June 2022 / United Arab Emirates

21 Giugno 2022

Abu Dhabi to launch new industrial strategy: Department of Economic Development

ABU DHABI, 21st June, 2022 (WAM) -- Mohamed Ali Al Shorafa Al Hammadi, Chairman of the Abu Dhabi Department of Economic Development, announced that Abu Dhabi will launch a new industrial strategy in two weeks, which will include four strategic pillars.

In his statement to the Emirates News Agency (WAM) on the sidelines of the "Make it in the Emirates" Forum held in Abu Dhabi, Al Hammadi said the leadership’s vision and directives include capitalising on the achievements of the country's industrial sector.

Abu Dhabi’s industrial sector is the second leading sector in terms of contributing to the emirate's GDP, valued at AED85 billion in 2021, he added, stressing that the forum will highlight the sector's attractiveness, including all its competitive advantages and flexible legislative infrastructure, which have attracted investors from around the world to the UAE.

Abu Dhabi offers a wide variety of support programmes to the sector, such as reducing electricity tariffs and allocating industrial land, enhancing the emirate's competitiveness, he further added.

Sameh Al Qubaisi, Director-General of Economic Affairs at the Department, said the emirate’s industrial sector provides many financial incentives, such as reduced electricity tariffs at 20 fils per kilowatt, and will witness the launch of a new package of incentives.

This new financial plan includes further reductions to electricity tariffs and the cost of industrial land, as well as many other important incentives, he said. The department has successfully reduced the number of licensing requirements from 26,000 to 6,000, in cooperation with local authorities and strategic partners.

There are 111 factories registered in the golden list, which produce 602 products, all of which are part of procurement by governmental and semi-governmental entities, he further added.


20 Giugno 2022

Mohammed bin Rashid announces opening of ‘Expo City Dubai’ in October 2022

DUBAI, 20th June, 2022 (WAM) -- His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, announced the opening of Expo City Dubai, this coming October 2022. The new city is an ideal smart and futuristic destination for business and innovation, driven by sustainability, innovation, education and entertainment.

His Highness Sheikh Mohammed bin Rashid said, "Brothers and Sisters, after the historical success of Expo 2020 Dubai, which was visited by more than 24 million visitors, and which left an indelible mark in the 170-year history of World Expositions, today we announce the transformation of the exhibition site into Expo City Dubai, a city that represents the most beautiful ambitions of Dubai.

"Expo City Dubai will be an environmentally-friendly city, one friendly to families, to the economy, and to future generations. A city connected to a port and two airports, and also to beautiful memories in the hearts and minds of millions of people. A city in which the magic of Expo will live on: Al Wasl will continue to shine, the waterfall will continue to delight, and the UAE, Alif and Terra pavilions will continue to fascinate visitors of all ages."

"This new city will be home to an extraordinary new museum, a world-class exhibition centre, and the headquarters of cutting edge and fast-growing companies. It will continue to host the pavilions of Saudi Arabia, Morocco, Egypt, and others. It will be a city that embodies the dreams of every city, and one which continues to bring joy to our children, our families, and all those we love."

Expo City Dubai – the legacy plan of Expo 2020 Dubai and part of the Dubai 2040 Urban Master Plan – builds on the momentum and resounding success of the six-month World Expo to create an environmentally-friendly, tech-enabled city of the future.

Opening 1st October 2022, it will feature a number of Expo 2020 Dubai’s flagship pavilions, entertainment and technology offerings, while also carrying forward the event’s magic, energy and excitement.

With an array of diverse attractions, the comprehensive city will feature offices, leisure facilities, food and entertainment venues, sports facilities and a mall. It will be reachable by the Dubai Metro and will also house the world-class Dubai Exhibition Centre (DEC), a sought-after venue that hosted a range of global summits, conferences and concerts during Expo 2020 Dubai, DEC will continue to host a range of conferences, events and activations.

Three of Expo 2020’s most visited attractions, the iconic Al Wasl Plaza, the Garden in the Sky observation tower and the Surreal water feature, will remain. While Alif, the Mobility Pavilion and Terra, the Sustainability Pavilion, will live on as interactive educational experiences.

Later this year, the Opportunity Pavilion will become the Expo 2020 Dubai Museum – a new addition highlighting the history and impact of World Expos and celebrating the success of the six-month event.

Other attractions set to stay include the Woman’s Pavilion, which features female change-makers across the world, and the Vision Pavilion, honouring the vision of His Highness Sheikh Mohammed bin Rashid.

Visitors will also be able to explore the falcon-inspired UAE Pavilion and the Kingdom of Saudi Arabia Pavilion. Details of several other Country Pavilions – including reworked versions of Luxembourg, Australia, Pakistan, India, Morocco and Egypt will be announced in the coming months.

Expo City Dubai will be free of single-use plastic and retain 80% of infrastructure and buildings that have been constructed, including 123 LEED-certified buildings, epitomising the highest levels of sustainable design, construction and operations. It will also be the first WELL-certified community in the region, demonstrating the built environment’s positive impact on health and wellness.

Offering a wealth of opportunities for businesses that meet its sustainable targets, Expo City Dubai is already attracting interest from a large number of commercial tenants. It will soon become the new headquarters of DP World, Siemens, as well as start-ups and Small and Medium Enterprises (SMEs).

15 Giugno 2022

CBUAE raises the Base Rate at 75 basis points

The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points, effective from Thursday, 16 June 2022.

This decision was taken following the US Federal Reserve Board’s announcement on 15 June 2022 to increase the Interest on Reserve Balances (IORB) by 75 basis points.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates.


30 Giugno 2022

Federal Tax Administration Clarifies Destruction Of Excisable Goods Within Designated Zones Process

The Federal Tax Administration (FTA) has clarified the excise duties relief available for defective or missing products and the process for the destruction of excise goods in a designated area, as follows:

Wastage of excisable goods already released for consumption

The Executive Regulations of the Federal Decree-Law No. 7 of 2017 on Excise Tax (the Executive Regulation) do not provide the possibility to recover the excise tax on goods that cannot be sold or otherwise used during business after their release to consumption.

Wastage of excisable goods within a designated zone

Excise goods will be deemed to leave the designated excise tax area and be released for free circulation where there is a shortage or lack of quality and for this to occur:

  • the warehouse keeper responsible for the excise goods notifies the FTA within 30 days of discovering the deficiency in the stock or shortage in quantity; and
  • it appears that the shortage of, or deficiency in, the excise goods is due to a legitimate cause accepted by the FTA.

FTA considers "legitimate cause" the following cases:

  • force majeure: circumstances beyond the warehouse keeper or taxable person's control, which lead to the excisable goods being damaged or destroyed.
  • natural wastage and shortage: unintentional deterioration, shortage, contamination or otherwise unfit for consumption for any natural reason; and
  • waste or shortage during production: an allowable threshold of excise goods that become unusable, or a shortage that occurs as a result of the manufacturing process to produce another excise good.

The destruction of the goods must not occur until permission has been obtained from the FTA that the goods may be destroyed, and FTA may wish to inspect the goods prior to granting its approval to apply the excise tax relief.

Excise tax relief process

The taxpayer must submit to the FTA the loss and damage declaration (Declaration EX203B), which must be approved by the warehouse keeper, within 30 days of discovering the deficiency or shortage in the goods. The declaration submitted to the FTA must contain the following information:

  • the registration number (TRN) of the owner of the goods;
  • the registration number of the warehouse keeper;
  • information on the intended place of destruction (if any) of the goods (e.g. at a specified disposal facility);
  • the reference number of the designated area in which the goods are held;
  • the date of entry of the goods into the designated area;
  • the date on which the defect, damage or shortage of goods was discovered;
  • the reason for the notification (i.e. the cause that led to the shortage or deficiency of the goods) and the reason for the request for approval of destruction, if applicable;
  • the supporting documents validating the reason for the notification indicated above;
  • the description of the type of goods to be destroyed, including the item code; and
  • the value of the excise tax that would have been due on these goods.

The taxpayer, as well as the warehouse keeper, must provide the documents proving the legitimate cause for the loss or damage. The FTA will assess the declaration submitted and respond to the request within 30 days from receipt of the declaration.

The FTA will then respond to the request by either:

  • accepting the reason for the insufficiency or deficiency of the excisable goods and granting a total or partial exemption from excise tax; or
  • rejecting the application for exemption from excise tax if the reason for the deficiency or deficiency of the excisable goods is an illegitimate reason, or if the application is not made within 30 days of the date of discovery of the deficiency or deficiency of the excisable goods.

For requests related to goods that are intended to be destroyed or disposed of, the FTA may notify the warehouse keeper of the intention to inspect the goods or to allow the goods to be destroyed or disposed of without the need of inspection. In both cases, the taxpayer will be required to provide evidence that the goods have been destroyed or disposed of after completing the destruction process in order to grant him relief from excise tax.

The Excise Tax Public Clarification EXTP007 was published on the FTA's official website on 21 June 2022.