UAE Says it Seeks to Commit to Int’l Standards, Prevent Malicious Practices via Corporate Tax

The agreement of the UAE and Kuwait aims to encourage and facilitate cooperation in data and legislative regulations with the aim of enhancing the financial acumen of investors in both countries.  Asharq Al-Awsat
The agreement of the UAE and Kuwait aims to encourage and facilitate cooperation in data and legislative regulations with the aim of enhancing the financial acumen of investors in both countries. Asharq Al-Awsat
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UAE Says it Seeks to Commit to Int’l Standards, Prevent Malicious Practices via Corporate Tax

The agreement of the UAE and Kuwait aims to encourage and facilitate cooperation in data and legislative regulations with the aim of enhancing the financial acumen of investors in both countries.  Asharq Al-Awsat
The agreement of the UAE and Kuwait aims to encourage and facilitate cooperation in data and legislative regulations with the aim of enhancing the financial acumen of investors in both countries. Asharq Al-Awsat

Deputy Secretary of the Ministry of Finance Younis Al-Khoori said that the use of federal tax on companies as of June 2023 strengthens the UAE’s commitment to meet international standards for tax transparency and the prevention of harmful tax practices.

It is also an integral part in encouraging economic growth, attracting investment, and supporting fifty projects.

The total revenue collected from fees for services provided by the central government last year was 26 billion dirhams ($7 billion), while the value of revenues and amounts collected through e-dirham for 2021 was more than 14.33 billion dirhams ($3.9 billion), according to the Emirati official.

Commenting on the announcement of the introduction of the Central Corporate Tax, he explained that the announcement was a result of the Government strategy led by the Ministry of Finance to strengthen the state.

The purpose of the strategy is to reinforce the state’s commitment to meet international standards for tax transparency and the prevention of malicious tax practices, he continued.

Corporate taxation is based on international best practices that aim to strengthen the UAE’s position as a leading global hub for trade and investment, and to accelerate the country’s growth and strategic goals’ achievement.

In support of the state’s direction in improving and diversifying non-oil revenue sources, the corporate tax policy aims to diversify the state government’s revenue resources needed to create jobs, finance public spending, and improve capital infrastructure projects and the infrastructure for social services.

Al-Khoori added that corporate tax is an integral part of economic policies that support economic growth and attract investment, leading to the promotion of the country’s economic growth and support for fifty projects and other strategic goals.

He pointed out that the Finance Ministry had announced at the end of January 2022 that it would introduce a federal tax on business profits for the fiscal years beginning on or after June 1, 2023.

The corporate tax system used in the country is one of the most competitive in the world.

There the tax will be levied at a base rate of 9 percent and a profit of zero percent on taxable profits not exceeding 375,000 dirhams ($100,000) to support the SMEs.

Moreover, Boursa Kuwait and Kuwait Clearing Company signed a joint agreement of understanding with Abu Dhabi Securities Exchange (ADX) to standardize and define operational, administrative, and technical procedures.

The MoU also seeks to achieve effective cooperation with regards to listing, trading and joint central depository operations.

Under the terms of the agreement, the parties agreed to take necessary measures to encourage and facilitate cooperation in the areas of data exchange, the standardization of legislative regulations, and enhancing the financial acumen of investors in both countries.



Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
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Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)

State Street Global Advisors, a subsidiary of State Street Corporation, announced that Saudi Arabia’s Public Investment Fund (PIF) has invested SAR 750 million ($200 million) in the newly launched SPDR J.P. Morgan Saudi Aggregate Bond ETF.

According to a statement released by the company on Wednesday, this fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). It is listed in both the London Stock Exchange and Germany’s Xetra, offering investors the opportunity to track government and quasi-government bonds denominated in either the Saudi Riyal or the US Dollar, including sukuk (Islamic bonds).

This investment aligns with the objectives of Saudi Vision 2030, representing a significant step toward enhancing the international presence of Saudi Arabia’s financial markets and attracting foreign investments. The fund is available to investors across several European countries, including Austria, Denmark, France, Germany, and Italy.

Commenting on the investment, Yazid Al-Humaid, Deputy Governor and Head of MENA Investments at PIF, said: “The fund continues to create opportunities and enable access to diverse capital markets in the Kingdom. Investing in the first internationally listed Saudi fixed-income ETF underscores PIF’s commitment to deepening Saudi capital markets, attracting investors, and fostering partnerships across global financial centers.”

CEO of State Street Global Advisors Yi-Hsin Hung emphasized that the launch of the fund is a significant milestone in providing innovative opportunities for investors while contributing to Saudi Arabia’s economic growth.