UAE’s non-oil trade reaps benefits of leadership’s strategic approach

Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the UAE’s non-oil foreign trade is continuing to reap the benefits of the visionary leadership’s strategic approach, as well as its directives to promote trade and investment openness internationally, expand its network of international trading partners, and solidify its role as a gateway for goods and commodities between the four corners of the world.

These successes are highlighted by the country’s strategic plans and executed through the Comprehensive Economic Partnership Agreement (CEPA) Programme with nations of strategic significance on the international trade map.

“The country’s non-oil foreign trade achieved an unprecedented milestone in the first half of 2023, exceeding Dhs1.239 trillion, a growth of 14.4 per cent compared to the same period in 2022. This upward trajectory has been maintained quarterly and semi-annually since 2020,” Al Zeyoudi stated.

“The historic foreign trade figures recorded in the first half of this year align with the country’s signing of more CEPAs. Agreements with India and Israel came into effect in May 2022 and April 2023, respectively, and their tangible effects are evident in the volume of trade between the UAE and these two nations,” he added.

“The country’s foreign trade will continue to benefit from these CEPAs, and agreements with Turkey and Indonesia are set to be implemented in early September. These will significantly influence our foreign trade with these strategically significant nations on the world trade map. Other agreements have been signed and are set to be implemented later, and others are being successfully negotiated and are poised for imminent signing,” he further added.

Expanding foreign trade is a crucial objective of the UAE, in line with its plans to diversify its economy and double national GDP while prioritising sectors that focus on innovation, knowledge, advanced technologies and the future economy, Al Zeyoudi stressed, highlighting the noticeable increase in UAE’s non-oil exports in the first half of 2023, which surpassed the whole of 2017 and is near the figure for 2018, underscoring the rapid pace of progress of the country’s economic diversification plans.

The UAE will increasingly prioritise trade in services in the upcoming period to boost the export of services around the world through an expanding network of trading partners, he said in conclusion.

Dubai Chambers: Dubai Chambers has announced that more than 2,000 businesses have participated in a series of workshops designed to raise awareness on Corporate Tax.

The sessions were organised as part of Dubai Chambers’ efforts to enhance the local business community’s understanding of the latest legal developments and support companies in adequately preparing for compliance with the UAE’s Corporate Tax Law.

Since the issuance of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Dubai Chambers has organised a total of 15 educational and awareness workshops on Corporate Tax in cooperation with key government agencies, as well as leading law and consulting firms.

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said, “Dubai has one of the world’s most dynamic and resilient economies. We believe the competitive Corporate Tax rate and flexible regulations will allow businesses to grow and invest for the future while supporting Dubai’s economic diversification agenda.

Our Corporate Tax workshops are designed to educate the emirate’s business community on matters that directly impact their operations and investments to ensure they are taking full advantage of the various benefits and relief available to them, while at the same time preparing them to meet their obligations and comply with federal and local tax laws.”

The workshops highlighted the legislative basis of the new tax regime and its implications for companies doing business in the UAE.

The most recent workshop was conducted earlier this week in collaboration with Hadef and Partners, an independent UAE law firm. Previous sessions were hosted in partnership with government entities including the UAE Ministry of Finance and the Dubai Department of Finance, together with leading firms such as Al Tamimi & Co and PwC Middle East.

The introduction of corporate tax helps meet tax transparency and compliance requirements for international corporations and further strengthens the UAE’s position as a global hub for business and investment.

The Corporate Tax Law came into effect on 1st June 2023 and is applicable for financial years commencing on or after 1st June 2023. According to the law, a standard tax rate of 9% will be levied on taxable business profits of more than Dhs375,000. Profits that do not exceed this threshold will be taxed at a rate of 0% in a move designed to support the growth of small businesses and startups.  The sessions were organised as part of Dubai Chambers’ efforts to enhance the local business community’s understanding of the latest legal developments and support companies in adequately preparing for compliance with the UAE’s Corporate Tax Law.

WAM