The UAE and Costa Rica signed a comprehensive economic partnership agreement on Wednesday in a deal that will provide new investment opportunities in key sectors and boost trade ties between the two countries.
This pact between the trading partners will boost private sector collaboration and offer investors opportunities in priority sectors including logistics, energy, aviation, tourism and infrastructure development, state news agency Wam said in a report.
“We look forward to the impact this agreement will have on trade and investment ties between the UAE and Costa Rica,” President Sheikh Mohamed said in a post on X on Thursday.
“The UAE is committed to building bridges of friendship and co-operation with nations that share our vision of long-term prosperity.”
Non-oil trade between the UAE and Costa Rica exceeded $65 million in 2023, a 7 per cent increase from 2022 and up 31 per cent compared to 2021, Wam reported.
“This is the first agreement of its kind between Costa Rica and a country of the Middle East, aligning with our administration's strategic objective of expanding into new markets,” Costa Rica President Rodrigo Chaves Robles said.
“I firmly believe this economic partnership will unlock a myriad of trade and investment opportunities.”
This is the latest in a string of Cepa signings by the UAE, and follows the conclusion of negotiations for a deal with Kenya in February. That was aimed at providing further access to the high-growth African continent and expansion into sectors from food to technology.
The latest deal, the UAE's first with a country in Central America, “will kickstart a new era of economic collaboration between our nations, strengthen East-West supply chains and provide an important bridge into a rapidly developing region”, said Dr Thani Al Zeyoudi, Minister of State for Foreign Trade said.
He added bilateral trade between the UAE and Costa Rica “has been building impressively in recent years” and the new partnership would add momentum especially in sectors such as tourism, renewable energy, food security, information and communications technology and manufacturing.
The UAE is focused on boosting its non-oil trade with countries around the world as it seeks to diversify its economy and attract foreign investment.
The country will exceed its initial target of signing 26 Cepas because of its pace of work and interest from other countries, Dr Al Zeyoudi, told The National in March.
It aims to conclude another seven to eight new Cepa deals in 2024, said the minister.
The country is preparing the “final touches” for the official signing of Cepas that were concluded in the last quarter of 2023 and early this year including with the Republic of the Congo, South Korea, Colombia, Costa Rica, Mauritius and Kenya, the minister said at the time.
The UAE's non-oil foreign trade hit a record Dh3.5 trillion ($953 billion) in 2023, bolstered by its economic diversification plans, despite a decline in the international movement of goods and services.
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
Last-16 Europa League fixtures
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Heather, the Totality
Matthew Weiner,
Canongate
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
