The UAE Ministry of Finance signed agreements related to the encouragement and protection of investments and double taxation avoidance, with Kuwait and Bahrain, and other agreements with Egypt and the World Bank.
The signings took place on the sidelines of the World Governments Summit (WGS) 2024 in Dubai under the theme of “Shaping Future Governments”.
The agreements aim to boost developmental goals, diversify the national income sources for the UAE, and avoid double taxation, additional taxes, indirect taxes, tax evasion, and address the challenges of cross-border trade and investment flows. The agreements also account for tax challenges and keep pace with global changes in the economy and financial sectors, new financial instruments, transfer pricing mechanisms, and encourage the exchange of goods and services and the movement of capital.
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Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, said: “These agreements stem from the ministry’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.”
The ministry signed with the World Bank Group a second renewal agreement for the payable advisory services agreement between the UAE and the International Bank for Reconstruction and Development, which 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. This marks the second renewal of the agreement, initially signed in 2014 and first renewed in 2019. The agreement was signed by Mohamed Hadi Al Hussaini and Ajay Banga, President of WBG.
“Partnership plays a critical role in turning our ambitions into action,” said Ajay 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.”
Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy of Bahrain, highlighted the historic and longstanding relations between the Kingdom and the UAE. He pointed out the need to continue working to strengthen existing collaborations and forge new cooperations, especially in the financial, economic and investment fields. He indicated that the encouragement and protection of investments agreement and the double tax avoidance agreement come within the framework of joint efforts to develop economic, trade and investment cooperation between the two nations.
Dr Anwar Al Mudhaf, Minister of Finance and Minister of State for Economic Affairs and Investments of Kuwait, noted that the agreement is part of the economic and financial cooperation between the UAE and Kuwait, and it is expected that it will positively impact the citizens and investors from both countries.
Dr Mohamed Maait, Egypt’s Minister of Finance, pointed out that the UAE and Egypt continue advancing cooperation, especially in the tax, economic, financial, and investment fields. He noted that the supplement agreement regarding double taxation avoidance and the prevention of income tax evasion is part of the efforts to enhance collaboration opportunities for joint investments.
To date, the UAE, represented by the Ministry of Finance, has signed 143 double taxation avoidance agreements and 112 encouragement and protection of investment agreements, which collectively provide a legal framework that protects UAE’s investments worldwide.