2013 Annual Report

The American Business Council o f

D u b a i & t h e N o r t h e r n E m i r at e s CHAPTER, U.S. CHAMBER OF COMMERCE

2013

The year Dubai was awarded

Expo 2020 T h e 2 0 1 3 A B C Annual Report

The American Business Council o f

D u b a i & t h e N o r t h e r n E m i r at e s CHAPTER, U.S. CHAMBER OF COMMERCE

T h e 2 0 1 3 A B C Annual Report

2013 - T h e y e a r D u b a i w a s a w a r d e d Expo 2020

Table of Contents Message from the President.....................................................................................3 Who We Are......................................................................................................................4 Mission...............................................................................................................................4 Expo 2020 by the Numbers............................................................................................5 ABC Highlights of 2013 ABC Hosts American Business Forum, I.D.E.A.S.....................................................7 American Business Council Hosts Sanctions Compliance Seminar with Chadbourne & Parke and Ernst & Young..........................................................................................................8 The ABC Annual Arab Health Breakfast................................................................9 ABC and AmCham Abu Dhabi Host Dubai Airshow Breakfast Featuring Assistant Secretary of Defense ...........................................................................................10 Affiliations

U.S. Chamber of Commerce...............................................................................11

Dubai Chamber of Commerce & Industry.........................................................11

U.S. Mission in the U.A.E........................................................................................11

MECACC................................................................................................................12

Doorknock Washington, DC................................................................................12

U.S.-U.A.E. Business Council...................................................................................12

Publications

Membership Directory..........................................................................................13

Quarterly Newsletter..............................................................................................13

Website...................................................................................................................13 ABC Events.......................................................................................................................14 2013 Board of Directors...........................................................................................15 Thank You to our Supporters................................................................................16 Financial Statements

Statement of Comprehensive Income...............................................................17

Statement of Financial Position............................................................................18

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Message from the 2013 President

Ramsey Jurdi, International Partner at Chadbourne & Parke The United Arab Emirates, in 2013, was in transition. Transition from the financial lows of the world economic recession to the renewed boom that we are experiencing now. Transition from a regional hub to a global hub.

And transition from a real-estate and logistics-driven economy to a wellrounded and balanced marketplace.

The American Business Council of Dubai & the Northern Emirates also transitioned with the U.A.E., and 2013 marked the culmination of that transition. We have expanded and varied our programming – to bring our members business and policy focused meetings, more U.S. and U.A.E. Government interaction, and more visibility. We have brought added value to ABC membership – through a growing membership rewards program and knowledge sharing seminars hosted by our members.

And we have grown our membership, strengthened our finances, and polished our internal and external communications. I hope you have noticed the difference!

This transition was planned as a direct result of member feedback and the adoption of a new five-year strategic plan in 2012. We have accomplished many of our objectives in less than three years, and we now look beyond the transition to the future. We look to Expo 2020, Africa, and outbound investment. We are looking at entrepreneurship and SMEs. The ABC follows the trajectory of U.S. business in the U.A.E, and that path has never looked better.

As always, the ABC’s Board of Directors and Administration have new plans for 2014. Our message to our members, however, remains constant: support your organization, attend programs, and volunteer. You will see the benefits.

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Who We Are The American Business Council of Dubai & the Northern Emirates operates under the auspices of the Dubai Chamber of Commerce & Industry and functions as a Chapter of the U.S. Chamber of Commerce. Since its founding in 1985, the American Business Council has supported U.S. business interests in Dubai & the Northern Emirates and acts as a liaison between government and commercial enterprises.

The American Business Council is a 500 plus member-driven organization. Fortune 500 companies and key business leaders are well represented among the members of the American Business Council. The American Business Council provides a forum for understanding and interaction between the local business community and members of the American Business Council. Members are supported through a robust calendar of informational programs, round-table discussions, and business networking opportunities.

Mission We exist to: Act as the catalyst of American Business in Dubai & Northern Emirates.

Be the consolidated voice of the American business community.

Coordinate networking among Americans and with regional business communities.

Drive knowledge sharing and information distribution to facilitate and improve American business.

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Expo 2020 By 80,000+ ho t e l r oom s w ill

keep visitors

c o m f or table

during t h e ir v isi t

to the Expo.

The Expo will

In the last round of

116 votes. voting the U.A.E. had

Expo 2020 Dubai will celebrate the

50 438 take place on a

hectare site.

th

anni v ersary

o f th e UA E .

The

Connecting minds, 5

the Numbers This will be the

Expo 20 2 0 at trac ts

investors and workers

from over

200 countries.

The Expo 2020 has nearly

1,000,000

likes on facebook.

1

st

time

The World Expo has ever been held in the

Middle East, Africa and South East Asia in the

history of the event.

25 million

The expected number of visitors.

Theme

creating the future.

Source: Bureau International des Expositions & expo2020dubai.ae

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AB C H ighl igh ts of 2013

ABC Hosts American Business Forum, I.D.E.A.S. The ABC, in strategic partnership with the Dubai

A major highlight of the Forum was the panel of

Economic Council (DEC), joined business leaders from

experts discussion moderated by ABC President and

the U.S. and the U.A.E. to discuss important business

Chadbourne & Parke International Partner, Ramsey

issues and solutions at the annual American Business

Jurdi. The panel included:

Forum, I.D.E.A.S., on Sunday, November 10, 2013 at the

His Excellency Hani R. Al Hamli Secretary General Dubai Economic Council

Grand Hyatt Dubai.

Hosted and organized by the ABC, the conference highlighted the ongoing Economic Policy Dialogue

Jeffrey L. Johnson President Boeing Middle East

(EPD) between the U.S. and the U.A.E., which served as the inspiration for the Forum. Since March 2012, the EPD has served as a government to government umbrella for new and ongoing initiatives that are aimed at deepening economic and commercial ties between the U.A.E. and U.S. The ABC, in seeking to actively engage all parties for the maximum benefit of the business community, signed a Memorandum of Understanding with the DEC during the annual Forum, creating a solid partnership. Given the close relationship between the U.S. and the U.A.E., reinforcing the bond between the two countries is a priority, both

Imad Benmoussa General Manager The Coca-Cola Export Corporation Frank J. Kemnetz Vice President ExxonMobil Upstream Ventures (Middle East) Timothy J. Richards Managing Director, Government Affairs & Policy General Electric

economically and politically. Total trade between the U.S. and the U.A.E. reached a record-high of $24.8 billion

The panel discussed how challenges to the U.S.-U.A.E.

in 2012, making the U.A.E. the largest trading partner

bilateral trade relationship have been overcome to

regionally with the U.S. Additionally, the U.A.E. was the

generate today’s strong and growing bilateral trade

17th largest export destination for U.S. goods worldwide

figures. The panelists’ dialogue consisted of topics

in 2012. American businesses continue to capitalize on

ranging from supply chain to education and how

this momentum, while also strengthening the U.A.E.’s

they successfully integrated into the U.A.E. business

economy. U.A.E. businesses are also increasing their

arena. This distinguished panel cited many factors

investment opportunities in the U.S., for example

that contributed to their accomplishments including

through the Strata Global Foundries investment in New

how the U.A.E. has employed farsighted leadership

York State. The principle behind the Forum is to bring

that is open to working with international companies

together all stakeholders in Dubai in order to explore

and is committed to infrastructure and the best

ways to support trade and investment between the

technology.

U.S. and the U.A.E.

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A B C H ighlights of 20 1 3

The sector specific roundtables were facilitated by

here, we are ahead of schedule and the National

industry leaders and focused on identifying challenges

Export Initiative is alive and well here in the U.A.E.”

facing particular sectors and harnessing potential

His Excellency, Hani Al Hamli added, “The U.A.E. is

synergies going forward. These break-out sessions

committed to promote bilateral cooperation with

included:

dozens of countries around the world from the east to the west; however, we look at the United States

Health Sector

as a strategic partner, given the historic relationship

Hospitality, Travel, & Tourism

between the two countries. Furthermore, the structure

Transportation, Logistics & GCC Customs

and sophistication of this relationship exceeds mere

Technology & Interactive Media

goods and services, to cover a spectrum of activities

Oil, Gas, & Petrochemicals

including education, training, culture, healthcare,

Infrastructure & Construction

science and technology.”

Mr. Al Hamli praised

the ABC for its enthusiasm and efforts to underpin The opening remarks were given by U.S. Consul

a concrete foundation for long-term and strategic

General in Dubai, the Honorable Robert Waller.

partnership and also for the ABC’s initiative of holding

Mr. Waller stated, “In 2009, President Obama

a forum that brought together all stakeholders in

launched the National Export Initiative to double

Dubai and the Northern Emirates.

U.S. exports in five years, thus creating jobs at home and economic opportunity abroad. I’m pleased to

The event was sponsored by DynCorp International

report that here in the U.A.E., thanks in part to public

with support from the International New York Times

and private advocacy, we are not only on track to

and Khaleej Times.

meet that goal but to exceed it. Thanks to all of you

American Business Council Hosts Sanctions Compliance Seminar with Chadbourne & Parke and Ernst & Young On Wednesday, October 23 rd, the ABC hosted an

Mr. Jones remarked: “It is more important than ever

Economic Sanctions and Compliance Seminar

for companies and financial institutions operating

as part of its Knowledge Exchange Series. The

in the Middle East and beyond to remain vigilant

speakers - ABC President and Chadbourne &

and take a proactive approach to sanctions and

Parke International Partner, Ramsey Jurdi; Ernst

other counter illicit finance compliance matters.”

& Young Executive Director, Stuart Jones Jr.; and

Mr. Jurdi added: “The U.S. Government continues

United States Treasury Financial Attaché for the

to focus on enacting legislation and enforcing

Gulf Region, Katherine Bauer - discussed in detail

existing laws with respect to blocking access to

the intricacies of U.S. sanctions in the Middle East

the U.S. market for non-U.S. entities that continue

and compliance challenges facing businesses

to conduct significant transactions with Iran.”

in the U.A.E. Each speaker, coming from three different industries, brought unique perspectives to the event.

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AB C H ighl igh ts of 2013

The ABC Annual Arab Health Breakfast The ABC hosted industry leaders from healthcare

and bring added value to our members by acting

and pharmaceutical companies, Arab Health

as an advocate for U.S. business interests in the

exhibitors, local representatives and government

U.A.E.” After providing a brief overview, Mr. Jurdi

officials at its annual Arab Health Breakfast on

introduced Dr. Zeydan Abuissa.

Tuesday January 29, 2013 at the Ritz Carlton, Dubai International Financial Centre. The event

During his keynote address, Dr. Abuissa highlighted

welcomed a large crowd of ABC members and

the current issues facing the health sector and the

guests including U.S. Ambassador Michael Corbin;

Task Force’s recommendations for helping U.S.

Pennsylvania State Senator Mike Brubaker; U.S.

business thrive in the U.A.E. In his comments, Dr.

Consul General Robert Waller; Director of the Utah

Abuissa noted that addressing such issues as the

Governor’s Office of Economic Development,

optimization of the distributor network, accessing

Franz Kolb; General Manager of Pfizer and Co-

direct to pharmacy delivery, developing new

Chairman of the ABC Health Sector Task Force, Dr.

anti-counterfeiting

Zeydan Abuissa; and host of the US International

insurance regulations will become a cornerstone

Pavilion at Arab Health 2013, Tom Kallman, CEO of

of the health sector task force focus for 2013.

Kallman Worldwide Inc.

U.S. Consul General in Dubai, Robert Waller

strategies

and

integrating

provided closing comments on the local business The breakfast highlighted Arab Health 2013 and

environment and the surge in bilateral trade

the work of the ABC Health Sector Task Force,

between the U.S. and the U.A.E. over the past

which was charged with reviewing U.S. business

two years. He noted that the American Business

engagement

Emirates.

Council of Dubai & the Northern Emirates and

American Business Council President Ramsey

in

the

United

Arab

AmCham Abu Dhabi are valuable resources for

Jurdi provided welcome remarks and addressed

U.S. companies doing business in this region.

the group of senior government officials and

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executives by saying “one of the ABC’s objectives

The event was sponsored by Kallman Worldwide.

is to be the voice of American business in Dubai

A B C H ighlights of 20 1 3

ABC and AmCham Abu Dhabi Host Dubai Airshow Breakfast Featuring Assistant Secretary of Defense The ABC and AmCham Abu Dhabi held a breakfast

Ms. McFarland currently serves as the principal adviser

meeting on Monday, November 18, 2013 at Dubai

on matters relating to acquisition to the Secretary

World Central Headquarters on the sidelines of

of Defense and the Under Secretary of Defense for

the 13th Dubai Airshow.

Prominent members of

Acquisition, Technology and Logistics. Ms. McFarland

the American business community came to hear

began her civil service career at Headquarters Marine

insights from Ms. Katrina G. McFarland, U.S. Assistant

Corps, which lead her to the Department of National

Secretary of Defense (Acquisition), regarding the U.S.

Defense in Ontario, where she performed Procurement

defense sector.

Head of Electronics duties. Her career progressed to Director for Acquisition for the Missile Defense Agency,

The ABC-AmCham joint breakfast is held during each

where Ms. McFarland’s advice led to over $37 billion

Dubai Airshow to support the local American and

of sole source procurement activity being opened up

Emirati business communities and their interaction with

to competition. Prior to becoming Assistant Secretary

the many visiting U.S. aerospace and defense industry

of Defense (Acquisition) she served as President of the

executives.

This high-profile event has become a

Defense Acquisition University, where she continued

tradition among U.S. military, diplomats, and local

to build the university’s outstanding reputation as the

and visiting industry CEOs. Attendees included: U.S.

Department of Defense’s primary learning institution.

Ambassador to the U.A.E., The Honorable Michael Corbin; U.S. Ambassador to the State of Qatar, The

The Dubai Airshow is the premiere showcase of

Honorable Susan L. Ziadeh; U.S. Consul General in

aviation and air defense products in the Middle East

Dubai, The Honorable Robert Waller; Federal Aviation

and typically results in billions of dollars of aircraft and

Administration Director of Europe, Africa & Middle

defense contracts. This year’s show was the largest

East, Catherine Lang; AmCham Abu Dhabi Chairman,

in its history and was held at the new Al Maktoum

Matthew E. Byrd; and ABC President, Ramsey B. Jurdi.

International Airport in Dubai. Matthew Byrd and Ramsey Jurdi expressed their enthusiasm for the strong

During her keynote address, Ms. McFarland stated,

presence of U.S. aviation and defense companies,

“The Department of Defense is improving the U.S.

which are key components of American industry. ABC

Government’s and U.S. industry’s ability to promote

Dubai and AmCham Abu Dhabi are proud to partner

and implement defense exports in support of our

with the Dubai Airshow, which uniquely showcases

foreign policy and national security objectives.

American businesses operating in the U.A.E.

Current and future efficiencies achieved through these efforts will help us build, field, and support

This joint event was sponsored by Aerojet Rocketdyne,

better defense equipment for ourselves, our allies,

Lockheed Martin, Boeing, DynCorp International, Bell

and our friends.”

Helicopter, with support from Kallman Worldwide and Dubai World Central.

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Af f il iat ions

U.S. Chamber of Commerce The United States Chamber of Commerce (USCC) is the world’s largest business organization representing the interests of more than three million businesses of all sizes, sectors, and regions. Members range from mom-and-pop shops and local chambers to leading industry associations and large corporations.

The Chamber is staffed with policy specialists, lobbyists, and lawyers. Politically, the Chamber is generally considered to be a conservative organization. The Chamber is one of the largest lobbying groups in the U.S., spending more money than any other lobbying organization on a yearly basis.

The U.S. Chamber of Commerce was created on April 22, 1912 by President Taft and celebrated it’s 100th anniversary in 2012. www.uschamber.com

Dubai Chamber of Commerce & Industry Dubai Chamber of Commerce & Industry is a leading chamber of commerce in the Middle East and has kept pace with the rise of the Emirate of Dubai as one of the fastest growing cities in the world. This apex facilitator of business serves over 100,000 members with world-class services and helps the business community develop its commercial activities and compete in the global market.

Dubai Chamber’s mission is to represent, support, and protect the interests of the business community in Dubai, while, its strategic objectives are to create a favorable business environment, support the development of business, and promote Dubai as an international business hub. The Chamber plays a significant role in enhancing competitiveness, voicing, and influencing policies of interests to its members and to local, regional and international authorities.

Dubai Chamber established 24 business groups representing different economic sectors in Dubai, 39 business councils which represent the Dubai-based foreign companies according to nationality, and 70 trade centers for a number of countries. www.dubaichamber.com

U.S. Mission in the U.A.E. In 2013, the U.S. celebrated 42 years of diplomatic relations with the United Arab Emirates. Working in cooperation with public and private partners across the U.A.E., the U.S. Consulate General in Dubai, along with the U.S. Embassy in Abu Dhabi, supports a range of programs reflecting the depth and breadth of the U.S.-U.A.E. diplomatic relationship.

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The new Consulate General is a LEED-certified green building, with facilities that dramatically enhance its abilities to serve the public in Dubai and the Northern Emirates. The Consulate General hosts a public educational advising center, a service of the global EducationUSA advising program; each year, EducationUSA assists thousands of students in the U.A.E. who are considering study at one of the more than 4,000 accredited colleges and universities in the U.S.

A ffiliation s

MECACC In recent years, the Middle East Council of American Chambers of Commerce (MECACC) has established itself as the voice of American business in the vital Gulf Region. An affiliate of the United States Chamber of Commerce, the MECACC comprises ten American chambers of commerce (AmCham) operating in the region.

MECACC was officially established in 1989. Since its inception, this voluntary, nonpartisan, and nonprofit organization has actively fostered improved economic relations between the U.S. and the GCC countries through trade and investment, as well as cross-cultural exchange and mutual understanding. The MECACC is widely recognized for its contributions in these areas, both in the U.S. and the Gulf, and it continues to play an instrumental role in building economic, political and cultural bridges between the two regions.

Together with its AmCham members, the MECACC has also worked hard to assist U.S. companies competing for a share of the region’s lucrative export market. Many of America’s competitors have developed sophisticated export strategies which provide strong, direct government support for their citizens and companies in overseas markets. The MECACC, working closely with the U.S. Government, is committed to leveling the playing field for American companies and going head-to-head with global competition. www.mecacc.org

Doorknock Washington, DC Every year a “Doorknock” delegation from ABC and MECACC visits Washington, DC and the U.S. Chamber of Commerce to represent American business interests. In 2013 MECACC continued their everlasting work to educate Congress and their staff about the Foreign Earned Income Exclusion (FEIE) in the context of job creation, exports, trade and economic growth. This effort remains a defensive play as well as an attempt to level the playing field for Americans living and working abroad. MECACC’s presence on the Hill again reinforced the message: Americans Abroad = US Exports = Jobs at Home MECACC also added their evolving position on the Foreign Account Tax Compliance Act (FATCA) to their legislative agenda. Just a week after MECACC’s Door Knock, their message was re-enforced by a massive lobbying push, conducted by a powerful array of special interests, and targeted at Congressional Leaders and the Department Of The Treasury. The Council organized a U.S. Public Affairs Committee (USPAC) to represent the membership views on this and the FEIE.

U.S.-U.A.E. Business Council The U.S.-U.A.E. Business Council is a progressive business advocacy organization solely committed to the advancement of the trade and commercial relationship between the United States and the United Arab Emirates. The U.S.-U.A.E. Business Council provides its diverse membership unparalleled access to senior decision makers in business and government in the U.A.E. and in the U.S. The Business Council actively works to ensure that the U.S. and U.A.E. remain attractive destinations for foreign direct investment by conducting effective policy advocacy, undertaking various trade promotion initiatives, providing ongoing updates on the business climate in both countries, and helping develop strategic relationships between U.S. and U.A.E. business and government officials.

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P u bl ic at ions

Membership Directory As a valuable benefit to our members, the ABC publishes an annual membership directory, both in hard copy and with current updates online at www.abcdubai.com. The directory includes detailed information about members, both business and individuals, important information on doing business in the U.A.E., as well as contact information for regional AmChams and U.S. Government offices. This directory has proven to be an invaluable resource for business professionals, dignitaries and other interested parties within the U.A.E. and around the world.

,

MEMBE

RSHIP D

IR EC TO

RY 2013

Quarterly Newsletter ABC’s quarterly online newsletter includes relevant business topics, a calendar of events, U.S. Chamber of Commerce news and corporate news from ABC member contributors. The newsletter has a wide circulation including members, local and U.S. Government offices, friends of the ABC and regional AmChams. Advertising opportunities are available.

Website The ABC website is the best resource for getting the most out of the ABC. The website gives the opportunity to join, generate business, raise awareness, create value, network, set up alliances and work together. The ABC creates valuable benefits to the membership through the online directory, business resources, advertising opportunities, member rewards, and event payment and registration. The ABC continues to enhance the site with the members in mind. www.abcdubai.com

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ABC EVENTS The American Business Council actively represents U.S. business interests in Dubai and the Northern Emirates, while maintaining strong ties with the leaders of the communities in which their members live and work. The ABC holds regular meetings, luncheons and events to facilitate networking and collaborations among members throughout the year. These pictures depict some of the diverse activities and special events organized by the American Business Council in 2013.

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2013 Board of Directors

Ramsey Jurdi President

Bilal Sabouni Executive Vice President

John Lancia Board Member

Kathleen Jones Board Member

Sammy Bousaba Vice President of Programs

Jimmy Larsen Vice President of Membership

Anne Jafery Board Member

Rania Risk Board Member

Matthew Ficco Vice President Financial Affairs & Treasurer

Charles Laubach Vice President of Legal Affairs & Secretary

Frank Kemnetz Board Member

Robert Bannerman Principal Commercial Officer U.S. Consulate Dubai

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John Podgore

Ex-Officio

Cara Nazari Executive Director

Thank You to Our Supporters President’s Club 2013

Vice President’s Club 2013

Strategic Partner

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Statement of Comprehensive Income For the year ended in 31 December 2013

Membership fees Special Events Interest income Gain on disposal of equipment

Staff costs Administrative expenses Special events Rent Depreciation Loss on disposal of equipment

PROFIT FOR THE YEAR

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2013 AED ───────

2012 AED ───────

2,143,568.25 996,537.75 9,223.58 -

1,906,013.00 758,011.00 5,243.00 13,000.00

─────── 3,149,329.58

─────── 2,682,267.00

───────

───────

1,247,627.92 448,452.27 733,083.57 153,368.25 13,721.53 570.53

1,066,830.00 605,742.00 674,028.00 224,175.00 7,822.00

─────── 2,596,824.07

─────── 2,578,597.00

───────

───────

552,505.51

103,670.00

═══════

═══════

Statement of Financial Position For the year ended in 31 December 2013

Non-current assets Equipment

Accounts receivable and prepayments Cash and cash equivalents

Fund balance Retained surplus Non-current liability Employees' end of service benefits

2013 AED ───────

2012 AED ───────

49,261.00

15,410.00

───────

───────

131,883.54 2,994,096.15

76,246.00 2,024,925.00

─────── 3,125,979.69

─────── 2,101,171.00

─────── 3,175,240.69

─────── 2,116,581.00

═══════

═══════

1,303,181.60

750,677.00

───────

───────

197,643.96

143,723.00

Current liability Accounts payable ad accruals

───────

───────

1,674,415.13

1,222,181.00

Total liability

─────── 1,872,059.09

─────── 1,365,904.00

─────── 3,175,240.69

─────── 2,116,581.00

═══════

═══════

The complete set of 2013 financial statements including notes to the accounts and the auditor’s report are available for viewing by members at the American Business Council of Dubai & the Northern Emirates registered office.

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The American Business Council o f

D u b a i

&

t h e

N o r t h e r n

E m i r at e s

Chapter, U.S. Chamber of Commerce

PO Box 37068, Dubai, UAE Tel: +971 4 379 1414 • Fax: +971 4 379 1515 www.abcdubai.com • info@abcdubai.com