The agreements came on the sidelines of the World Governments Summit 2024
The UAE has signed several deals with Arab countries to avoid double taxation and boost investments, as part of its efforts to diversify its economy and enhance regional cooperation.
The agreements were signed on the sidelines of the World Governments Summit 2024. WGS took place in Dubai from February 12 to 14 under the theme of “Shaping Future Governments”.
The UAE Ministry of Finance signed agreements to boost investments and avoid double taxation with Kuwait, Bahrain, and Egypt. The pacts aim to eliminate:
- Double taxation
- Additional taxes
- Indirect taxes
- Tax evasion
As well as addressing the challenges of cross-border trade and investment flows.
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The agreements also account for tax challenges and keep pace with global changes in various aspects. From the economy and financial sectors to new financial instruments, and transfer pricing mechanisms. Moreover, it will encourage the exchange of goods and services and the movement of capital.
“These agreements stem from the Ministry of Finance’s commitment to achieving transparency and fairness and enhancing the national economy through strengthening strategic partnerships with various countries and the World Bank, and expanding the frameworks of cooperation in different economic and financial fields, contributing to the increase of opportunities and development of joint investments,” said Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs.
Agreement with the World Bank Group
The UAE also signed a second renewal agreement for the payable advisory services agreement with the World Bank Group. It serves as an umbrella for technical support services agreements to be signed between federal and local entities in the country to benefit from the technical support services provided by the World Bank.
The agreement marks the second renewal of the pact that was initially signed in 2014 and first renewed in 2019.
“Partnership plays a critical role in turning our ambitions into action,” said Ajay Banga, President of the World Bank Group. “This new chapter of collaboration between the World Bank and the UAE. Because it is a step forward in advancing knowledge that is critical to delivering impact for the UAE and globally.”
The deals with the Arab countries were welcomed by their respective ministers. In which they highlighted the importance of enhancing economic, trade, and investment cooperation with the UAE.
Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy of Bahrain said the agreement with the UAE comes within the framework of joint efforts to advance economic, trade, and investment cooperation between the two countries.
Dr. Anwar Al Mudhaf, Minister of Finance and Minister of State for Economic Affairs and Investments of Kuwait said the agreement with the UAE is expected to positively impact the citizens and investors from both countries.
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Egypt’s Minister of Finance, Dr. Mohamed Maait, said the supplement agreement to eliminate double taxation and prevent tax evasion and also seeks to enhance collaboration opportunities for joint investments.
The UAE has been supporting various projects and programs in the Arab region and beyond. Especially in the fields of health, education, infrastructure, and renewable energy.
