American Business Councilof Dubai amp the Northern EmiratesChapter Us Chamber of Commerce

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Introductory ote from the ABC Board of Directors

In 2012 the ABC Board of Director increa ingly focused on meeting the demand forpure busine programming such a knowledge haring industry working groups andadvocacy The centerpiece of those effort was the IDEAS Business Forum held in ovember2012

Attended by over 100 enior level ABC member and guests the Forum consisted oftwo parts the first-half of the program centered around a CEO panel discu sion on thepaneli t experience doing busine in the UAE and the region the second half of theprogram in olved a break out into indu try specific groups for collaborative i sue-spottingand brain torming for olution The industrie repre ented were Technology HealthEducation Oil amp Gas Profe sional Services Banking Transport Infrastructure andLogi tics and Small amp Medium Enterpri e

A summary of the results of the Forum are presented herein The results are presentedin a ummary format culled from detailed report prepared by volunteer scribes from HultInternational Bu ine School If you would like to ee more information on your industryplea e do not he itate to contact the ABC Administration Based on the succe and positivefeedback of the Forum we expect the next Bu ine s Forum in ovember 2013 to be biggerbetter and the re ult quick and practical

The Board would like to thank the ABC Administration for its hard work and extend apecial thank you to those who contributed their time to the Forum and preparation of thisummary Merwyn Strate (Hult International Business School) Mac McClelland (Center

Hou e) Frank Kemnetz (ExxonMobil) and John Podgore (Dechert LLP) The ABC dependson it member if you would like to a i t with any of the sugge tions in thi Report or withthe 2013 Forum plea e contact u at directorabcdubaicom

Sincerely

ABC Board of Directors

POBox 37068 Dubai United Arab EmiratesTel +97143791414 Fax +97143791515 email infoabcdubaicom webwwwabcdubaicom

PRESIDENTS CLUBAmerican Hospital Dubai bull American University in Dubai bull Coca Cola bull DynCorp bull ExxonMobil bull FedEx

Fulbright amp Jaworski bull GE bull GM bull HP bull mM bull Pepsico bull UPS bull Visa bull Yahoo Maktoob

VICE PRESIDENTS CLUBAAe lnfiniti bull Aetna International bull Baker Botts bull Boeing bull MasterCard

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

Key Issues Recommended ActionsGeneral Issues(Across all Sectors) for Discussionwith UAEandor Dubai Government

1 Inconsistency in lawsregulations and bull Through ABC member outreach prioritizeprocedures between the emirates and areas where inconsistencies are mostacross free zones is an obstacle to doing problematic consider advocacy focused onbusiness in UAE - increases complexity those areascost and risk bull Meet with Dubai Chamber to seek advice

on how to launch a UAE regulatoryFor example harmonization efforta Multiple agents required - Emphasize opportunity to incorporateb Employee mobility constrained global best practicec Incompatible import duties bull Meet with Dubai government to suggest

regulatory harmonization for free zones2 Certain industries (and consumers) could bull Through outreach to ABC members

benefit from improved standards andor determine interest in developingprovidinglicensing across UAE draft standards

bull If sufficient interest test receptivity ofFor example DubaiUAE government before undertakinga Building construction standards similar a significant effort

to US bull If there is a will and a way form taskb Simple consistent licensing of groups to draft specific recommendations

professional service providers bull Assist in the organization of industryassociations

3 Certain UAE Labor Law provisions and bull Seek changeclarification in UAE Labor Lawrelated practices create unnecessary to exempt professional employees frombusiness risks overtime provisions

bull Seek modification of standard employmentFor example contracts (for professional workers) toa Unclear whether overtime enable additionschanges in compensation

requirements apply to professionals - components while complying with LaborI doctors lawyers engineers etc Law requirements

b Standard form employment contractlimits flexibility in compensation - notwell suited to expatriates

4 Inadequate UAE lawsenforcement bull Meet with Ministry of Health to discussincrease risk for businesses and discourage ways to improve IP protection fordoing business in UAE particularly with pharmaceuticals (focus area)respect to bull Seek ABC member feedback on whether IPa Intellectual property protection protection is an issue in other sectorsb Bankruptcy law - protection of bull Meet with Ministry of Finance to provide

investors input on implementation of newbankruptcy law

CPCoTL 156 741 1

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)Key Issues Recommended Actions

General Issues(Across all Sectors) for Discussionwith UAEandor Dubai Government5 US investment in UAE constrained by bull Identifyprioritize areas where there is

a Requirement for majority local significant interest by potential USownership investors but local laws constrain

b Some sectors not open to investmentprivateforeign investment (eg Dubai bull Meet initially with Dubai Chamber to seekpowerwater telecommunications) guidance on how best to advocate for

change6 The legal system in UAE and the emirates bull Establish an ABC Legal Affairs Committee

is rapidly evolving which creates (accomplished) under chairmanship of VPuncertainty and risk for companies doing Legal Affairs to monitor developmentsbusiness here issue alerts to members and provide timely

input on draft lawsregulations asappropriate

bull Invite participation of US law firms thatare already doing this for clientspotentialclients

7 Recruitment of high quality UAE National bull Arrange a conferenceworkshop for ABCemployees is challenging members with key government officials to

discuss issues and opportunities related toEmiratization

8 Bureaucracy is a deterrent to establishing bull Use feedback to identify specific problema business in UAE - particularly for SMEs areas meet with appropriate governmentwhich is a key sector for growth officials

bull Establish ABC referral service to directpeople considering doing business in UAEto useful resources (websites consultantsetc)

9 Tenders often awarded based on lowest bull Draft simple advocacy brief on benefits ofcost vs best value (quality service etc) incorporating maximum value intowhich favors Asian over US companies selection process

bull Share brief with USGofficials and ABCmembers

21PagCPINTL 156~~41 I

Determine practice applied in US (asbenchmark) and possibly Abu Dhabi todetermine how to expedite withoutcompromising securityMeet with appropriate Dubai governmentofficials) to suggest change in procedure

bull

bull

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)Key Issues Recommended Actions

Specific Sector Issues for Discussion with UAE andor Dubai Government

1 Medical UAE treats medical bull Meet with Ministry of Health to explainmalpractice as a crime and arrests can concern seek additional information andbe made prior to any investigation explore the possibility of changing the lawfear of an unfounded malpracticecomplaint discourages doctors frompracticing in UAE

2 Airfreight Security screening (x-ray)procedures delay shipments (Dubai)

1 Foreign Account Tax Compliance Act(FATCA) could have a significantnegative impact on willingness of UAEbanks to do business with UScompaniescitizensa Unclear howwhether UAE Central

Bank will comply or encouragecompliance reporting

b Banks might elect not to risk doingbusiness with UScompaniesindividuals due tosevere penalties

c Potential for damage to bilateralrelations

2 Obtaining timely US visas for UAEstudents planning to study in the UScontinues to be a concern

bull

bullI bull

bull

bull

Seek further input from members to captureconcerns and negative impact of FATCAUpdate issue brief accordinglyMake this issue a priority in ABC amp MECACCdoorknock campaigns (planned)

Discuss with US Mission whether any furtheractions can be taken to facilitate andorexpedite obtaining visas for studentsInvolve US educational institutions in UAE in avisa facilitation process if this is determined tobe helpfulworthwhile

3 I P a g CPlNTL 15677411

Through ABC form exclusive group of USlicensed healthcare providers andadvertisepromote qualifications capabilitiespossibly through ABC or other website

bull Consider approaching key hospitals toencourage recruitment of US trainedcertifiednurses

bull If of interest to ABC members develop bestpractice communication protocol for doctorsto use in communicating with local pharmacies

Poor awareness of medical facilities inUAE and lack of trust prompt manypatients to seek health care abroad

2 Expertise of local nurses is belowstandard of US

3 Poor communication betweenphysicians and pharmacies

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)

4 Potential to enhance opportunities foreducation abroad (US to UAE and viceversa) including internships

5 Need for a forum for sharing ideas andbest practice among educators inDubaiUAE

6 Retention of academic staff is an issue

7 SMEs face specific challenges in doingbusiness in UAE includinga Demanding customers with high

expectationsb Complexitycost for PROactivities -

disadvantage relative to largercompanies

c Lack of human resources

bull Investigate level of interest among current andpotential ABC members

bull Establish an Education Task Force under ABCumbrella include outreach to UAE educationalinstitutions (planned)

bull Through Education Task Force identify andaddress common issues in UAE educationsector

bull Determine interest among ABC members inestablishing an SME Forum to

Share best practice - doing business in UAEIdentify issues for ABC advocacy withUAEDubai governmentConsider forming a network for sharedpersonnelservices (eg PROactivities)

41PageCPINTL 156 741 1

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)Key Issues Recommended Actions

General Issues(Across all Sectors) for Discussionwith UAEandor Dubai Government5 US investment in UAE constrained by bull Identifyprioritize areas where there is

a Requirement for majority local significant interest by potential USownership investors but local laws constrain

b Some sectors not open to investmentprivateforeign investment (eg Dubai bull Meet initially with Dubai Chamber to seekpowerwater telecommunications) guidance on how best to advocate for

change6 The legal system in UAE and the emirates bull Establish an ABC Legal Affairs Committee

is rapidly evolving which creates (accomplished) under chairmanship of VPuncertainty and risk for companies doing Legal Affairs to monitor developmentsbusiness here issue alerts to members and provide timely

input on draft lawsregulations asappropriate

bull Invite participation of US law firms thatare already doing this for clientspotentialclients

7 Recruitment of high quality UAE National bull Arrange a conferenceworkshop for ABCemployees is challenging members with key government officials to

discuss issues and opportunities related toEmiratization

8 Bureaucracy is a deterrent to establishing bull Use feedback to identify specific problema business in UAE - particularly for SMEs areas meet with appropriate governmentwhich is a key sector for growth officials

bull Establish ABC referral service to directpeople considering doing business in UAEto useful resources (websites consultantsetc)

9 Tenders often awarded based on lowest bull Draft simple advocacy brief on benefits ofcost vs best value (quality service etc) incorporating maximum value intowhich favors Asian over US companies selection process

bull Share brief with USGofficials and ABCmembers

21PagCPINTL 156~~41 I

Determine practice applied in US (asbenchmark) and possibly Abu Dhabi todetermine how to expedite withoutcompromising securityMeet with appropriate Dubai governmentofficials) to suggest change in procedure

bull

bull

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)Key Issues Recommended Actions

Specific Sector Issues for Discussion with UAE andor Dubai Government

1 Medical UAE treats medical bull Meet with Ministry of Health to explainmalpractice as a crime and arrests can concern seek additional information andbe made prior to any investigation explore the possibility of changing the lawfear of an unfounded malpracticecomplaint discourages doctors frompracticing in UAE

2 Airfreight Security screening (x-ray)procedures delay shipments (Dubai)

1 Foreign Account Tax Compliance Act(FATCA) could have a significantnegative impact on willingness of UAEbanks to do business with UScompaniescitizensa Unclear howwhether UAE Central

Bank will comply or encouragecompliance reporting

b Banks might elect not to risk doingbusiness with UScompaniesindividuals due tosevere penalties

c Potential for damage to bilateralrelations

2 Obtaining timely US visas for UAEstudents planning to study in the UScontinues to be a concern

bull

bullI bull

bull

bull

Seek further input from members to captureconcerns and negative impact of FATCAUpdate issue brief accordinglyMake this issue a priority in ABC amp MECACCdoorknock campaigns (planned)

Discuss with US Mission whether any furtheractions can be taken to facilitate andorexpedite obtaining visas for studentsInvolve US educational institutions in UAE in avisa facilitation process if this is determined tobe helpfulworthwhile

3 I P a g CPlNTL 15677411

Through ABC form exclusive group of USlicensed healthcare providers andadvertisepromote qualifications capabilitiespossibly through ABC or other website

bull Consider approaching key hospitals toencourage recruitment of US trainedcertifiednurses

bull If of interest to ABC members develop bestpractice communication protocol for doctorsto use in communicating with local pharmacies

Poor awareness of medical facilities inUAE and lack of trust prompt manypatients to seek health care abroad

2 Expertise of local nurses is belowstandard of US

3 Poor communication betweenphysicians and pharmacies

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)

4 Potential to enhance opportunities foreducation abroad (US to UAE and viceversa) including internships

5 Need for a forum for sharing ideas andbest practice among educators inDubaiUAE

6 Retention of academic staff is an issue

7 SMEs face specific challenges in doingbusiness in UAE includinga Demanding customers with high

expectationsb Complexitycost for PROactivities -

disadvantage relative to largercompanies

c Lack of human resources

bull Investigate level of interest among current andpotential ABC members

bull Establish an Education Task Force under ABCumbrella include outreach to UAE educationalinstitutions (planned)

bull Through Education Task Force identify andaddress common issues in UAE educationsector

bull Determine interest among ABC members inestablishing an SME Forum to

Share best practice - doing business in UAEIdentify issues for ABC advocacy withUAEDubai governmentConsider forming a network for sharedpersonnelservices (eg PROactivities)

41PageCPINTL 156 741 1

Determine practice applied in US (asbenchmark) and possibly Abu Dhabi todetermine how to expedite withoutcompromising securityMeet with appropriate Dubai governmentofficials) to suggest change in procedure

bull

bull

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)Key Issues Recommended Actions

Specific Sector Issues for Discussion with UAE andor Dubai Government

1 Medical UAE treats medical bull Meet with Ministry of Health to explainmalpractice as a crime and arrests can concern seek additional information andbe made prior to any investigation explore the possibility of changing the lawfear of an unfounded malpracticecomplaint discourages doctors frompracticing in UAE

2 Airfreight Security screening (x-ray)procedures delay shipments (Dubai)

1 Foreign Account Tax Compliance Act(FATCA) could have a significantnegative impact on willingness of UAEbanks to do business with UScompaniescitizensa Unclear howwhether UAE Central

Bank will comply or encouragecompliance reporting

b Banks might elect not to risk doingbusiness with UScompaniesindividuals due tosevere penalties

c Potential for damage to bilateralrelations

2 Obtaining timely US visas for UAEstudents planning to study in the UScontinues to be a concern

bull

bullI bull

bull

bull

Seek further input from members to captureconcerns and negative impact of FATCAUpdate issue brief accordinglyMake this issue a priority in ABC amp MECACCdoorknock campaigns (planned)

Discuss with US Mission whether any furtheractions can be taken to facilitate andorexpedite obtaining visas for studentsInvolve US educational institutions in UAE in avisa facilitation process if this is determined tobe helpfulworthwhile

3 I P a g CPlNTL 15677411

Through ABC form exclusive group of USlicensed healthcare providers andadvertisepromote qualifications capabilitiespossibly through ABC or other website

bull Consider approaching key hospitals toencourage recruitment of US trainedcertifiednurses

bull If of interest to ABC members develop bestpractice communication protocol for doctorsto use in communicating with local pharmacies

Poor awareness of medical facilities inUAE and lack of trust prompt manypatients to seek health care abroad

2 Expertise of local nurses is belowstandard of US

3 Poor communication betweenphysicians and pharmacies

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)

4 Potential to enhance opportunities foreducation abroad (US to UAE and viceversa) including internships

5 Need for a forum for sharing ideas andbest practice among educators inDubaiUAE

6 Retention of academic staff is an issue

7 SMEs face specific challenges in doingbusiness in UAE includinga Demanding customers with high

expectationsb Complexitycost for PROactivities -

disadvantage relative to largercompanies

c Lack of human resources

bull Investigate level of interest among current andpotential ABC members

bull Establish an Education Task Force under ABCumbrella include outreach to UAE educationalinstitutions (planned)

bull Through Education Task Force identify andaddress common issues in UAE educationsector

bull Determine interest among ABC members inestablishing an SME Forum to

Share best practice - doing business in UAEIdentify issues for ABC advocacy withUAEDubai governmentConsider forming a network for sharedpersonnelservices (eg PROactivities)

41PageCPINTL 156 741 1

Through ABC form exclusive group of USlicensed healthcare providers andadvertisepromote qualifications capabilitiespossibly through ABC or other website

bull Consider approaching key hospitals toencourage recruitment of US trainedcertifiednurses

bull If of interest to ABC members develop bestpractice communication protocol for doctorsto use in communicating with local pharmacies

Poor awareness of medical facilities inUAE and lack of trust prompt manypatients to seek health care abroad

2 Expertise of local nurses is belowstandard of US

3 Poor communication betweenphysicians and pharmacies

ABC Ideas Forum - 2012Summary of Key Issues and Recommended Actions

(continued)

4 Potential to enhance opportunities foreducation abroad (US to UAE and viceversa) including internships

5 Need for a forum for sharing ideas andbest practice among educators inDubaiUAE

6 Retention of academic staff is an issue

7 SMEs face specific challenges in doingbusiness in UAE includinga Demanding customers with high

expectationsb Complexitycost for PROactivities -

disadvantage relative to largercompanies

c Lack of human resources

bull Investigate level of interest among current andpotential ABC members

bull Establish an Education Task Force under ABCumbrella include outreach to UAE educationalinstitutions (planned)

bull Through Education Task Force identify andaddress common issues in UAE educationsector

bull Determine interest among ABC members inestablishing an SME Forum to

Share best practice - doing business in UAEIdentify issues for ABC advocacy withUAEDubai governmentConsider forming a network for sharedpersonnelservices (eg PROactivities)

41PageCPINTL 156 741 1