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Country Commercial Guides FY 1999: United Arab Emirates

CHAPTER I.  EXECUTIVE SUMMARY

The United Arab Emirates remains the most dynamic, expanding
economy in the Gulf region, despite the continued weakness in
world oil prices. U.S. exports to the U.A.E. increased by 3
percent in 1997 to more than 2.6 billion dollars, and have
continued their sharp increase through March of 1998. U.S. export
in the first quarter of 1998 are up 8.5% over last years's
levels.  U.S. exports should top three billion dollars in 1998. 
The U.A.E.'s economic growth is being fueled by two main factors:
an ongoing construction boom in both Abu Dhabi and Dubai, and
expansion of the greater Dubai area (including the neighboring
emirates of Sharjah and Ajman) as a regional business center and
trading hub.  Major projects throughout the Emirates, ranging
from refinery expansions and petrochemical projects to hotel and
tourism facilities to airport upgrades and expansions will ensure
that this boom continues at least through 2005.  Serious efforts
at enforcing new intellectual property rights laws during the
past 12 months are encouraging many U.S. firms, from film and
videos distributors to computer software manufacturers to look
seriously at the U.A.E. for the first time, which should add
another boost to the local market and enhance the U.A.E.'s role
as regional trade center.


In September the $ 1.2 billion Thuraya Mobile Telecommunication
Satellite contract was awarded to a U.S. firm.  In March of 1998,
the U.A.E. announced its intention to purchase U.S. fighter
aircraft, which could total more than $ 6 billion.  U.S. firm
continued to pursue major military sales opportunities in the
U.A.E.

 
The U.A.E. remains a highly competitive market dominated by
government procurement, where the emphasis is on being the lowest
bidder.  This is a strategy which many U.S. firms prefer not to
follow.  The preference given to U.S. companies and products
following the 1991 Gulf War has diminished in recent years. 
Japanese firms have returned to the U.A.E. with a vengeance,
especially in such key sectors as telecommunications, motor
vehicles, heavy machinery, and petroleum equipment.  European
firms continue to win a major portion of construction,
telecommunications, power and water, and 
defense major projects. 

The role of the greater Dubai area as a regional business and
trading center expanded phenomenally during recent years. 
Dubai's Jebel Ali Port (the largest man-made harbor in the world)
and Free Zone now boasts more than 1000 international commercial
and industrial ventures including petroleum-related industries,
huge sugar and flour mills, warehouses, and many light
industries.  There are daily cargo charter flights from Dubai and
the other Northern emirates to many of the former Soviet Union
republics.  Dubai's international airport will double capacity to
12 million passengers per year by the year 2000, and the
increasing number (and size) of Dubai's trade exhibitions shows
no sign of slowing down.  In sum, the U.A.E. remains arguably the
most attractive, growing business center between the
Mediterranean and the Far East, and has direct trade links with a
region encompassing almost one quarter of the world's population. 


AGRICULTURAL EXECUTIVE SUMMARY:

High value U.S. food products with strong market potential in the
U.A.E. include frozen poultry parts, chilled and frozen beef,
fresh apples, pears and carrots, almonds, breakfast cereals,
honey, processed cheeses, condiments such as dressings, dips, hot
sauces and mayonnaise, snack foods, juices and processed fruits
and vegetables.  In addition, growth in the local food processing
industry is driving demand for semi-processed products such as
beverage bases, vegetable oils, raw peanuts and almonds,
specialty flours and a variety of other food ingredients.

Country Commercial Guides are available on the National Trade
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Stat-USA at 1-800-STAT-USA for more information.   To locate
Country Commercial Guides via the Internet, please use the
following World Wide Web address: WWW.STAT-USA.GOV.  CCGs can
also be ordered in hard copy or on diskette from the National
Information Service (NTIS) at 1-800-553-NTIS.

 
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