During the World Governments Summit (WGS) 2024, held from 12th to 14th February in Dubai under the theme of “Shaping Future Governments”, the UAE Ministry of Finance signed landmark agreements concerning investment encouragement and protection, as well as double taxation avoidance. These agreements were signed with the State of Kuwait, the Kingdom of Bahrain, the Arab Republic of Egypt, and the World Bank.
The primary objectives of these agreements are to promote developmental goals, diversify UAE’s national income sources, and prevent issues such as double taxation, additional taxes, indirect taxes, and tax evasion. They also aim to address challenges related to cross-border trade and investment flows. Additionally, the agreements are designed to tackle tax-related challenges and keep up with global economic and financial changes, emerging financial instruments, and transfer pricing mechanisms. Furthermore, they seek to facilitate the exchange of goods and services and the movement of capital.
Commitment to transparency and fairness in economic partnerships
Mohamed Hadi Al Hussaini, UAE minister of State for Financial Affairs, said, “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 joint cooperation in different economic and financial fields, contributing to the increase of opportunities and development of joint investments.”
He added, “These agreements are significant; besides their inclusion of cooperation in the tax fields, increasing investment opportunities and encouraging trade exchange, they come during the World Governments Summit 2024, the leading global platform aimed at exchanging expertise, ideas, and government experiences, anticipating the future, and promoting growth and prosperity in the world.”
UAE Ministry of Finance and World Bank renew advisory services agreement
The Ministry of Finance in the UAE has entered into a second renewal agreement with the World Bank Group. This agreement pertains to the payable advisory services agreement between the UAE and the International Bank for Reconstruction and Development. The purpose of this agreement is to establish a framework for technical support services agreements between federal and local entities in the UAE, enabling them to access the technical support services provided by the World Bank. This is the second renewal of the agreement, which was originally signed in 2014 and first renewed in 2019. Moreover, the signing of the agreement was carried out by Mohamed Hadi Al Hussaini and Ajay Banga, president of WBG.
“Partnership plays a critical role in turning our ambitions into action,” said Banga. “This new chapter of collaboration between the World Bank and the UAE is a step forward in advancing knowledge that is critical to delivering impact for the UAE and globally.”
Longstanding relations between UAE and Bahrain
For his part, Shaikh Salman bin Khalifa Al Khalifa, minister of Finance and National Economy of Bahrain, highlighted the longstanding and significant relations between Bahrain and the UAE. He emphasized the importance of continuing to strengthen existing collaborations and establish new partnerships, particularly in the financial, economic, and investment sectors. He highlighted that the agreements on investment encouragement and protection, as well as double tax avoidance, are part of joint endeavors to promote economic, trade, and investment cooperation between the two nations.
Economic and financial cooperation between UAE and Kuwait
Dr. Anwar Al Mudhaf, minister of Finance and Minister of State for Economic Affairs and Investments of Kuwait, noted that the agreement is a component of the economic and financial cooperation between the UAE and Kuwait. Also, he expressed optimism that it would have a positive impact on the citizens and investors of both countries.
Ongoing cooperation between UAE and Egypt
Dr. Mohamed Maait, minister of Finance of Egypt, highlighted the ongoing cooperation between the UAE and Egypt, particularly in areas such as taxation, economics, finance, and investment. He highlighted that the supplementary agreement on double tax avoidance and the prevention of income tax evasion is part of the effort to enhance collaboration opportunities for joint investments.
Double tax avoidance agreement
During the WGS 2024, the Ministry of Finance of the UAE signed a double tax avoidance agreement with Kuwait, which covers taxes on income and capital and aims to prevent tax evasion. The agreement was signed by Mohamed Hadi Al Hussaini and Dr. Anwar Al Mudhaf.
Two agreements with Bahrain
Additionally, the UAE Ministry of Finance signed two agreements with the Kingdom of Bahrain. The first agreement is a double tax avoidance agreement, and the second is an agreement on investment encouragement and protection. The agreements were signed by Mohamed Hadi Al Hussaini and Shaikh Salman bin Khalifa Al Khalifa.
Protocol signed between UAE and Egypt
Furthermore, the UAE Ministry of Finance signed a protocol with the Arab Republic of Egypt as a supplementary agreement on double tax avoidance and the prevention of income tax evasion. The agreement was signed by Mohamed Hadi Al Hussaini and Dr. Mohamed Maait.
Expanding international and Arab relationships
The signing of these agreements demonstrates the UAE Ministry of Finance’s commitment to expanding the country’s international and Arab network of relationships and enhancing economic and investment cooperation with various countries worldwide. It is also aligned with the ministry’s efforts to safeguard UAE’s investments from non-commercial risks, facilitate profit and return transfers, and establish dispute resolution mechanisms.
Wide-reaching network of investment agreements
To date, the UAE Ministry of Finance, representing the UAE, has signed 143 double tax avoidance agreements and 112 agreements on investment encouragement and protection. Collectively, these agreements provide a legal framework that safeguards UAE’s investments globally.
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