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Bahrain

4. Industrial Policies

Investment Incentives

The GOB offers a variety of incentives to attract FDI.  The Bahrain Logistics Zone, Bahrain Economic Development Board (EDB), Bahrain Development Bank (BDB), Bahrain International Investment Park (BIIP), and Tamkeen all offer incentives to encourage FDI.  Some examples of incentives include assistance in registering and opening business operations, financial grants, exemption from import duties on raw materials and equipment, and duty-free access to other GCC markets for products manufactured in Bahrain.

Foreign Trade Zones/Free Ports/Trade Facilitation

Khalifa bin Salman Port, Bahrain’s primary commercial seaport provides a free transit zone to facilitate the duty-free import of equipment and machinery.  The Government of Bahrain has developed two main industrial zones, one to the north of Sitra and the other in Hidd. The Hidd location, known as the Bahrain International Investment Park (BIIP), is adjacent to a logistics zone, known as the Bahrain Logistics Zone.  Foreign-owned firms have the same investment opportunities in these zones as Bahraini companies.

Bahrain’s Ministry of Industry, Commerce and Tourism (MoICT) operates the BIIP, a 2.5 million square-meter, tax-free zone located minutes from Bahrain’s main Khalifa bin Salman port.  Many U.S. companies operate out of this park. BIIP is most suited to manufacturing and services companies interested in exporting from Bahrain. The park offers manufacturing companies the ability to ship their products duty free to countries in the Greater Arab Free Trade Area.  BIIP has space available for potential investors, including some plots of vacant land designated for new construction, and some warehouse facilities for rental.

A 1999 law requires that investors in industrial or industry-related zones launch a project within one year from the date of receiving the land, and development must conform to the specifications, terms, and drawings submitted with the application.  Changes are not permitted without approval from the MoICT.

Performance and Data Localization Requirements

Companies in Bahrain are obliged to comply with so-called “Bahrainization” employment targets  , under which the Labour Market Regulatory Authority (LMRA) mandates that a certain percentage of each company’s employees are Bahraini.  Companies may contact LMRA to determine their Bahrainization rate, which differs based on the sector of the economy in which they work, or use a calculator available at http://lmra.bh/portal/en/page/show/193  .  The applicable Bahrainization rate  s are mandatory across the board in the company structure, applying equally to senior management and line workers.  Per Cabinet Resolution Number 27 of 2016, LMRA announced that companies that are unable to comply with the Bahrainization rates would only be eligible to apply for new work permits and sponsorship transfers by paying an additional annual fee of BD  500 (roughly USD 1,329) per non-Bahraini worker. LMRA may apply fines to companies that do not comply with Bahrainization requirements.

The GOB issued Law 1/2019 in March 2019 amending Article 14 of the Private Health Establishments Law, which gives priority to recruiting qualified Bahraini physicians, technicians, and nursing staff in private health establishments.

There are no excessively onerous visa, residence, work permit, or similar requirements inhibiting the mobility of foreign investors or their employees in Bahrain.  Americans and citizens of many other countries can obtain a two-week visa with relative ease upon arrival in Bahrain or online. Bahrain also offers a multiple-entry visa that lasts for five years, if required.

Bahrain has a liberal approach to foreign investment and actively seeks to attract foreign investors and businesses; no product localization is forced and foreign investors are not obliged to use domestic content in goods or technology.  There are no government-imposed conditions on permission to invest, including tariff and non-tariff barriers, on American investments.

There are no special performance requirements imposed on foreign investors.  The U.S.-Bahrain Bilateral Investment Treaty forbids mandated performance requirements as a condition for the establishment, acquisition, expansion, management, conduct, or operation of a covered investment.  Foreign and Bahraini-owned companies must meet the same requirements and comply with the same environmental, safety, health, and labor requirements. Officials at the Ministry of Labour and Social Development, LMRA and the MoICT supervise companies operating in Bahrain on a non-discriminatory basis.

The Central Bank of Bahrain regulates financial institutions and foreign exchange offices.  Foreign and locally owned companies must comply with the same rules, policies, and regulations.

There are no requirements for foreign IT providers to turn over source code and/or to provide access to surveillance.

Bahrain enacted Law No. 30 of 2018 with respect to Personal Data Protection on July 12, 2018. The nationwide Data Protection Law, which goes into force on August 1, 2019, promotes the efficient and secure processing of big data for commercial use and provides guidelines for the effective transfer of data across borders.

Kuwait

4. Industrial Policies

Investment Incentives

Incentives under the 2013 Foreign Direct Investment Law include tax benefits (15 percent corporate tax on foreign firms may be waived for up to 10 years), customs duties relief, land and real estate allocations, and permissions to recruit required foreign labor.

Other tax benefits exist.  For example, entities incorporated in the GCC that are 100 percent owned by GCC nationals are exempt from paying a tax on corporate profits.  Capital gains arising from trading in securities listed on Kuwait’s stock market are exempt from tax. Foreign principals selling goods through Kuwaiti distributors are not subject to tax.

Kuwait does not have personal income, property, inheritance, or sales taxes; the government is preparing legislation to implement a value added tax and certain excise taxes.

Foreign Trade Zones/Free Ports/Trade Facilitation

The Kuwait Free Trade Zone was established at Shuwaikh port in 1999.  The Council of Ministers approved legislation that would establish a new Free Trade Zone area as part of Kuwait’s Northern Gateway megaproject.  The legislation is pending in the National Assembly. Many restrictions normally faced by foreign firms, as well as corporate taxes, would not apply within the free trade zone.  The Kuwait Direct Investment Promotion Authority is planning to utilize existing legislation to develop two new free trade zones at Al-Abdali and Al-Nuwaiseeb. The Council of Ministers issued a resolution dissolving the Free Trade Zone status at Shuwaikh port because that area will be used for other purposes.

Performance and Data Localization Requirements

The government requires foreign firms to hire a percentage of Kuwaitis that varies according to sector.  The percentages are as follows:

  • banking: 70 percent
  • communications: 65 percent
  • investment and finance: 40 percent
  • petrochemicals and refining industries: 30 percent
  • insurance: 22 percent
  • real estate: 20 percent
  • air transportation, foreign exchange, cooperatives: 15 percent
  • manufacturing and agriculture: 3 percent.

Employers must obtain a no objection certificate for a work permit for foreign employees from the Public Authority for Manpower (PAM) prior to the employee’s arrival in the country.  Obtaining a no objection certificate may require submission of the employee’s criminal history and a completion of a health screening through a Kuwaiti Embassy or Consulate. Upon arrival, the employee must obtain a work permit from PAM and complete health and security screenings before receiving final status as a resident foreign worker from the Ministry of Interior.

Kuwait does not require that foreign companies store data locally, or that foreign investors use Kuwaiti domestic content when manufacturing goods locally.  Each company may determine whether and how it chooses to store data. Most governmental agencies follow International Organization for Standardization (ISO) certificate standards, which mandate the storage of data for five years.  Banks and other financial institutions are required by the Anti-Money Laundering/Combatting the Financing of Terrorism Law 106 of 2013 to maintain transactions data for five years.

Oman

4. Industrial Policies

Investment Incentives

Oman offers several incentives to attract foreign investors, though some of these incentives have been reduced in recent years.  Most industrial and commercial consumers now pay cost-reflective tariffs for utilities, and many tax exemptions for foreign investors were eliminated as part of Oman’s overhaul of its corporate tax law in 2017.  However, Ithraa (Oman’s investment promotion authority) still identifies an array of incentives used to encourage investment attraction, such as land at competitive lease rates in specific locations, and a competitive tax regime.  Oman taxes corporate earnings at 15 percent and has no personal income or capital gains tax. Additional incentives may be offered for certain types of companies established in recognized industrial estates or free zones. Other incentives may be offered by the government on a case-by-case basis.

The Omani government actively encourages foreign direct investment.  Accordingly, the government offers a number of incentives and Free Zones that contribute to an accommodating investment environment.

Foreign Trade Zones/Free Ports/Trade Facilitation

The government has established free trade zones to complement its port development projects in Duqm, Salalah, and Sohar.  These areas include strategically located ports and are well connected with modern infrastructure and facilities. An incentive package for investors includes a tax holiday, duty-free treatment of all imports and exports, and tax-free repatriation of profits.  Additional benefits include streamlined business registration, processing of labor and immigration permits, assistance with utility connections, and lower “Omanization” (employment quotas for Omani nationals) employment quota requirements. Foreign-owned firms have the same investment opportunities as Omani entities.

Performance and Data Localization Requirements

Since 1988, the GoO has had a labor market policy of Omanization, which includes employment quotas for Omani nationals.  These quota targets vary depending on the sector; they can be as low as 10 percent in the Special Economic Zone at Duqm (SEZAD) and as high as 90 percent, for example, in the banking sector.  Most government ministries have achieved Omanization rates at or near 100 percent.

Omanization targets are prevalent throughout the private sector but are enforced inconsistently.  In practice, each company in Oman is required to submit an Omanization plan to the Ministry of Manpower (MoM), which has the authority to reduce the requirements for some businesses and to adjust required Omanization percentages accordingly.  The MoM has recently adopted more heavy-handed tactics to force companies to increase their employment of Omanis.

Employers seeking to hire expatriate workers must seek a visa allotment from the MoM and Royal Oman Police (ROP).  Specific visas allocations are scrutinized using sometimes opaque criteria.  Foreign investors complain of the difficulty in hiring expatriates to the point that it frustrates or deters companies from investing in Oman.  Additionally, expatriate workers in Oman are required to leave Oman and remain outside the country for two years between changing employers (unless the initial employer agrees otherwise).  Persons may seek exemptions to this rule from the ROP on a case-by-case basis.

In January 2018, the MoM issued a decree that imposed a six-month ban on visas for expatriates in 87 job categories across 10 private sector industries.  The MoM extended the decree in February 2019, and will enforce it through July 2019. The decree does not apply to business owners registered with the Public Authority for Small and Medium Enterprise Development (Riyada) or to the owners insured by the Public Authority for Social Insurance.

Currently, Oman does not have any requirements for companies to turn over source code or to provide access to surveillance.  However, the Telecommunications Regulatory Authority (TRA) requires service providers to house servers in Oman if they are to provide services in Oman.  The TRA is the lead agency on establishing data quotas in Oman.

Qatar

4. Industrial Policies

Investment Incentives

Qatar does not impose a personal income tax and the new foreign investment law (Law 1/2019) offers a variety of other incentives to foreign investors, which may include the following:

  • Exemption from 10 percent corporate tax for a period of up to 10 years.
  • Allocation of land by way of a renewable rent for a period of up to 50 years.
  • Exemption from customs duties on the imports of necessary machinery and equipment.
  • Exemption from customs duties on imports of raw materials or half-manufactured goods necessary for production and not available in the local market, for industrial projects.

Some industrial projects can be established in designated industrial zones governed by the Qatar Free Zones Authority, and are offered the following incentives:

  • Exemption from 10 percent corporate tax for a period of up to 20 years.
  • Zero custom duties on imports.
  • Potential access to a USD 3 billion government-backed fund.

The Ministry of Energy Affairs determines the amount of foreign equity and the extent of incentives for industrial projects, as stipulated by Law 8/2018.

Foreign Trade Zones/Free Ports/Trade Facilitation

Qatar has several free zones and business facilitation options:

Qatar Financial Centre

Qatar Financial Centre (QFC) is an onshore business platform that allows international financial institutions and professional service companies to establish offices in Qatar with 100 percent foreign ownership and full repatriation of profits.  Locally-sourced profits are subject to a 10 percent corporate tax. The QFC has its own independent regulatory regime based on English common law. The QFC Regulatory Authority acts as the regulator for financial firms operating in the QFC. The QFC Regulatory Tribunal and Qatar International Court hear and adjudicate cases, though these bodies’ judgments are only of value if enforced by Qatari courts against persons and assets in Qatar.  Goldman Sachs International, Mastercard Gulf, Uber, and Oracle are among the companies registered with QFC.

Qatar Science and Technology Park

The Qatar Science and Technology Park (QSTP) is a hub designed to undertake research and development and facilitate the transfer of expertise and technology.  The hub offers grants and incubators to foreign and local innovators. Licensed foreign companies are permitted 100 percent ownership and full capital and income repatriation benefits.  Companies operating at the QSTP can import goods and services duty free and export goods produced in the park are tax-free. Firms at the park are also exempt from all taxes, including the 10 percent income tax.  The property of these businesses cannot be seized under any circumstance, but capital and other cash may be seized on the orders of a local court. Microsoft, ExxonMobil, GE, and ConocoPhillips are among QSTP member companies.

Free Zones

In 2018, the government created an independent Free Trade Zone Authority to oversee free zones in Qatar and offer opportunities and benefits to investors.  The Authority currently administers two such free trade zones: Ras Bufontas near the country’s international airport and Um Alhoul adjacent to the country’s largest commercial seaport.  Additionally, in 2011, Qatar established Manateq, a state-owned company affiliated with the Ministry of Commerce and Industry, to manage and develop economic zones. Manateq has oversight of one special economic zone (Al Karaana), four logistic parks (​Jery Al Samur, Al Wakra, Birkat Al Awamer and Aba Saleel​), four warehousing parks ​(Bu Fesseela, Bu Sulba, Umm Shaharaine 1 and Umm Shaharaine 2) and one industrial zone (Mesaieed). 

In the last two years, the Ministry of Commerce and Industry has also aimed to introduce a public-private partnership (PPP) law to further attract foreign investors.  The draft law is currently under judicial review. 

Performance and Data Localization Requirements

There are no laws that obligate the private sector to hire Qatari nationals, but the public sector and institutions working closely with the government on projects and joint ventures are required to hire Qatari nationals—these notably include energy companies operating in Qatar.  Nonetheless, this manpower localization policy (known as “Qatarization”) in the public sector is a main focus of the country’s National Vision 2030 and foreign investors wishing to operate fully-owned companies will be required to submit a “Qatarization” plan. Employers are allocated visa slots for the hiring of specific nationalities and such positions are non-transferable without approval of the Ministry of Administrative Development, Labor, and Social Affairs.

While Qatar does not follow a forced localization policy, when competing for government contracts, preferential treatment is given to suppliers that use local content in bids.  Goods produced with Qatari content are also given a 10 percent price preference. As a rule, participation in government tenders with a value of QAR 5,000,000 or less (equivalent to USD 1,373,626) are confined to local contractors, suppliers, and merchants registered by the Qatar Chamber of Commerce, and tenders with a value of more than this amount do not require any local commercial registration to participate, but in practice certain exceptions exist. 

In February 2019, national oil company Qatar Petroleum announced a localization initiative, Tawteen, which, among other things, will require all suppliers for Qatar Petroleum and its subsidiaries, as well as bidders for select contracts, to be assessed by a third-party auditor to determine their In-Country Value (ICV) score.  Qatar Petroleum and its subsidiary companies will assess the ICV score in addition to technical and commercial criteria when evaluating bidders. The formula for calculating a company’s ICV score may be found here: https://www.tawteen.com.qa/In-Country-Value-Policy/ICV-Formula-Calculation  

Performance requirements for foreign investment in Qatar do not exist.  Disclosure of financial and employment data is required, but proprietary information is not.

There are no known formalized requirements for foreign IT providers to turn over source code or provide access to surveillance.  Information and communications technology is regulated by Qatar’s Communications Regulatory Authority, established as an independent body by Amiri Decree 42/2014, under the Ministry of Transport and Communications.  Qatar is the first Arab Gulf nation to enact a Data Protection Law 13/2016, which obliges companies to comply with restrictions relating to the collection, disclosure, and safekeeping of personal data. The regulator responsible for enforcing the Data Protection Law is the Ministry of Transport and Communications.

Saudi Arabia

4. Industrial Policies

Investment Incentives

SAGIA advertises a number of financial advantages for foreigners looking to invest in the Kingdom, including the lack of personal income taxes and a corporate tax rate of 20 percent on foreign companies’ profits.  SAGIA also lists various SAG-sponsored, regional, and international financial programs to which foreign investors have access, such as the Arab Fund for Economic and Social Development, the Arab Trade Financing Program, and the Islamic Development Bank.  

The Saudi Industrial Development Fund (SIDF), a government financial institution established in 1974, supports private-sector industrial investments by providing medium- and long-term loans for new factories and for projects to expand, upgrade, and modernize existing manufacturing facilities.  The SIDF offers loans of 50 percent to 75 percent of a project’s value, depending on the project’s location. Foreign investors that set up manufacturing facilities in developed areas (Riyadh, Jeddah, Dammam, Jubail, Mecca, Yanbu, and Ras Al-Khair), for example, can receive a 15-year loan for up to 50 percent of a project’s value; investors in the Kingdom’s least developed areas can receive a 20-year loan for up to 75 percent of the project’s value.  The SIDF also offers consultancy services for local industrial projects in the administrative, financial, technical and marketing fields. (The SIDF’s website is at https://www.sidf.gov.sa/en/Pages/default.aspx  .)  

The SAG offers several incentive programs to promote employment of Saudi nationals.  The Saudi Human Resources Development Fund (HRDF) (https://www.hrdf.org.sa/), for example, will pay 30 percent of a Saudi national’s wages for the first year of work, with a wage subsidy of 20 percent and 10 percent for the second and third year of employment, respectively (subject to certain limits and caps).   

American and other foreign firms are able to participate in SAG-financed and/or -subsidized research-and-development programs.  Many of these programs are run though the King Abdulaziz City for Science and Technology (KACST), which funds many of the Kingdom’s R&D programs.   

Foreign Trade Zones/Free Ports/Trade Facilitation

Saudi Arabia does not operate free trade zones or free ports.  However, as part of its Vision 2030 program, the SAG has announced it will create special zones with special regulations to encourage investment and diversify government revenues.  The SAG is discussing the establishment of special regulatory zones in certain areas, including at the NEOM giga-project, and the King Abdullah Financial District project in Riyadh.  

Saudi Arabia has established a network of “economic cities” as part of the country’s efforts to diversify away from oil.  Overseen by SAGIA, these four economic cities aim to provide a variety of advantages to companies that choose to locate their operations within the city limits, including in matters of logistics and ease of doing business.  The four economic cities are: King Abdullah Economic City near Jeddah, Prince AbdulAziz Bin Mousaed Economic City in north-central Saudi Arabia, Knowledge Economic City in Medina, and Jazan Economic City near the southwest border with Yemen.  The cities are in various states of development, and their future development potential is unclear, given competing Vision 2030 economic development projects.

The Saudi Industrial Property Authority (MODON) oversees the development of 35 industrial cities, including some still under development.  MODON offers incentives for commercial investment in these cities, including competitive rents for industrial land, government-sponsored financing, export guarantees, and certain customs exemptions.  (MODON’s website is at https://www.modon.gov.sa/en/Pages/default.aspx  .)

The Royal Commission for Jubail and Yanbu (RCJY) was formed in 1975 and established the industrial cities of Jubail, located in eastern Saudi Arabia on the Gulf coast, and Yanbu, located in north western Saudi Arabia on the Red Sea coast.  A significant portion of Saudi Arabia’s refining, petrochemical, and other heavy industries are located in the Jubail and Yanbu industrial cities. The RCJY’s mission is to plan, promote, develop, and manage petrochemicals and energy intensive industrial cities.  In connection with this mission, RCJY promotes investment opportunities in the two cities and can offer a variety of incentives, including tax holidays, customs exemptions, low cost loans, and favorable land and utility rates. More recently, the RCJY has assumed responsibility for managing the Ras Al Khair City for Mining Industries (2009) and the Jazan City for Primary and Downstream Industries (2015).  (The RCJY’s website is at https://www.rcjy.gov.sa).

Performance and Data Localization Requirements

The government does not impose systematic conditions on foreign investment.  For example, there are no requirements to locate in a specific geographic area (except for some restrictions on the distribution of retail outlets and the location of industrial activities).  Investors are not required to export a certain percentage of output. There is no requirement that the share of foreign equity be reduced over time. Investors are not required to disclose proprietary information to the SAG as part of the regulatory approval process, except where issues of health and safety are concerned.    

Although investors have not been required heretofore to purchase from local sources, the situation is changing.  In line with its bid to diversify the economy and provide more private sector jobs for Saudi nationals, the SAG has embarked upon a broad effort to source goods and services domestically and is seeking commitments from investors to do so.  In 2017, the Council of Economic and Development Affairs (CEDA) established the Local Content and Private Sector Development Unit (NAMAA in Arabic) to promote local content and improve the balance of payments. NAMAA is responsible for monitoring and implementing regulations, suggesting new policies, and coordinating with the private sector on all local content matters.  

Government-controlled enterprises are also increasingly introducing local content requirements for foreign firms.  Aramco’s “In-Kingdom Total Value Added” program, for example, strongly encourages the purchase of goods and services from a local supplier base and aims to double Aramco’s percentage of locally-manufactured energy-related goods and services to 70 percent by 2021.  

In the defense sector, Saudi Arabia’s military is in the process of reforming its procurement processes and policies to incorporate new ambitious goals of Saudi employment and localized production.  The SAG has shifted over the last two years away from offsets in favor of “localization” of purchases of goods and services and “Saudization” of the labor force. Previously, the government required offsets in investments equivalent to up to 40 percent of a program’s value for defense contracts, depending on the value of the contract.  The SAG is currently mandating increasingly strict localization requirements for government contracts in the defense sector. The SAG’s Vision 2030 program calls for 50 percent of defense materials to be produced and procured locally by 2030, and simultaneously seeks comparable increases in the number of Saudis employed in this sector.

The government encourages recruitment of Saudi employees through a series of incentives (see section 11 on “Labor Policies” for details of the “Saudization” program) and limits placed on the number of visas for foreign workers available to companies.  The Saudi electronic visitor visa system defaults to five-year visas for all U.S. citizen applicants. “Business visas” are routinely issued to U.S. visitors who do not have an invitation letter from a Saudi company; the visa applicant must provide evidence that he or she is engaged in legitimate commercial activity.  “Commercial visas” are issued by invitation from Saudi companies to applicants who have a specific reason to visit a Saudi company.

In the fall of 2016, the SAG implemented a series of significant visitor fee increases for expatriates whose countries do not have reciprocity agreements with Saudi Arabia, doubling the cost of a single-entry business visit visa to USD 533.  (U.S. citizens are exempt from such increases on the basis of reciprocity.) The SAG also imposed higher exit and reentry visa fees for all foreign workers residing in the Kingdom, including U.S. citizens. Furthermore, in January 2018, the SAG implemented new fees for expatriate employers ranging between USD 80 and USD 107 per employee per month and increased levies on expatriates with dependents to a USD 54 monthly fee for each dependent (see section 11 on “Labor Policies”).  In January 2019, fees on expatriate employees increased to between USD 133 to USD 160 per month, and levies on expatriate dependents increased to USD 80 per month. These fees are scheduled to increase again in 2020, but no additional increases are planned at this time.

Data Treatment

There are no requirements for foreign IT providers to turn over source code or provide access to encryption.  Other than a requirement to retain records locally for ten years for tax purposes, there is no requirement regarding data storage or access to surveillance.   

United Arab Emirates

4. Industrial Policies

Investment Incentives

All free trade zones provide incentives to foreign investors.  Outside the free trade zones, the UAE provides no incentives, although the ability to purchase property as freehold in certain favored projects could be considered an incentive to attract foreign investment.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are numerous free trade zones throughout the UAE.  Foreign companies generally enjoy the same investment opportunities within those zones as Emirati citizens.  The chief attraction of free trade zones is that foreigners may own up to 100 percent of the equity in a free trade zone enterprise.  All free trade zones provide 100 percent import and export tax exemption, 100 percent exemption from commercial levies, 100 percent repatriation of capital and profits, multi-year leases, easy access to ports and airports, buildings for lease, energy connections (often at subsidized rates), and assistance in labor recruitment.  In addition, free trade zone authorities provide significant support services, such as sponsorship, worker housing, dining facilities, recruitment, and physical security.

Free trade zones have their own independent authority with responsibility for licensing and helping companies establish their businesses.  Investors can register new companies in a free trade zone, or license branch or representative offices. Free trade zones have limited liability and are governed by special laws and regulations.  Companies in free trade zones seeking to operate within the UAE may be governed by the new Commercial Companies Law, if the laws of the relevant free trade zone permit companies to operate outside of the free zones.

Performance and Data Localization Requirements

The Emiratization Initiative is a federal incentive program that aims to increase the number of Emirati citizens employed within the private sector.  Exact requirements vary by industry, but the Vision 2021 national strategic plan aims to increase the percentage of Emiratis working in the private sector from five percent in 2014 to eight percent by 2021.  Most Emirati citizens are employed by the government or one of its many government-related entities (GREs). A guest worker system generally guarantees transportation back to country of origin at conclusion of employment.  There have been no reports of excessively onerous visa, residence, work permit, or similar requirements inhibiting mobility of foreign investors and their employees. There are government and government authority-imposed conditions on permission to invest, in the form of the 49 percent limitation of ownership/control by foreign individuals or corporations.  The UAE does not force foreign investors to use domestic content in goods or technology or compel foreign IT providers to turn over source code.

All foreign defense contractors with over USD 10 million in contract value over a five-year period must participate in the Tawazun Economic Program, previously known as the UAE Offset Program.  This program also requires defense contractors that are awarded contracts valued at more than USD 10 million to establish commercially viable joint ventures with local business partners, which would be projected to yield profits equivalent to 60 percent of the contract value within a specified period, usually seven years.

In February 2018, the Abu Dhabi National Oil Company piloted a new In-Country Value (ICV) strategy, which gives preference in awarding contracts to foreign companies that use local content and employ Emirati citizens.  UAE government officials have indicated plans to expand the ICV program to other sectors of the economy, and to other emirates, in the coming years.

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