WEEKLY BUSINESS ROUNDUP - 28th January 2023 to 3th February 2023

Digital economy in UAE likely to grow US$ 140 billion by 2031

Dubai Chamber of Digital Economy’s latest report reveals plans to boost the country’s digital economy. The national digital economy is expected to be worth US$ 140 billion in 2031 from US$ 38 billion as of January 2023. Aimed to position Dubai as a future digital capital, plans are underway to attract 300 digital startups and 100 tech experts by 2024. This will help in achieving the goal of doubling the contribution of the digital economy to the UAE’s GDP from 9.7% to over 20% by 2031.

 

UAE participates in 1st IFA Working Group meeting within G20 Finance Track

The UAE attended the first International Financial Architecture (IFA) Working Group meeting within the G20 Finance Track for 2023 to discuss global financial outlook including financial risks and opportunities. The meeting paved way for discussions around global challenges, managing global debt vulnerabilities to support LMICs and strengthening global financial resilience through sustainable capital flows. UAE reinforced the significance of multilateral coordination between development banks and other parties in the business landscape.

 

UAE announces major visa change, applicable to all nationalities

The UAE Federal Authority for Identity, Nationality, Customs and Ports Security (ICP) launched a new smart service which allows visitors to extend the validity of all types of visas issued to them for 60 days. It is important to note that this service can be availed only once before entering the country. The fee to extend visa validity is AED 200.

 

UAE committed to achieving sustainability for future generations

Marking the 26th UAE National Environment Day, the visionary leadership affirmed directing its priority towards protecting the environment and preserving natural resources. Under the theme “Towards a Sustainable Future” the leadership announced 2023 as the “Year of Sustainability” reinforcing the importance the country attaches to driving sustainability as a key prerogative.

 

MoF confirms Applicable Taxable Income Threshold for Corporate Tax

Following the issuance of the Federal Decree Law on the Taxation of Corporations and Business (the “Corporate Tax Law”) in December 2022, Ministry of Finance has published the approved Cabinet Decision 116 of 2022 on the Applicable Taxable Income Threshold for Corporate Tax. Based on the Decision, 0% rate will apply to taxable income that does not exceed AED375,000 during the same tax period regardless of the number of businesses or business activities the taxable person is engaged in during that period. A 9% rate will apply to taxable income exceeding AED375,000 during the relevant tax period.

 

Deadline for rectifying private sector’s unlimited -term employment contracts to fixed-term extended

The Ministry of Human Resources and Emiratisation (MoHRE) announced the extension of the deadline for private sector employers to rectify unlimited-term employment contracts of their employees to fixed-term contracts. The deadline has been extended to 31st December 2023 instead of 2nd February 2023. This move highlights the authority’s role in providing companies an environment that supports ease of doing business.

 

14.36 million international visitors reported in Dubai in 2022

As per Dubai’s Department of Economy and Tourism (DET) the emirate received 14.36 million international overnight visitors in 2022, recording 97% y-o-y growth from the 7.28 million tourist arrivals in 2021. Contributing to the goal of the Dubai Economic Agenda D33, the growth in tourism has helped Dubai scale regional and global tourism recovery levels.  The stellar growth recorded in visitor footfall in the emirate reflects Dubai’s efforts to cement its position as one of the most connected cities delivering top notch hospitality infrastructure and service levels.

 

Abu Dubai Customs, Dubai Chamber discuss support for private sector to boost competitiveness

Dubai Customs and Dubai Chambers met to discuss strategies to support private sector businesses in a bid to enhance the emirate’s economic competitiveness. Plans and programs were discussed including the electronic integration of services and the development of new services to empower the business landscape of Dubai across different sectors.

 

Dubai dhow trade records 12% growth in 2022

Established by Dubai’s Ports, Customs and Free Zone Corporation (PCFC), the Marine Agency for Wooden Dhows enabled the entry of 10500+ wooden dhows recording 12% year-on-year growth in 2022. The wooden dhows ferried 1.7 million metric tonnes of merchandise from countries across MENA and beyond. The Marine Agency has brought into play initiatives for faster entry and exit procedures which increases trade volume. Dubai has increased the number of dhow movements from 9000 in 2021 to 10500 in 2022 consolidating its position on the global dhow trade map.

 

Abu Dhabi Chamber launches new strategy for 2023 – 2025

The Abu Dhabi Chamber of Commerce and Industry (ADCCI) launched a new 3-year strategy spanning from 2023 to 2025 - focused on serving the economy and strengthening its stance as the “Voice of the Private Sector”. This strategy seeks to position Abu Dhabi as the first destination of choice for doing business in the MENA region by 2025. One of the primary strategic objectives for the Chamber between 2023 – 2025 is addressing the needs of the private sector and enabling communication between the private sector and the Abu Dhabi government.