WEEKLY BUSINESS ROUNDUP - 23rd July 2023 to 29th July 2023

UAE accounts for 57% of FDI projects in Arab countries in 2022 announced DHAMAN

The Arab Investment and Export Credit Guarantee Corporation (DHAMAN) witnessed 74% surge in the number of FDI projects coming to the Arab countries in 2022 - with 1617 projects driving 358% rise in investment costs totalling US$ 200 billion. UAE took the top spot with around 923 projects and renewable energy ranked first – among sectors - in terms of investment cost constituting 60% while the software sector led in terms of the number of projects, accounting for 23.4% of the total. Reports further revealed the cumulative value of these projects in the region over the past 20 years totalled $1.5 trillion, comprising 16,000+ projects that have created more than two million jobs.

 

Middle East financial markets to witness massive impact of AI & Blockchain

The International Data Corporation estimated that the Middle East will be spending US$ 3 billion on AI in 2023. The impact of AI and Blockchain on financial markets in the Middle East is expected to be massive backed by investment in transformative technologies which will change the dynamics of the financial landscape of the region. A recent report estimates the region will gain 2% of the total global benefits of AI by 2030, with the UAE experiencing the largest impact, amounting to approximately 14% of its 2030 GDP. 

 

CBUAE raises base rate by 25 basis points

The Central Bank of UAE plans to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points – from 5.15 to 5.40%, effective from Thursday, 27th July, 2023. This decision is a result of US Federal Reserve Board’s announcement on 26th July, 2023, to increase the Interest on Reserve Balances (IORB) by 25 basis points.

 

FTA to open up online requests for clarifications – regarding Corporate Tax registration

The Federal Tax Authority (FTA) will open up online requests for clarifications related to Corporate Tax registration via its EmaraTax digital tax services platform starting Tuesday, 1st August, 2023. The digital tax services can be accessed by filing and submitting a clarification request through the EmaraTax platform along with necessary supporting documents and by paying the required service fees. This move is a step towards strengthening compliance to corporate tax in the UAE.

 

UAE’s MoF releases schedule of administrative penalties for corporate tax violations

UAE’s Ministry of Finance issued Cabinet Decision No. (75) of 2023 regarding administrative penalties for violations related to the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law). The Cabinet Decision highlights the administrative penalties that will be imposed by FTA for violations related to the application of the Corporate Tax Law – effective as of 1st August 2023.

 

Executive Office of Anti-Money Laundering and Counter Terrorism Financing holds second National Risk Assessment workshop

The Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism (EO AML/CFT) commenced the second workshop of the UAE's 2022/23 Money Laundering/Terrorist Financing (ML/TF) National Risk Assessment (NRA) in collaboration with the World Bank Group. In an effort to formulate effective financial risk mitigation policies and procedures, relevant UAE authorities discussed and evaluated Money Laundering/Terrorist Financing (ML/TF) risks as part of a comprehensive process.

 

Dubai Chamber set to support 100 businesses in global expansion drive by 2024

Dubai International Chamber announced its strategy to extend support to 100 private sector businesses in their efforts towards global expansion – under the ‘New Horizons’ initiative. During a recent meeting, plans were revealed for upcoming roadshows to explore business opportunities in Asia, Europe, and East and West Africa later this year, as well as the Baltic region, ASEAN countries, Turkey, and other African markets during 2024. The New Horizons initiative aims to accelerate the international growth of member companies and drive Dubai’s goal of increasing non-oil foreign trade to AED2 trillion by 2026.

 

Dubai luxury property market keeps up fastest growth rate in H2 2023

As per industry reports demand for Dubai’s luxury properties will continue to remain strong in H2 2023. It is estimated Dubai will be among the fastest growing markets globally backed by the inflow of global millionaires. Recording 11.2% increase in capital value during the January-June period, industry analysts now expect 10% increase in prices of high-end units during the second half of 2023. Industry research reveals the prices of prime residential property in Dubai will increase between 6% to 7.9% in H2 2023 - marking the fastest pace in the world followed by Singapore and Bangkok.

 

More than 330 mn passengers ferried in the first six months of 2023 through Dubai public transport

Dubai public transport was used by approximately 330 mn riders between January to June 2023. This figure marks a rise from the 304.6 mn riders recorded in H1 2022. Ridership increased by 11% in the first half of 2023 in comparison with the same period in 2022. It is estimated around 1.86 million riders would have used various modes of transport including Dubai Metro, Dubai Tram, public buses, marine transport modes and taxis.