WEEKLY BUSINESS ROUNDUP - 12th August 2024 – 18th August 2024

Business travel in MENA rebounds with 11.2% growth projection for 2024

Business travel in the MENA region is witnessing a rebound. UAE constitutes almost 14.5% of the region’s total business travel. As of 2023, the region surpassed pre-Covid spending levels hitting USD 17 billion in business travel expenditures. It is further estimated that the Middle East’s business travel industry will grow at 11.2% in 2024. Globally, the business travel segment is likely to reach USD1.48 trillion in 2024.

 

Reports reveal shift in UAE’s status as long-term base for UHNWI

Millionaire migration is surging globally, and the UAE is expecting a remarkable influx from across the globe. Ultra High Net Worth Individual (UHNWIs) are demonstrating long term commitment to be based out of the country. There has been a clear shift in UHNWIs transitioning from owning some assets in the UAE to increasing their local asset exposure and fostering key business relationships with in-market stakeholders like bankers and other service providers.

 

UAE set to drive transformation within the logistics sector

Cost related challenges in the last-mile delivery segment within the e-commerce sector is likely to transform the UAE and GCC’s logistic sector as businesses explore efficient and cost-effective local alternatives. The GCC region is projected to witness 10% growth annually in the logistics sector and is estimated to reach a value of USD 47 billion by 2029. 

 

UAE clarifies corporate tax payment rules

The UAE’s Federal Tax Authority (FTA) issued clarification on Corporate Tax payment rules in the UAE. FTA confirmed that the first Tax Period of a newly established company, in respect of a juridical person subject to Corporate Tax, is determined by the first Financial Year, as stipulated under the Commercial Companies Law. The Corporate Tax Law applies to Tax Periods commencing on or after June 1, 2023, and the Tax Period for the Taxable Person is the Financial Year or part thereof for which a Tax Return is required to be filed.

 

Dubai Chamber reports India, Pakistan, Egypt lead international investment in H1 2024

It is reported 7,860 new Indian companies joined the Dubai Chamber closely followed by 3968 new companies from Pakistan and 2355 new companies from Egypt in H1 2024. Dubai Chamber of Commerce reported India, Pakistan and Egypt are leading in the space of international investment. A sectoral distribution of the companies highlighted that majority constituted companies from trade and repairing services sector accounting for 41.5% of the total. 

 

Dubai private jet services mark 7% increase

Mohammed bin Rashid Aerospace Hub (MBRAH) at Dubai South reported increase in private jet usage. There were 8,472 private jet movements in H1 2024, marking 7% increase over the same period in 2023. Approximately 18000 private jet movements is projected by the end of 2024. These figures reinforce the growing maturity of the business aviation ecosystem. 

 

Abu Dhabi’s ADGM issues 1,271 new licenses and 20 FSPs in H1 2024

It is reported Abu Dhabi Global Market (ADGM) issued 1271 licenses in H1 2024 marking 20.5% increase compared to the same period in 2023. Further, ADGM reported 90% growth in granting new Financial Services Permissions (FSP) which have taken their number to 42 currently. In total 2088 companies operate at ADGM reflecting 31% increase compared to H1 2023. 

 

Abu Dhabi real estate attracts 225% jump in foreign investment in H1 2024

Abu Dhabi Real Estate Centre (ADREC) reported 225% increase in foreign direct investment (FDI) in H1 2024 compared to the same period in 2023. Abu Dhabi attracted AED3.28 billion in real estate investments during H1 2024, with 971 individual investors from 75 countries contributing.

 

Abu Dhabi expands list of activities covered under Freelance License

The Abu Dhabi Department of Economic Development (ADDED) has increased the number of business activities that can be conducted under the emirate’s Freelance Professional Licence to 100. Further ADDED’s Abu Dhabi Business Centre (ADBC) has added 30 new areas that are now eligible to be carried out independently under the licence framework.