US embassy cable - 05ABUDHABI303

UNCLAS ABU DHABI 000303 
 
SIPDIS 
 
DEPT PASS TO USTR 
GENEVA FOR USTR ALICIAGENDIGE 
 
E.O. 12958: N/A 
TAGS: ETRD, WTO, TC 
SUBJECT: WTO SERVICES NEGOTIATIONS: REQUEST FOR COMMENTS - 
UAE 
 
Ref: 04 State 270998 
 
1. The UAE is an attractive place for U.S. businesses, but 
the legal framework here favors local over foreign 
investors.  Post assesses that the overall level of openness 
for services in the UAE is medium.  In some cases, we have 
assessed different sectors at different levels of openness. 
 
 
2. Begin list: 
 
--Legal services - 3 
--Accounting, auditing, and bookkeeping services - 4 
Taxation services - 3-4 (medium-high--No local taxes.  Tax 
advice for expatriates and UAE nationals investing in other 
markets is provided by services operating in those markets.) 
--Architectural services - 1 
--Engineering and integrated engineering services - 1 
--Urban planning and landscape architecture services - 1-2 
(with the construction boom going on in the UAE, there is a 
large potential market in both urban planning and in 
landscape architecture.  Actual demand from U.S. firms is 
more limited.) 
--Computer and related services -4 
--Research and development services - 5 
--Real estate services - 4 (low) 
--Rental/Leasing Services - 5 (low) 
--Advertising services - 3 
--Market research and public opinion polling services - 4 
--Management consulting services - 2 (medium-high) 
--Technical testing and analysis services (including energy) 
- 2 
--Services incidental to agriculture, hunting and forestry 
and fishing - 5 
--Services incidental to mining - 5 
--Energy services - 1 (medium-high--Energy resources are 
owned by the individual emirates.  Emirates have allowed 
partial ownership of both upstream and downstream oil and 
gas facilities.  The Emirate of Abu Dhabi has begun to 
privatize its power generation capacity and has announced 
its intention to privatize power distribution.) 
--Placement and supply services of personnel - 4-5 
--Investigation and security - 1 
--Related scientific and technical consulting services -4 
--Maintenance and repair of equipment - 2-3 (especially in 
energy sector and in the high tech defense sector.) 
--Building cleaning services - 5 
--Photographic Services - 5 
--Packaging services - 5 
--Printing, Publishing - 5 
--Convention services - 2 (low) 
--Courier Services -- 2 
--Telecommunication services - 3 (low-- The UAE is in the 
process of breaking up its monopoly telecommunications 
service provider Etisalat, but new entrants to the market 
are likely to need a local partner.  There is a market for 
providing services to Etisalat.) 
--Audiovisual services - 5 
--Construction and related engineering 1 (medium-high-- 
There is currently a construction boom in the UAE, 
especially in the emirate of Dubai, but increasingly in the 
emirate of Abu Dhabi.  There is a great deal of interest and 
competition from international construction and engineering 
firms in this sector.) 
--Distribution Services - 3 
--Educational services - 2 
--Environmental services -1 
--Insurance services - 4 (low-medium) 
--Banking and other financial services - 2 (medium -- The 
Abu Dhabi Investment Fund, which manages the Emirate of Abu 
Dhabi's overseas assets, contracts with private fund 
managers and banks to manage part of its overseas assets.) 
--Tourism and travel related services - 2-3 (There are 
opportunities to manage hotels in the UAE.  The UAE 
Commercial Companies Law requires joint venture partnerships 
to be 51% Emirati owned.) 
--Recreation and sporting services - 3 
--Medical services - 1 (medium-high -- The UAE hires a large 
number of foreign medical professionals.  To set up a 
practice, a foreign medical professional needs a local 
partner.  The emirate of Dubai, however, is setting up Dubai 
Healthcare City, which will be considered a "free zone" with 
respect to ownership requirements.  In addition, several 
U.S. hospitals are providing tele-medicine as well as 
consultation services in the UAE. )