Essay on "UAE Doing Business Internationally Requires"

Essay 2 pages (796 words) Sources: 4

[EXCERPT] . . . .

The legal framework is based on a combination of civil law principles and shari'a. Civil law derives from Western European tradition -- not British -- and shari'a law contributes guiding principles as well as specific rules to the legal framework of the UAE (Ibid). For investors from areas unfamiliar with either of these legal systems, local assistance should be considered mandatory. Federal codes of law have expanded significant in recent decades as the UAE has matured as a nation, and govern issues such as civil and commercial procedure, intellectual property, industrial law, banking and employment law. Local laws at the emirate level tend to focus on administrative manners, but of course these can also affect a foreign investor (Ibid). The federal government has authority over the legal systems of five emirates, while Dubai and Ras al Khaimah have their own judicial systems. Some free trade zones, such as the Dubai International Financial Centre, have their own judicial and legal systems -- at DIFC the British system is used (Strong & Himber, 2009).

Multinational companies seeking to fit into this environment need to achieve a high level of knowledge and competence of these regulatory and legal frameworks. Typically, this involves working with a local partner who has experience in navigating these issues. It is also possible that local law firms and consultants can contribute to a foreign firm's knowledge base of these issues. Many emirates have government agencies in order to help foreign firms succeed in their investments in the Emirates, by matching them with local partners or providing advice on the political and legal environments to allow for a smoother transition.

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