for your Gulf contacts to speak in vague terms, generalities, stories and metaphors, so it’s best to be absolutely clear about what you’ve agreed.
JUST ONE EXAMPLE…
MAI
Company Case-study made by JAFZA: http://ow.ly/Jydv304ZRGw
MAI
THEY MADE IT!
THEY MADE IT!
JUST ONE EXAMPLE…
MAI
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MUSLIMS-CHRISTIANS-JEWS-ATHEISTS-BUDDHISTS…
30%
52%
WHAT DO WE HAVEIN COMMON ?
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30%
52%
TRADE
YOU’VE BE WARNED!“With each new day in Africa, a gazelle wakes up knowing he must outrun the
fastest lion or perish. At the same time, a lion stirs and stretches, knowing he must
outrun the fastest gazelle or starve. It is no different for the human race. Whether you consider yourself a gazelle or a lion, you simply have to run faster than others to
survive.” ― Mohammed bin Rashid Al Maktoum, My
Vision: Challenges in the Race for Excellence
EXPO 2020http://expo2020dubai.ae
25,000,000
UAE VISION 2021
9,297,524
ABU DHABI VISION 2030
2,784,000
DUBAI SME 5 YEAR
STRATEGIC PLAN + DUBAI PLAN 20212,503,00
0http://ow.ly/Yc63304ZsPf
https://www.vision2021.ae/en
http://ow.ly/tBsr304Ztnt
SOLLEMNES IN 2020
SWIMMING IN FOREIGN WATER - DOING
BUSINESS ABROAD
60, RUE MIGNOT DELSTANCHE - 1050 BRUSSELS BELGIUM
UAEARAB-BELGIAN-LUXEMBOURG
CHAMBER OF [email protected]
+32(0)2 344 82 04
WWW.ABLCC.ORG
UAEQUESTIONS
