Introduction

UAE is the United States one of the most modern and sophisticated and developed,
and therefore attractive to invest and work in the Middle East. And I was able to
achieve this level of growth and modernity thanks to official efforts have been made
in achieving the aspirations of its people resolute to participate effectively in the
global developments, and acquisition of modern scientific knowledge and to benefit
from its achievements. The UAE is an active member in the entire Arab and
international organizations, particularly the World Trade Organization.

According to the information available, that the UAE is among the first Arab
countries that managed to record levels of economic, industrial and advanced
technology, as seen, thanks to the policies of the wise and clarity of vision to the
officials, as well as the expertise possessed by. and determination to achieve its noble
objectives of a better future and more influential in global developments, as will be
regional locomotive, which will contribute to the dissemination of development in all
parts of the Arab region, in addition to accelerating the process of Arab economic
integration and activated.

United Arab Emirates

In addition to the above, the UAE is rich in many natural resources, especially oil and
gas, which is able to benefit from its income to development of the country and the
attainment of a very advanced stage of growth and prosperity. We have noted some
local sources, the UAE fourth largest oil reserves in the world and the fifth natural gas
reserves at the global level. While appreciating the UAE reserves of oil at about 98
billion barrels, representing some 10% of the total world reserves, and more than 6
trillion cubic meters of gas. This and the UAE to make intensive efforts aimed at
increasing the production capacity of oil to meet growing global demand for energy.

According to the information available for the year 2005, the UAE is considering
passing a new law for companies; the sources quoted an official from the Ministry of
Economy and Planning, UAE during the first half of 2005. That the new company
law, will be applied in the UAE with the end of 2005, will allow foreign investors to
own more of 49% of companies operating in the country in some business sectors and
economic development. These sources said that the new law, which the ministry is
working on the preparation of the first reading of it, would be the proportion of
ownership of foreign investors in the vital economic sectors in order to preserve the
national interests of the UAE. It is worth noting that the Companies Act currently in
force does not allow the establishment of companies within the state than the
proportion of foreign ownership to 49% of its shares.

Emirates also tend to give a further liberalization of the banking sector, the Dubai
Chamber of Commerce and Industry, Dubai that the UAE tend to apply more of the
policy of deregulating banking and financial sectors which, in line with the steps to
sign a free trade agreement with the United States. A study prepared by the Chamber
that this policy is in line with the obligations of the state to the General Agreement on
Trade in Services (GATS) under the umbrella of the WTO, noting that the

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liberalization of such sectors, would not be discussed in the first round of negotiations
with the United States, but in the later stages. The study revealed that the UAE
banking sector is the backbone of the financial sector in the state, where the number
of national banks, 21 banks in 2004, spread in 377 branches in the UAE and abroad,
and 25 foreign banks with 112 branches, with two banks for investment and 48
representative offices.

On the other hand, noted the report of the International Monetary Fund, issued in
2005, the UAE economy, to advanced and high performance of the economy of the
UAE and to the diversity of its sources of income. He pointed to the expansion of
production base to deal with non-oil activities. Stressing the growing role of the
tourism sector and its future bright, he also praised the efforts of the State's continued
efforts to stimulate economic growth and to improve the performance of the financial
sectors and different economic, has been able to state the United Arab Emirates
achievements important tourist in the past years. Efforts continue to promote the
tourist sector in the State to make it one of the core resources of national income. The
report considered that the financial policy of the UAE and the adoption of a balanced
strategy of free and open economy, allowing each emirate to pursue its own fiscal
policy under the policy of the Union Assembly, where all UAE banking facilities and
the management of proceeds of funds according to government facilities considered
to balance the budget.

It is noteworthy that the President issued Law No. (9) for the year 2004, which paves
the privatization of National Petroleum Construction, This law aims to transfer the
ownership of stocks and funds belonging to the company Abu Dhabi National Oil
Company (ADNOC) of the National Petroleum Construction Company (NPCC) to
the holding company of the Emirate of Abu Dhabi. It should be noted that the
National Petroleum Construction Company (NPCC) was entrusted with the tasks of
the implementation of several mega projects in the field of oil and gas industry.
Whether at land or sea, and covers its activities in addition to the UAE, Qatar, Saudi
Arabia, Kuwait and Iran, as and extended its activity as well as to India.

The company is located in Mussafah and covers an area of manufacturing has more
than one million square meters in addition to the fleet of specialized marine barges
and cranes to carry out its work in the fields of offshore oil and gas. Was established
in 1973 with the participation of the Company (ADNOC) has increased by 70%, and
Consolidated Contractors Company (CCC) by 30%. Includes the activity of the
company manufacturing platforms and units of offshore production and extend the
pipe on land and at sea, and building reservoirs of oil and gas in addition to the
manufacture of tanks, high pressure and columns of production and packaging tubes.
internally and externally, and implement production complexes Wild "field
delineation" to calculate the ADCO, the company offers its services on the basis of
delivery key where the engineering work, procurement and manufacturing.

With regard to the overall budget were approved by the Council of Ministers in the
UAE on the draft state budget for 2005, which is equal to the estimated revenue with
estimated expenses, and $ 22 billion and 703 million dirham. It has been to fill the
gap in the state budget for the first time in more than 20 years thanks to the project in
a balanced income and expenditure for the year 2005, submitted by the Ministry of
Finance and Industry. At the earlier, decision of the Council of Ministers to re-

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balance the federal budget. Under the draft general budget of the ministries and
autonomous agencies and Accessories for the year 2005, the budget of FNC 48
million and 221 thousand dirham and budget of the UAE University 783 million
dirham, and budget of the Higher Colleges of Technology to AED 635 million and
the budget of Zayed University dirham 328 million. the budget of the Institute of
Management Development 17 million and 965 thousand dirham, and the budget of
the General Authority for Information 23 million and 200 thousand dirham, and the
budget of the Federal Environmental Agency 12 million dirham. and the budget of the
Public Authority for Youth Welfare, 79 million and 600 thousand dirham, and the
budget of the Federal Electricity billion and 354 million dirham. According to the
Ministry of Finance, the draft budget for 2005, was balance on the side of revenues
and expenses and taken into account, to maintain the level of services provided to
citizens and to achieve optimal use of available financial resources.

On the other hand, show the competent authorities in the Emirate of Abu Dhabi to
support the growing interest in the industry and make it a fundamental pillar in the
edifice of the national economy. This comes in the framework of a constant quest to
diversify sources of income, to pay special attention to the industry sector as one of
the foundations of the modern renaissance and its increasing role in contemporary
economies.

This is the industrial city of Abu Dhabi is one of the most important industrial zones
not only in the UAE but also across the region. It is available in this region all the
requirements necessary for the establishment of viable industrial projects in the
forefront of integrated infrastructure, as well as for its competent authorities of the
facilities and exemptions attractive to local and foreign investors. For this attracted to
this city in record time dozens of factories that invest nearly 6 billion dirham. In
addition, expects to informed sources to increase the value of investments to double
that amount after about attracting investments and new plants in the forefront of a car
manufacturer Volkswagen. In this framework of NEPAD, and signed "Mubadala
Development" and the Volkswagen agreement with four local banks and global
arrangement to loan $ 475 million euros (about 2.306 billion dirham) in order to
finance the purchase of Mubadala Development Company of the shares in an
institution for Lease Plan. Under the agreement, will the four banks Bank of Abu
Dhabi, National Bank of Abu Dhabi Commercial Bank, Barclays, and Citibank, led
by arranger. Moreover, Mubadala Development 25% stake of the shares of Lease
Plan, the Olayan Group owns a similar share, while Volkswagen owns 50%. The deal
is worth two billion euros. The across the three partners in the memorandum of
understanding on their intention to establish long-term partnership that will benefit all
parties, as well as their determination to develop working relationships among them.

On the other hand, did not leave the UAE part of the economic aspects only, and
sought to develop and activate it, and within the framework of support and
development of the national economy. In the field of industry, issued Law No (3) for
the year 2004, the establishment of the Higher Corporation for Specialized Economic
Zones in the Emirate of Abu Dhabi, the aim of providing integrated infrastructure and
specialized services and distinct. The establishment and management of specialized
areas, and make it a distinctive destination for domestic and international
investments, will help to create appropriate atmosphere for achieving the aspirations

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of the emirate towards the future full of positive economic developments, and based
on science and technology.

The Foundation aims to contribute in the development of the economic activity of

areas of specialized agencies and other in the emirate, and promotion and supervision
to participate in achieving the objectives of the national economy. To encourage local
industries and development, it expands the industrial production base and
diversification of sources of national income of the UAE. Among the tasks entrusted
to the Foundation, creating the right climate to attract more qualified national and
qualify to participate in the economic sphere of the areas of specialized, in addition to
developing and promoting small and medium industries and qualifying national
cadres so. as well as raising awareness of the concept of specialized areas in the
community through the preparation and publication of studies, research and
information systems and data, and to encourage development and innovation in the
areas of specialized areas. Is also expected from the institution of coordination
between the relevant project list and proposed projects in the future at the local scale
and at the level of the Cooperation Council for the Arab Gulf States in particular and
Arab countries in general in order to achieve economic integration. In addition to
activating cooperation with various countries and specialized international
organizations to take, advantage of experiences and information in the field the
development of specialized areas.

As part of efforts to diversify, income sources and reduces dependence on oil and
strengthens the role of other sources, the competent authorities to seek to transform
Abu Dhabi into a free zone within a strategic plan to expand the existing free zones,
and the launch of new areas to attract more domestic and foreign investment. Has
praised the economic activities in the UAE and the region ambitious scheme adopted
by the Emirate of Abu Dhabi to turn the whole into a free zone where all the available
facilities to ensure availability of free zones in the world. In the UAE, more than three
thousand companies operating in various regions of the Free State with total
investments of about $ 15 billion dirham (about $ 4.2 billion). The free zones in the
UAE channels to attract international investments, especially marine areas free of its
strategic importance and a link to most of the ports of the state, regions are free
economic and trade portal for the UAE.

The following is a good example showing the size of economic processes in the
United Arab Emirates and will review the financial statements and balance sheet for
the Telecom and final accounts.

Income Statement
Income data
sales 31,929.49
Investments and other 917.58
Finance costs (384.84)
Income of associated companies 1,243.23
Minority Rights 201.97
Zakat and taxation (100.41)
Royalties (7,630.75)

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Exceptional item 0.00
Net income 7,630.75
Average number of shares 7,906.10
Earnings per share 0.97

Balance sheet

Assets
Cash and cash equivalents 10,276.74
debtor 8,720.79
Stock 316.26
Other 0.00
Total current assets 19,313.79
Property 20,675.36
Investments 16,730.12
Intangible assets 15,550.30
Other 3,337.56
Total non-current assets 56,293.34
Total assets 75,607.13
Liabilities
Creditors 20,078.21
Short-term debt 1,261.80
Other 3,137.98
Total Current Liabilities 24,477.99
Long-term loans 5,758.88
Other 6,654.34
Total non-current liabilities 12,413.22
Total liabilities 36,891.21
EQUITY
Capital 7,906.14
Reserves 30,809.79
Change in fair value 0.00
Total equity 38,715.93
Average number of shares 7,906.10
Book Value Per Share 4.90