Saudi, UAE to Enhance Collaboration for Boosting Their Economies
by United VAT
Oct 14, 2017 Oct 14, 2017
by United VAT
Posted on Oct 14, 2017
The UAE and Saudi Arabia are intensifying cooperation to boost investment and trade with select initiatives identified, top government officials said. Exemptions will be given to Saudi firms investing in Abu Dhabi to boost cooperation between the two countries.
Both the UAE and Saudi Arabia are intensifying the cooperation amongst themselves in order to boost investment and trade by undertaking selective initiatives. It is being said by the top government officials that exemptions will be given to Saudi firms investing in Abu Dhabi to boost cooperation between the two countries.
Both the countries are making a continuous effort of diversifying their economies due to the volatility in oil prices and the political situation globally. They have launched many initiatives identifying eight sectors as priority areas including, transport, health, Oil and Gas, and SMEs (small and medium enterprises).
Sultan Bin Saeed Al Mansouri said that “We are witnessing an important era in the GCC, of a partnership between Saudi and the UAE. There is a proactive focus to work together bilaterally and we need to enhance economic cooperation and open more channels of investment.”
In Saudi Arabia number of sectors has been opened to attract foreign investment as part of Saudi Economic vision 2030.
Pointing out at the common aspects included in the development of both the economies Al Mansouri said “This harmony of visions and policies provides a solid foundation for further progress in trade and investment to enhance cooperation between the two countries.”
In the past six years there was a significant increase of 30 percent in bilateral non-oil trade between the two countries jumping from Dh55 billion in 2011 to more than Dh71.5 billion last year.
Further, Mansouri added that UAE has always been on top of the investor’s list in Saudi Arabia. Its amount of investment in Saudi Arabia totals about Dh30 billion whereas Saudi investments in the UAE stand at Dh16.5 billion.
Chairman of Abu Dhabi Department of Economic Development, Saif Al Hajeri, stated that Saudi investors will get many exemptions if they invest in Abu Dhabi and the exemptions will be related to land, lease and rents.
Moreover, he informed that Saudi companies will get a 15 percent discount in rents and lease land in Kizad (Khalifa Industrial Zone). In order to ensure fast-track processing of approvals, the department will also open a fast track window for approvals for businesses coming to Abu Dhabi from Saudi Arabia.
In order to facilitate more cooperation between the two countries, three agreements were signed between them during the forum including a MoU to boost business activity, joint investments in agriculture and an agreement related to corporate governance between UAE-based Hawkamah and Saudi governance center.
According to the tax experts in UAE 5% VAT will not be levied on amount withdrawn from ATMs of banks other than their own bank - but only on the Dh2 fee will be charged by the banks.
Declining the news of the delay in implementation of VAT in UAE Khalid Ali Al Bustani, director general of the Federal Tax Authority, says VAT will start as planned on Jan 1 2018.
Executive Regulations for the Federal Decree-Law No. (8) of 2017 on Value Added Tax, VAT were signed and approved by the Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE.
