WEEKLY BUSINESS ROUNDUP - 3rd December 2022 to 9th December 2022

Global government spending on clean energy transitions increases to USD 1.2 trillion since the pandemic

Global government spending supporting clean energy has increased to USD 500 billion as the rising energy crisis paves the way for new policies aimed at cutting reliance on fossil fuels. The total amount of investment support that governments have allocated to clean energy since the outbreak of the COVID-19 pandemic totals to USD 1215 billion – as per IEA’s Government Energy Spending Tracker, which encompasses 1 600 government financial measures from 67 countries passed since March 2020.

 

IATA: Airline industry cuts losses to US$ 9.7 billion

The International Air Transport Association (IATA) announced an upgrade for the industry’s 2022 financial performance as recovery of the airlines gained momentum. Airline industry losses are expected to reduce to -USD 9.7 billion (improved from the October 2021 forecast for an USD 11.6 billion loss) for a net loss margin of -1.2% which is a huge improvement from losses of USD137.7 billion (-36.0% net margin) in 2020 and USD 42.1 billion (-8.3% net margin) in 2021.

 

UAE takes the top spot in IMD World Talent Ranking 2022 in the Arab World

As per the IMD World Talent Ranking (WTR 2022), UAE ranked 1st in the Arab region and 21st globally - advancing two places - in terms of readiness to meet the needs of the labor market. UAE is one among the best countries in terms of readiness to meet the demands of the labor market for skills and expertise. Further to its advancement in the report, UAE has secured a place among the top ten countries in nine indexes, with the readiness factor seeing significant improvement, being ranked 7th globally and 1st in the Middle East and North Africa.

 

UAE’s non-oil foreign trade surges 19% by end of Q3 2022

UAE’s foreign trade ministry reported the country’s non-oil foreign trade grew by 19% by the end of Q3 2022 to amount to AED 1.637 trillion, compared to Q3 2021. The country's total non-oil foreign trade during 2022 is expected to cross AED2 trillion, by a large margin, compared to AED1.9 trillion by the end of 2021. UAE has built a resilient and sustainable economy where value of exports is estimated to amount to AED 275 billion at the end of Q3 2022 – marking 9% growth.

 

Dubai Government’s General Budget for 2023 – 2025 fiscal cycle approved with expenditures of AED 205 billion

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, has approved the Government of Dubai's general budget for the fiscal cycle of 2023-2025, with total expenditures of AED205 billion. The Budget reinforces Dubai’s determination to continue stimulating entrepreneurship, attracting FDI and cementing its position as a land of opportunity and innovation. 

 

Federal Decree Law on corporate tax issued

UAE issued Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (the “Corporate Tax Law”) subjecting businesses to UAE Corporate Tax (“Corporate Tax”) from the beginning of their first financial year that starts on or after 1 June 2023. The UAE’s Corporate Tax regime will levy a standard rate of 9% for taxable profits exceeding AED375,000. Profits up to and including that threshold will be taxed at 0% rate in a bid to support small businesses and start-ups.

 

First China – Arab Summit set to strengthen high-quality cooperation

UAE accounts for more than 60% of China’s exports to the region and China remains UAE’s largest trading partner. China and UAE’s political and economic relations have continued to gain momentum in the last few years and the first China-Arab summit will be an important milestone in the history of both countries trading dynamics.

 

Dubai’s winter campaign ‘Dubai Destinations’ returns to showcase attractions and experiences across the emirate

‘Dubai Destinations’ a collaborative campaign implemented by the creative arm of the Government of Dubai Media Office (GDMO) returns in 2022 to highlight attractions and experiences that strengthen Dubai’s position as a global destination of choice during the cooler months of the year.

 

DIFC based Fintech firms secure over AED 2 billion funding in the first 9 months of 2022

Dubai International Financial Centre (DIFC) announced the number of FinTech and innovation firms joining DIFC exceeded the total that established operations in 2021. As per DIFC FinTech Hive’s ‘2022 FinTech Report’ between January and September 2022 fintech firms in DIFC secured more than AED 2 billion of funding. Funding activity for FinTech nearly doubled in 2021 and start-ups in MENA raised USD 998 million in 2021, a 78% increase from 2020.

 

ADGM launches guiding principles on whistleblowing

Abu Dhabi Global Market (ADGM) published Guiding Principles on Whistleblowing reflecting the freezone’s emphasis on transparency, accountability, and market integrity within the centre. The Guiding Principles provide guidance to ADGM entities that must be considered while building and maintaining their whistleblowing frameworks.

 

24% increase recorded in the number of licenses issued in Ajman

The Department of Economic Development in Ajman recorded that the emirate witnessed a 24% increase in the issuance of new licenses compared to the same period in 2021 - totaling 5,299 new licences. The number of industrial licenses issued surged by 22% over the past 11 months underlining Ajman’s economic development and growth.