Original Distribution of Wealth
Jan 4th 2009, 4:29 pm
#16
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Joined: Jul 2008
Location: Living in a mirage
Posts: 606
Re: Original Distribution of Wealth
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.
Very many of the what would be termed 'middle class' Emiratis are up to their eyeballs in debt - car loans, marriage loans, designer handbag loans, etc. Also, there are a lot of misconceptions amongst young married couples about what marriage consists of especially in terms of money management and responsibility.
Just because someone has the name Al Suwaidi, or Al Mansouri does not mean they are rich or powerful, the tribes are large and spread over all the Emirates. There is also a distinct hierarchy amongst the tribes and a lot of 'who is your father' and which Emirate and how far back they can trace their heritage. Actually they are pretty snobbish.
Some of the tribes spread across from Saudi. Sheikh Zayed married into many of the Abu Dhabi tribes at some point, Mansouri, Darmarki, etc to consolidate his power.
There is also a high level of unemployment amongst Emiratis, especially in the poorer Emirates where there isn't the work for them. The social security system is not as good as it should be and investment in 'state' education is low and needs to be higher in order to provide them with a relevant and useable education to help them compete in the market place.
There are many misconceptions about what sort of standard of living middle and working class Emiratis have, that's probably due to the lack of socialising between nationals and expatriates.
Beardman might drink tea made with rainbow milk from a Kraft cheese glass for instance!
Jan 4th 2009, 6:06 pm
#17
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Thread Starter
Joined: Dec 2008
Location: Western Australia
Posts: 758
Re: Original Distribution of Wealth
Actually I'd like to hear beardmans take on this and whilst it certainly isn't any of our business and he probably wouldn't share, an explanation of his own personal situation would help the enlightenment process.
Jan 4th 2009, 6:32 pm
#18
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Joined: Oct 2008
Location: Moved to Mirdif
Posts: 319
Re: Original Distribution of Wealth
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.
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.
Jan 5th 2009, 2:18 am
#20
BE Forum Addict
Joined: Aug 2007
Posts: 3,287
Re: Original Distribution of Wealth
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?
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?
And a UAE sponsor doesn't dictate anything that I have said - you stated it cost circa 600k to set up an LLC - I said it could be done for circa 50K
Bother me when you have something to bother me with..
Jan 5th 2009, 2:21 am
#21
BE Forum Addict
Joined: Aug 2007
Posts: 3,287
Re: Original Distribution of Wealth
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.
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.
Jan 5th 2009, 4:41 am
#22
Lost in BE Cyberspace
Joined: Aug 2007
Posts: 7,646
Re: Original Distribution of Wealth
Professional Companies can be 100% foreign owned but do need to appoint a Service Agent,as do Branch Offices of Foreign companies.
There are about 8 ways to set up a business in UAE but some restricted to UAE Nationals only i.e General Partnership.
Most popular way imho/experience of expats setting up is Limited Liability Company(LLC) wherein:
1. A UAE National must 'hold' at least 51% of the shares.
2. A UAE accredited Auditor has to be appointed
3. Partners should not exceed a total of 5 people
4. Minimum share capital -dependant on genre of company
ranges from 300,000 to 3million AED.
or Branch Office wherein
1. A UAE Service Agent has to be appointed and an Agency Agreement drawn up to regulate business activity.
This link might help:
http://www.abudhabichamber.ae/user/S...px?LevelId=878
Jan 5th 2009, 5:43 am
#23
**** it we'll do it live
Joined: Oct 2004
Location: Dubai
Posts: 7,892
Re: Original Distribution of Wealth
Absolute misconception about 'only a few are still very poor', and they aren't necessarily of Yemeni or Iranian extraction.
Very many of the what would be termed 'middle class' Emiratis are up to their eyeballs in debt - car loans, marriage loans, designer handbag loans, etc. Also, there are a lot of misconceptions amongst young married couples about what marriage consists of especially in terms of money management and responsibility.
Just because someone has the name Al Suwaidi, or Al Mansouri does not mean they are rich or powerful, the tribes are large and spread over all the Emirates. There is also a distinct hierarchy amongst the tribes and a lot of 'who is your father' and which Emirate and how far back they can trace their heritage. Actually they are pretty snobbish.
Some of the tribes spread across from Saudi. Sheikh Zayed married into many of the Abu Dhabi tribes at some point, Mansouri, Darmarki, etc to consolidate his power.
There is also a high level of unemployment amongst Emiratis, especially in the poorer Emirates where there isn't the work for them. The social security system is not as good as it should be and investment in 'state' education is low and needs to be higher in order to provide them with a relevant and useable education to help them compete in the market place.
There are many misconceptions about what sort of standard of living middle and working class Emiratis have, that's probably due to the lack of socialising between nationals and expatriates.
Beardman might drink tea made with rainbow milk from a Kraft cheese glass for instance!
Very many of the what would be termed 'middle class' Emiratis are up to their eyeballs in debt - car loans, marriage loans, designer handbag loans, etc. Also, there are a lot of misconceptions amongst young married couples about what marriage consists of especially in terms of money management and responsibility.
Just because someone has the name Al Suwaidi, or Al Mansouri does not mean they are rich or powerful, the tribes are large and spread over all the Emirates. There is also a distinct hierarchy amongst the tribes and a lot of 'who is your father' and which Emirate and how far back they can trace their heritage. Actually they are pretty snobbish.
Some of the tribes spread across from Saudi. Sheikh Zayed married into many of the Abu Dhabi tribes at some point, Mansouri, Darmarki, etc to consolidate his power.
There is also a high level of unemployment amongst Emiratis, especially in the poorer Emirates where there isn't the work for them. The social security system is not as good as it should be and investment in 'state' education is low and needs to be higher in order to provide them with a relevant and useable education to help them compete in the market place.
There are many misconceptions about what sort of standard of living middle and working class Emiratis have, that's probably due to the lack of socialising between nationals and expatriates.
Beardman might drink tea made with rainbow milk from a Kraft cheese glass for instance!
Jan 5th 2009, 5:50 am
#24
**** it we'll do it live
Joined: Oct 2004
Location: Dubai
Posts: 7,892
Re: Original Distribution of Wealth
this should help clarify the requirements for setting up of a business in Dubai
http://www.dubaided.gov.ae/main/gn/D...fDoingBusiness
"Terms & Conditions on Operating
Economic Activities in the Emirate of Dubai
First – United Arab Emirates Nationals:
United Arab Emirates nationals may operate all commercial, professional and industrial activities subject to requirements of other government authorities, according to each activity, and to approvals issued by such authorities. For example, media activities require approval of the National Media Council.
They may carry on activities through any of the following legal forms:
individual establishment
limited liability company
joint liability company
private shareholding company
public shareholding company
civil business company
Second – Nationals of Gulf Cooperation Council Countries (GCCC)
GCCC nationals may carry on most commercial, professional and industrial activities, subject to requirements of other government authorities, according to each activity and to approvals issued by such authorities. The may carry on activities through any of the following legal forms:
Individual establishment
limited liability company: two or more GCCC nationals may establish a limited liability company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid-up capital.
private shareholding company: three or more GCCC nationals may establish a private shareholding company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid-up capital.
public shareholding company.
Civil business company: two or more GCCC nationals may establish a civil business company to practice a specific profession without a local services agent. However if there is one or more partners who are not GCCC nationals, a local services agent who is a UAE national shall be appointed or included as a partner.
Third - Nationals of other countries
Nationals of other Arab or foreign countries may carry on economic activities through any of the following forms:
An individual establishment: it may be established to practice any professional activity, only by appointing a local services agent who shall be a UAE national.
Limited liability company: this kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE partners whose shareholding shall not be less than 51% of the paid-up capital .
Private shareholding company: this kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE national partners whose shareholding shall not be less than 51% of the paid-up capital.
Civil business company: two or more persons may establish a civil business company to practice a profession, provided that a local services agent who must be a UAE national is appointed or included as a partner.
Fourth – Foreign Companies:
Any company incorporated outside the United Arab Emirates may operate any commercial, industrial or professional activity through one of the following legal forms:
branch of a foreign company
Limited liability company: this kind of company shall be established to operate any commercial or industrial activity, including one or more UAE national partner whose shareholding shall not be less than 51% of the paid-up capital.P
rivate shareholding company: this kind of company shall be established to operate any commercial or industrial activity, including one or more UAE national partner whose shareholding shall not be less than 51% of the paid-up capital.
Public shareholding company."
http://www.dubaided.gov.ae/main/gn/D...fDoingBusiness
"Terms & Conditions on Operating
Economic Activities in the Emirate of Dubai
First – United Arab Emirates Nationals:
United Arab Emirates nationals may operate all commercial, professional and industrial activities subject to requirements of other government authorities, according to each activity, and to approvals issued by such authorities. For example, media activities require approval of the National Media Council.
They may carry on activities through any of the following legal forms:
individual establishment
limited liability company
joint liability company
private shareholding company
public shareholding company
civil business company
Second – Nationals of Gulf Cooperation Council Countries (GCCC)
GCCC nationals may carry on most commercial, professional and industrial activities, subject to requirements of other government authorities, according to each activity and to approvals issued by such authorities. The may carry on activities through any of the following legal forms:
Individual establishment
limited liability company: two or more GCCC nationals may establish a limited liability company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid-up capital.
private shareholding company: three or more GCCC nationals may establish a private shareholding company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid-up capital.
public shareholding company.
Civil business company: two or more GCCC nationals may establish a civil business company to practice a specific profession without a local services agent. However if there is one or more partners who are not GCCC nationals, a local services agent who is a UAE national shall be appointed or included as a partner.
Third - Nationals of other countries
Nationals of other Arab or foreign countries may carry on economic activities through any of the following forms:
An individual establishment: it may be established to practice any professional activity, only by appointing a local services agent who shall be a UAE national.
Limited liability company: this kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE partners whose shareholding shall not be less than 51% of the paid-up capital .
Private shareholding company: this kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE national partners whose shareholding shall not be less than 51% of the paid-up capital.
Civil business company: two or more persons may establish a civil business company to practice a profession, provided that a local services agent who must be a UAE national is appointed or included as a partner.
Fourth – Foreign Companies:
Any company incorporated outside the United Arab Emirates may operate any commercial, industrial or professional activity through one of the following legal forms:
branch of a foreign company
Limited liability company: this kind of company shall be established to operate any commercial or industrial activity, including one or more UAE national partner whose shareholding shall not be less than 51% of the paid-up capital.P
rivate shareholding company: this kind of company shall be established to operate any commercial or industrial activity, including one or more UAE national partner whose shareholding shall not be less than 51% of the paid-up capital.
Public shareholding company."
Jan 5th 2009, 1:07 pm
#25
BE Enthusiast
Joined: Oct 2008
Location: Moved to Mirdif
Posts: 319
Re: Original Distribution of Wealth
Mr Alen, I am still waiting for you to provide details of the agreement as requested.
And a UAE sponsor doesn't dictate anything that I have said - you stated it cost circa 600k to set up an LLC - I said it could be done for circa 50K
Bother me when you have something to bother me with..
And a UAE sponsor doesn't dictate anything that I have said - you stated it cost circa 600k to set up an LLC - I said it could be done for circa 50K
Bother me when you have something to bother me with..
Sorry to be bothering you.
If you can set up a LLC start to finish for c.50k I can sell your technology for you; we could make millions together.
The 500k I would have to pay to you would prove to be a great investment.
You have my full personal contact details, I expect you to reciprocate.
I'm glad to see that your posting manners have improved slightly.
Last edited by Alen1; Jan 5th 2009 at 1:23 pm. Reason: start to finish.
Jan 5th 2009, 1:23 pm
#26
BE Enthusiast
Joined: Oct 2008
Location: Moved to Mirdif
Posts: 319
Re: Original Distribution of Wealth
That is true, unfortunately.
Also, some of us have a tendency to castigate (say) the UK government for lenient treatment of immigrants, whilst also criticizing our hosts for the sterner treatment we - as immigrants - receive.
Also, some of us have a tendency to castigate (say) the UK government for lenient treatment of immigrants, whilst also criticizing our hosts for the sterner treatment we - as immigrants - receive.
Jan 5th 2009, 1:48 pm
#27
BE Forum Addict
Joined: Aug 2007
Posts: 3,287
Re: Original Distribution of Wealth
Dear admon,
Sorry to be bothering you.
If you can set up a LLC start to finish for c.50k I can sell your technology for you; we could make millions together.
The 500k I would have to pay to you would prove to be a great investment.
You have my full personal contact details, I expect you to reciprocate.
I'm glad to see that your posting manners have improved slightly.
Sorry to be bothering you.
If you can set up a LLC start to finish for c.50k I can sell your technology for you; we could make millions together.
The 500k I would have to pay to you would prove to be a great investment.
You have my full personal contact details, I expect you to reciprocate.
I'm glad to see that your posting manners have improved slightly.
Jan 8th 2009, 5:02 am
#30
Just Joined
Joined: Dec 2008
Posts: 18
Re: Original Distribution of Wealth
I want to correct something that I have read. Someone mentioned that original locals are wealthier than ones of Yemeni, Iranian or Sub continent origin. That might apply in other emirates, but in Dubai it is the reverse. Almost all the families from Gargash, AlTayer, Gergawi, Bin Hindi and many other families. This doesnt apply to other emirates though, were oil wealth and families closest to the ruler families are the wealthiest.
