Vice President and Ruler of Dubai, Sheikh Mohammed bin Rashid, attends the launch of the Emirates Development Bank. The bank will stimulate various sectors, back 13,500 companies and create 25,000 jobs. Wam
Joining Sheikh Mohammed bin Rashid at the launch were Sheikh Mansour bin Zayed, Sheikh Saif bin Zayed and Dr Sultan Al Jaber. Wam
The Emirates Development Bank will provide Dh30 billion in financing over the next five years to support the UAE's efforts to more than double the size of the industrial sector. Wam
The Emirates Development Bank will support the role played by small and medium enterprises in shaping the UAE's national economy, Sheikh Mohammed said. Wam
The Emirates Development Bank will provide Dh30 billion ($8.17bn) in financing over the coming five years to support the UAE's efforts to more than double the size of the industrial sector in the coming decade.
The announcement was made on Monday by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.
The funds will help create and back 13,500 new companies in various sectors and generate 25,000 jobs, Sheikh Mohammed said on Twitter as he unveiled the initiative.
In attendance were Deputy Prime Minister and Minister of Interior Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed and Minister of Foreign Affairs and International Co-operation Sheikh Abdullah bin Zayed.
The EDB strategy, which is aligned with the Ministry of Industry and Advanced Technology, will fund industries such as health care, infrastructure, food security and technology.
"Advancing the national economy is a top priority that requires a joint effort of all our economic entities in the coming phase,” said Sheikh Mohammed.
“We must adopt a distinctive vision that meets global trends and sustains development to maximise the industrial sector’s revenue and boost the broader economy.”
The EDB is a key driver of the national economy. Through its financial backing, it will support the role played by small and medium enterprises in shaping the UAE's national economy, said Sheikh Mohammed.
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, said on Twitter that the EDB strategy was "an additional ambitious engine for the development of the national economy" and a major supporter of companies and SMEs.
"We are keen to support exceptional initiatives and creative ideas that adopt industry and advanced technology that meets our future development priorities," he said.
Last month, the UAE's leadership announced a new industrial strategy named Operation 300bn that aims to more than double the industrial sector's contribution to the country’s economy.
Overall, Operation 300bn will boost the industrial sector's contribution to Dh300 billion by 2031, from Dh133bn currently.
The initiative is being led by the Ministry of Industry and Advanced Technology.
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of EDB, presented the bank’s strategy pillars and objectives on Monday, which are in line with the goals of Industrial Strategy 2021-2031.
"Through close collaboration, the Ministry of Industry and Advanced Technology and the Emirates Development Bank will extend support to large corporations, SMEs and entrepreneurs across various industries including health care, infrastructure, food security and technology,” he said.
The EDB will act as "a critical financial engine" in tandem with its continued mandate to provide Emiratis with housing finance, said Dr Al Jaber.
The Ministry of Industry and Advanced Technology has conducted workshops, met and held discussions with 200 stakeholders in the federal, local and private sectors to help to create its new strategy to boost manufacturing, he added.
The EDB strategy will help to hasten industrial development and the adoption of advanced technology while its funds will support entrepreneurs, start-ups and SMEs, he said.
The lender will seek to spur “innovation, with a focus on the industries our leadership have identified as critical to the nation’s long-term sustainable growth,” he said.
It will also provide supply chain support, project finance, long-term finance, business accelerators, equity capital finance and a business growth support fund.
The EDB will establish partnerships with UAE lenders to extend financial services to small and medium industrial companies and increase its direct financing by 73 per cent in 2021.
It will support priority sectors while also offering extensive financial solutions to underserved sectors.
Entrepreneurs of all nationalities in the UAE and SMEs owned by both citizens and residents can apply for finance, which will take the form of direct and indirect lending, as well as equity finance for start-ups.
The bank will launch a Dh1bn investment fund for start-ups and SMEs in 2022 and focus on industrial companies in critical sectors that need funds and investment.
The EDB has supported 550 companies and provided Dh1.8bn in business loans to SMEs since its inception. It has also provided housing loans worth Dh2.4bn.
As part of the overarching industrial strategy, a Make it in the Emirates campaign will showcase the benefits of being a manufacturer in the country, as well as build a reputation for quality.
Operation 300bn and Make it in the Emirates will boost job creation, stimulate research and development, boost competitiveness and increase self-sufficiency, which will enhance the resilience of the UAE's economy.
The industrial sector's R&D spending will increase to Dh57bn by 2031, more than doubling from Dh21bn. That will increase its contribution to gross domestic product to 2 per cent from 1.3 per cent.
“This announcement is a continuation of the UAE's vision to increase manufacturing’s economic contribution," said Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City.
"As a global industrial hub, we are proud to have contributed to this growth and look forward to seeing this new strategy turbocharge an advanced manufacturing sector that leverages solar power, artificial intelligence, robotics and 3D printing to enhance the UAE’s knowledge and innovation-based economy.”
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
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Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
not have been convicted of offences or crimes involving moral turpitude
be free of infectious diseases or psychological and mental disorders
have the ability to support its members and the foster child financially
undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
