With one of the most diversified economies in the Middle East, Dubai’s attractive investment environment and broad-based economy – which in 2016 contributed 37.2% to the UAE’s total non-oil GDP – continues to attract major international investors. Growth is being underpinned by the authorities’ vision as laid out in the Dubai 2021 strategy, with various sectors including wholesale and re
This chapter contains an overview of the tax framework in which local and foreign investors operate, including a look ahead at the GCC value-added tax (VAT) framework that is being created and the considered implementation of a corporate income tax. This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.…
The UAE federal government has exclusive jurisdiction to legislate in relation to UAE taxes. However, no federal tax laws have been established to date. Instead, most of the emirates enacted their own general income tax decrees in the 1960s. In practice, however, the tax decrees have not been enforced to date and, consequently, tax is generally not levied under the decrees on companies operating in…
Financial services in particular is one non-oil area where the emirate is starting to pull ahead, with recent growth in the Islamic financial services segment fuelling the emirate’s ambition of becoming the knowledge-based capital of the Islamic economy in the future. Meanwhile, Dubai’s real estate and construction sectors, which were badly affected by the 2008 financial meltdown, are once aga
As a business centre for the region, the UAE continues to be highly relevant and attractive for investors for a number of reasons, including infrastructure, logistics and access to skilled labour. According to the PwC and World Bank “Paying Taxes 2016” study, the UAE is ranked joint first in the world in terms of the ease of paying taxes. In a region where more than 50% of government revenues come…
The global economic crisis has placed a greater importance on the need for strong corporate governance, internal auditing and risk management procedures. Sound corporate governance is a crucial factor in sustaining economic growth, and as conditions change, so too must risk management priorities. Thus, internal auditors should first consider whether they are aligned with the strategy and direction…
This chapter contains an overview of the tax framework in which local and foreign investors operate, including an outline of the incentives available in the free zones and a look at the opportunities in the Dubai International Financial Centre. This chapter contains a viewpoint from Mahmud Merali, Managing Partner, MERALI’S.…
Already a regional and global centre for business and finance, Dubai’s reputation has been bolstered by the MSCI’s decision to upgrade the UAE from frontier to emerging market status in 2014, while the emirate’s successful Expo 2020 bid is expected to generate myriad opportunities for private investors across a range of sectors. Construction is thriving once again, driven in large part by st
The federal government of the UAE has not promulgated any tax laws and, as a result, much of the existing tax structure in the emirates has been established by the individual emirates, which have issued varying corporate tax decrees. While this seems like it would lead to confusion and hamper the business environment, in practice, taxes are only imposed on oil- and gas-producing companies (at rates…
Over the past decade, Dubai has made great strides in opening up new avenues for economic growth, becoming a strategic hub for international businesses to reach nearby emerging markets. This development has been guided by an economic diversification plan focused on key sectors that can accelerate growth, not only in Dubai and the UAE, but also the entire region. Financial Planning The Dubai International…
