The UAE Ministry of Finance recently inked significant agreements during the World Governments Summit (WGS) 2024 in Dubai, focusing on investment encouragement, protection, and double taxation avoidance. Collaborative pacts were signed with Kuwait and Bahrain, alongside agreements with Egypt and the World Bank. Under the theme “Shaping Future Governments,” these initiatives aim to enhance developmental goals, diversify national income sources, and tackle challenges in cross-border trade and investment flows.
The agreements address a range of issues, including double taxation, additional taxes, indirect taxes, tax evasion, and challenges arising from global economic changes. They also accommodate new financial instruments, transfer pricing mechanisms, and encourage the exchange of goods, services, and capital.
Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, emphasized the significance of these agreements, highlighting their role in achieving transparency, fairness, and strengthening the national economy. He expressed the Ministry’s commitment to expanding strategic partnerships globally and promoting cooperation in economic and financial domains.
One notable agreement involved the World Bank Group, marking the second renewal of the payable advisory services agreement between the UAE and the International Bank for Reconstruction and Development. The agreement facilitates technical support services between federal and local entities in the UAE, aiming to benefit from the World Bank’s expertise. Ajay Banga, President of WBG, acknowledged the critical role of partnership in translating ambitions into action.
Bahrain’s Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa, emphasized the historic relations with the UAE, calling for strengthened collaborations, particularly in financial, economic, and investment sectors. The investment protection and double tax avoidance agreements are seen as pivotal in developing economic ties between the two nations.
Dr. Anwar Al Mudhaf, Kuwait’s Minister of Finance and Minister of State for Economic Affairs and Investments, highlighted the positive impact of the agreement on citizens and investors from both the UAE and Kuwait. He sees it as part of the broader economic and financial cooperation between the two countries.
Egypt’s Minister of Finance, Dr. Mohamed Maait, emphasized ongoing cooperation between the UAE and Egypt, particularly in tax, economic, financial, and investment fields. The supplement agreement regarding double taxation avoidance and the prevention of income tax evasion reflects efforts to enhance collaboration opportunities for joint investments.
These agreements mark the UAE’s commitment to a global legal framework, with 143 double taxation avoidance agreements and 112 encouragement and protection of investment agreements, collectively safeguarding UAE’s investments worldwide.