UAE and Opec Fund discuss ways to bolster cooperation

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, recently met with Dr Abdulhamid Alkhalifa, Director-General and Chief Executive Officer of the OPEC Fund for International Development (the OPEC Fund) and his accompanying delegation at the Ministry of Finance’s (MoF’s) headquarters in Dubai.

The meeting sought to discuss means of enhancing and bolstering cooperation between the UAE and the OPEC Fund.

The meeting was attended by Ali Abdullah Sharafi, Assistant Undersecretary of the International Financial Relationship Sector at the Ministry of Finance, Ahmad Khaled Bin Sulaiman, Director of Federal Debt Management at the Ministry of Finance, and Abdullah Ahmed Al Obaidly, Director of Relations and International Financial Organisations. From the OPEC Fund, Tarek Sherlala, OPEC Fund Assistant Director-General of the Financial Operations Department, and Martine Mills Hagen, Head of Funding at the OPEC Fund attended the meeting.

During the meeting, Al Hussaini emphasised the UAE’s keenness to contribute effectively to support the Fund’s strategic plans and directions. “The UAE is committed to coordinating and working with various regional and international financial bodies, especially the OPEC Fund for International Development, to devise economic projects and provide development and technical programmes and aid to help achieve inclusive and sustainable economic development.”

The meeting also discussed a number of relevant developments, including the UAE’s issuance of sovereign bonds and investment aspects within the Fund’s strategic framework, ensuring that finance resources are diversified to include financing capital market loans. The meeting also deliberated means of providing training and support for UAE citizens and university students to strengthen their skills in this sector.

During the meeting, Director-General of the Organisation of the Petroleum Exporting Countries (OPEC) Fund previewed the latest plans and projects of the OPEC Fund for International Development.

Director-General also noted that during the 2021-2023 work plan, the Fund will continue to support partner countries based on its strategic directions, while focusing on transportation, agriculture, energy, trade finance, as well as private sector lending, including banking and financial services. The OPEC Fund for International Development is a multilateral development finance institution established in January 1976 and managed by finance ministers of member states, with the aim of providing aid to developing countries.

Earlier last month the Ministry of Finance (MoF) has launched the digital public consultation initiative on its website and the UAE Government portal, ahead of the official release of Corporate Tax relevant legislation.

The initiative aims at consulting with the business community and relevant stakeholders to acquire their views and comments on Corporate Tax, to refine and implement proposed UAE Corporate Tax regulations.

The digital public consultation initiative reflects MoF’s firm belief in the importance of consulting the business community, and is part of its commitment to help the UAE achieve its strategic objectives, thereby cementing the country’s position as a leading hub for business and investment.

Younis Haji Al Khoori, Under-Secretary of Ministry of Finance, noted that the initiative will assist the MoF in further refining and implementing the proposed UAE Corporate Tax regulations, by bolstering means of communication with the business community and stakeholders, as they play a key role in drawing government financial policies.

“The Ministry of Finance welcomes comments until May 19 by using the online Corporate Tax Submission Public Consultation Form, which can be found on the ministry’s website and the UAE Government portal.”

“Since the announcement in January 2022, the Ministry of Finance continued working on the design and implementation of the UAE Corporate Tax regime to ensure that it incorporates best practices globally and minimises the compliance burden for UAE businesses,” Al Khoori said.

The Organisation of the Petroleum Exporting Countries (OPEC) has reaffirmed its decision for upward adjustment of the monthly overall production by 0.432 million barrels per day (mb/d) for the month of June 2022.

This was announced by the end of the 28th OPEC and non-OPEC Ministerial Meeting, held via videoconference on 5th May. It was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market. It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic. The 29th OPEC and non-OPEC Ministerial meeting will be held on 2 June 2022.