AnotherWorld

Can someone explain to me how the distribution of oil wealth took place in the UAE making many Emirati's filthy rich where only a few are still very very poor? Im talking about how they went from a tent lifestyle to one of obscene cashflow within a short space of time.

MataHari

well...there certainly is something wrong cause I just went to Uptown and there wasn't any money in any of the ATMs...

MrsHaps

Really......? too many fricken holidays!

Inselaffen

just typical crap service from many of Dubai's banks.

Tiger989

You got the original Emaratis and the non original.
Rich Emiratis from oil are generally from Al-Ain. Some of the big families are Suwaidi, Mansouri. You then got the yemani and iranian origins, they are a bit poorer. As even between emaratis there is a kind of distinct from what family they came from and what origin etc...

Oil was distributed to Alnahyan family only, when the oil in UAE been developed, those original families grew with it, from there local buisness.

Hope that helps

AnotherWorld

Yeah thanks.

So mainly these families obtained wealth through business which were owned under their name?

Tiger989

Mostly yes, As they where the original emiratis and they where the closest to Al Nahyan family at the time

Cry haddock

Not based on intimate knwoledge of the situation, but it seems to me that the agency law helped the familes with connections tie up all the lucrative import contracts, hence they rose with the tide as those with the oil money spread it around and everyone spent more.
CH

bimcnorth

Correct..It was a typical case of hydraulical feudalism we migh say.

The money reached the Al-Nahyans who gave their allies and relatives certain franchises. Like the right to import certain things.

As the oil money became a flood the whole economy expanded to the point of UAE needing to import loads of expats to run things meaning that the richer emiratis was sort of busy becoming merely distributors of business while their allies expanded their holdings and in their turn spread out more money to the non-rich emiratis who in their turn...etc etc.

It must actually be rather hard to remain a poor emirati..Given their job guarantee, free higher education, funds available if they want to set up a business, free new houses if they got an old one etc etc.

AnotherWorld

Well it certainly doesn't breed a desire to work harder..

Another question, is it true that an Emirati, any Emirati, is required to sponsor any foreign business that wishes to register in the UAE and this sponsor is paid a yearly fee to be said sponsor without requiring to partake in any physical or mental activity?

admon

yep its true..

there have been cases in the past, where the sponsor has looked back at the successful business he is sponsoring and thought 'I'll have that' and done just that..

Alen1

Dear admon,

You are contradicting yourself; just to refresh your memory:

‘Re: PDC CHEQUE
________________________________________
Quote:
Originally Posted by Alen1
In order to set-up a LLC company in Dubai, you will need AED:
300k start-up capital, with a certificate from the bank confirming that the amount is available in your account and that it will remain in the account until such time as you furnish the bank with sight and copy of a valid trade licence.
c. 150k plus 5% agent plus 5% municipality for a thirteen-month office Tenancy Contract.
c.150k plus 5% agent plus 5% municipality for a residence Tenancy Contract
c.15k to obtain health certificate, medical tests and to obtain an investor’s visa (qualifies one for labour and residence).
When all the above are in place, then:
c. 15k to obtain a trade licence, a Chamber of Commerce certificate, and to have your offices inspected by the municipality.
Plus:
5k recoverable deposit telephone roaming charges.
10k recoverable deposit to Dubai customs (if you are importing goods).
A valid telephone land line telephone account is required.
Also:
c. between 10k and 50k (depending on your agreement) to pay your local sponsor’s first year’s commission.

The trade licence allows you to trade only with the goods or services as mentioned in the licence.

the following statement goes for this whole post - err no you don't.

and don't argue, as I have done it and still doing it.

Maybe that is what you were blagged into..

Sorry I forgot to say: Happy New Year
________________________________________
Last edited by admon : Dec 30th 2008 at 1:43 pm. Reason: to add Happy New Year of course!! ‘



BTW, when might I expect the courtesy of a reply to the last PM I sent to you?
Have you forgotten our little wager?

Norm_uk

Yup - only oil companies and free zone businesses are excluded from needing to have a local sponsor who controls 51% of the company but doesn't have to do any work whatsoever.

I wish the UK would do this...only those with native blood can majority own companies. I would take stakes in my local corner shop, chippy, Chinese take away, laundry, taxi service and afro-barbershop then stop work and focus on sending my kids to expensive public schools and brew my own beers and ales

N.

N.

Alen1

I agree with your sentiments, Norm.
Would you not agree that the Emirati authority more sensibly protects the well-being of its native citizens than do several other governments?

Tiger989

Aggggggggggggggggggggggggggh

You can setup your own buisness by all means and you can own it, I done it before for some company in Abu Dhabi and in Dubai. I forgot the exact details for it and can't be arsed googling it, but it can be done as I've done it.
And not always you need a local sponsor.