WEEKLY BUSINESS ROUNDUP - 23rd April 2023 – 29th April 2023

UAE Banks Federation approves 2023 strategy for banking sector developments

During the UAE Banks Federation’s (UBF) Annual General Meeting (AGM), the audited financial statements and the auditors’ report for 2022 were approved. The objective and strategic plans for 2023 were approved during the AGM and aim to develop the banking sector. The UBF is committed to ensuring development of the banking sector aligned with international regulations and best practices.

 

UAE and Cambodia finalize terms for CEPA

UAE and Cambodia have finalized the terms of the Comprehensive Economic Partnership Agreement (CEPA) ushering in an era of trade, investment & economic cooperation.  The agreement will increase and diversify bilateral trade by substantially eliminating tariffs, reducing non-tariff trade barriers, and promoting trade in goods, services, and investment. UAE and Cambodia economic relations saw non-oil trade exceed US$401 million in 2022, marking a growth of 31% compared to 2021. CEPA will create opportunities in exports, machinery, lubricants, grains, fruits, meat, automotive parts and more.

 

UAE to participate in Joint Annual Meeting of Arab Financial Institutions

UAE participated in the Joint Annual Meeting of Arab Financial Institutions to discuss means of overcoming development challenges faced by the region. Key aspects of financial and economic development were discussed with an aim to build sustainable development plans and strategies.

 

MoF issues decisions on permanent establishment for non-resident persons

The Ministry of Finance (MoF) has issued Ministerial Decision No. 83 of 2023 on situations where the presence of natural persons in the UAE could/could not give rise to a permanent establishment for the non-resident person (foreign company), including if their presence is due to unforeseen temporary exceptional circumstances, and where they have no intention of staying in the UAE once these circumstances cease. The Ministry also issued Ministerial Decision, No. 82 of 2023 specifying the taxable persons that are required to prepare and maintain audited financial statements are those that derive Revenue exceeding AED 50 million and Qualifying Free Zone Persons.

 

Dubai reported to be the next global hedge fund hub

A report titled ‘Dubai: The next global hedge fund centre – opportunities and outlook’ highlights Dubai’s enhanced significance as a hub for hedge funds and alternative investments. Aligned to this momentum DIFC is in discussions with over 60 global hedge funds that are keen to expand their reach in the financial freezone. In 2022, DIFC recorded 54% increase in the total number of hedge funds setting up within DIFC. Almost two-thirds of DIFC-based hedge funds originate from the US and UK, including two of the world's ten largest hedge funds.

 

Annual Investment Meeting 2023 highlights opportunities to drive FDI flows

AIM Global 2023 is scheduled to be hosted in Abu Dhabi from 8th to 10th May and will turn the spotlight on the global investment scene. The conference will serve as the perfect playing field for discussions on creating mechanisms and policies to stimulate FDI inflows that will drive sustainable economic growth. The event will be hosted under the theme “The Investment Paradigm Shift: Future Investment Opportunities to Foster Sustainable Economic Growth, Diversity and Prosperity.”

 

Abu Dhabi targets 24 million visitors by 2023

The Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) announced plans to attract more than 24 million visitors to the emirate by 2023. These figures follow an increase in Abu Dhabi’s tourism sector in 2022 as hotel occupancy rates hit 70% in 2022 – surpassing the Middle East average of 67%.

 

Sharjah Municipality channels USD 27mn to minimize fire risks in buildings

Sharjah Municipality announced AED 100 million with a focus on reducing the risk of fires in towers and buildings in the emirate. The funds are likely to be used for replacement of flammable aluminium facades in buildings to enhance the safety aspect for residents and professionals.

 

Ajman achieves 28% growth in 2022 rental deals

The Department of Municipality and Planning in Ajman reported an 28% increase in rental deals in 2022 amounting to AED512 million, compared to 2020. Finalized rental contracts saw a surge in 2022 compared to 2021 and 2020 showcasing residential contracts accounted for 65,087, commercial contracts were at 27,952, and investment contracts at 232.