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swatia , Swati Arora, Partner at Kreston Menon and Hayford Integral Training Institute
TRENDS FOR TOMORROW
The Abu Dhabi Sustainability Week Future Skills 2030 Report identified the driving sources that will shape the future of jobs and skills in the world. The technological advancement is bound to open new horizons in the fields of automation, artificial intelligence and robotics, big data and data analysis, virtual reality and augmented reality. The global drive towards sustainability will create a new set of green jobs in alternative energy and waste management.
The current Fourth Industrial Revolution has forced every industry to undergo rapid changes and the existence of businesses will depend on how well they adapt to the new unique skills that do not exist today.
INVESTING IN YOUR PEOPLE
It is true that organizations are keeping pace with the market and technological advancements to capitalize on the business opportunities, but they can have a significant competitive advantage only if they have the ability to address the skill gaps and upskill their workforce.
Rapid advancements in technology have brought in the need of training existing employees on new technologies and tools, and upskilling existing workers who already know the organization, processes and clients will be much effective than bringing in new people. It is a universally proven fact that reskilling is a smaller investment than hiring and training a new worker. There will be a positive impact on the morale of the employees as they are given the opportunity to stay relevant, productive and effective in the competitive and constantly changing job market, where many industries are being disrupted by new technologies.
How to Upskill Your Workforce
Organizations should have a comprehensive upskilling strategy in order to cater to the requirements of the future. The strategy should lay down concrete plans and programs to provide the employees with the necessary knowledge and skills to adapt to changing technologies, work situations and job profiles. The various methods to Reskill and Upskill your workforce include:
Training programs: Specific training programs that focus on developing the skills and knowledge relevant to the requirements and objectives of the organization. The cost the organization incurs for in-house training programs, or the financial support provided for the employees to attend external courses will prove as the right investment decision to stay competitive.
Cross training and Job rotation: Progressive companies train and develop their team members to take up totally different roles within the organization, allowing them to develop their career by equipping them to acquire new skills and gain new experiences.
E-Learning programs: Organizations can encourage and support employees to enroll for specialized online learning programs which will help them learn new technologies and practices.
Conferences and workshops: Providing opportunities for employees to attend industry specific conferences and workshops can provide them with opportunities to learn from industry experts.
INVESTING IN YOURSELF
It is critical for any professional to learn new skills or improve existing ones to increase their knowledge, expertise and value in the job market.
Professional upskilling opportunities are available to individuals at all levels of their careers in the UAE. Universities, colleges, and vocational training centers provide formal education. These institutions offer various courses, including short-term certificates and long-term diplomas.
Besides formal education, there are many other ways to upskill individuals. Professional training companies offer professional development programs ranging from professional degree preparation to leadership and management courses to technology courses. Individuals can also upskill themselves online through a variety of platforms and resources which can be accessed from anywhere.
Professional upskilling, and thereby remaining updated, is a critical factor for anyone looking to grow their career in the UAE’s rapidly evolving job market. Remember, upskilling is an ongoing process. Make it a habit to continuously learn and develop your skills to stay competitive in your industry.
SKILLS IN DEMAND IN UAE
The UAE job market is quite diverse and very futuristic. As the economy is seeing a surge in investments in technology, infrastructure and energy, there is a huge demand for highly skilled workforce.
Digital and Technology Skills – The UAE is rapidly moving towards digitalization, which has increased the demand for professionals with digital and technology skills such as data analysis, artificial intelligence, cybersecurity, digital marketing and software development.
Healthcare – Healthcare professionals especially doctors, nurses, pharmacists and researchers in pharmaceuticals are in high demand.
Digital Marketing – No longer a novel field, it has now evolved into a must-have function for organizations and skill for marketeers. Every organization need digital marketing professionals to help them connect with the world.
Blockchain – The understanding of this technology with huge multi-function application possibilities is still in the process of being probed and discovered. It has applications in Finance, HR, Procurement, Quality management, Contract management… the list is growing!
Cryptocurrency Management – This is a rapidly evolving and growing field. With greater exposure and greater number of players, its great flexibility and security in use, cryptocurrency is poised to become an indelible part of finance function in most companies.
Metaverse – Only a few institutions have the expertise to provide training in the Metaverse. This is touted as a parallel universe in the days ahead.
Finance and Accounting – Finance and accounting professionals, particularly those with qualifications such as Chartered Accountant (CA), Certified Public Accountant (CPA) or Certified Management Accountant (CMA) are in high demand in the UAE.
Hospitality and Tourism – Job opportunities for trained hospitality professionals are plenty, as the hospitality and tourism industry is a significant contributor to the country’s economy.
Human Resources – Employers in the UAE are looking for professionals with strong people management and recruitment skills to help them attract, manage and retain talent.
Sales and Marketing – We talk about bots taking away sales and customer care jobs, but professionals with strong communication, negotiation and customer relationship management skills are still sought after.
ENGAGE A PROFESSIONAL TRAINING COMPANY
Engaging a professional training company to upskill your workforce has its own benefits. Their expertise and experience give them the edge in designing and delivering effective training programs apt for your field. Many training companies design training programs designed for the specific needs of your workforce.
Efficiency and effectiveness: Professional training companies can save your organization time and money by delivering training programs efficiently and effectively. They can ensure that the training programs align with your business objectives, are delivered on time and have a measurable impact on performance.
Such institutions having access to a range of resources, including industry-specific research, cutting-edge technologies and best trainers can help your organization stay up to date with the latest trends and advancements in your industry.
Surandar , Surandar Jesrani, CEO & Managing Partner - MMJS Consulting
Following an announcement on 31 January 2022, the UAE Government released Federal Decree Law No. 47 of 2022 on Taxation of Corporations and Businesses (UAE CT Law) on 9 December 2022. This follows a first of its kind public consultation drive which began on 28 April 2022 seeking feedback from stakeholders on key features and principles of the planned UAE CT regime. The UAE CT Law has been supplemented by 158 Frequently Asked Questions (FAQs) which provide further guidance regarding the intent and principles of the legislation.
Though largely in line with principles contained in the public consultation document, provisions contained in UAE CT Law have addressed issues on key aspects which is indicative of the positive approach of the UAE Government for implementing a cohesive, straightforward and transparent legislative framework.
UAE CT is applicable on taxable income of resident and non-resident persons for financial years beginning on or after 1 June 2023. UAE CT will be applied at a rate of 0 percent on taxable income upto AED 375,000 and a general rate of 9 percent for taxable income above AED 375,000. Resident entities are taxable on worldwide income whereas non-residents would be taxable on UAE sourced income which could include income from a resident in the UAE, income derived from the UAE or income from activities performed or benefitted in the UAE.
The personal income of natural persons has been kept outside the scope of UAE CT, however, business income of individuals is within the ambit of UAE CT. The meaning of business and commercial activities in respect of natural persons would be notified in a separate Cabinet Decision.
UAE CT Law provides for exemptions for businesses engaged in extraction of natural resources, Government and Government controlled entities, charities and public benefit entities, investment funds, pension and social security funds, subject to conditions. Certain exempted categories are required to claim the exemption through an application process to be notified.
Free Zones are a key economic driver for the UAE and this fact has been appropriately addressed in the UAE CT regime through an incentive to Free Zone registered persons being taxed at the rate of 0 percent on Qualifying Income. Qualifying Income would be detailed in a specific Cabinet Decision which is expected imminently at the time of going to press. However the Free Zone Person incentive carries stringent conditions including maintaining substance in the Free Zone License, satisfying transfer pricing requirements and other compliances. These conditions may not be straightforward for many businesses to comply given existing holding structures, business models and operations.
Provisions for taxable income and its computation largely follow internationally accepted best practices including exemptions to dividends from domestic companies and participation interests, a cap on net interest deduction at 30 percent of EBITDA and a cap on business entertainment expenses at 50 percent. Reliefs for small businesses, intra-group transactions and restructuring has been provided. It is important to note that UAE CT Law explicitly states that expenditure is deductible only if it is incurred exclusively for business purposes and accordingly, expenditure which is personal in nature, or incurred for exempt or incentivized income may not be deductible.
The parent entity of a resident group of companies can make an application to form a tax group with its UAE subsidiaries, subject to meeting strict conditions. These conditions include a 95 percent ownership requirement and neither the parent nor a subsidiary can be an exempt or a Qualifying Free Zone person. The parent company of a tax group is responsible for administrative mandates under law and would submit a single tax return.
The UAE CT Law has been generous in respect of tax losses providing for indefinite carry forward for setoff against future taxable income capped at 75 percent of such taxable income provided certain conditions are met. Tax losses may also be transferred between resident companies with 75 percent common shareholding subject to the specified cap for set-off.
Persons subject to UAE CT are mandated to register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number. Early bird registrations have been activated by the FTA on the Emara Tax portal. However, it is understood from authorities that a registration should be obtained prior to filing of tax returns.
All Taxable Persons subject to UAE CT, including Qualifying Free Zone Persons, will be required to file a tax return and pay any due tax within 9 months from the end of a tax year (which is the current financial year followed by such taxpayers).
As per Law, transactions with associated enterprises (related parties) and connected persons are required to comply with the arm’s-length principle which would be in line with OECD Transfer Pricing (TP) Guidelines. However, the definitions of related parties and connected persons are customized to suit the socio-economic climate of UAE and include kinship up to the fourth degree which may trigger TP requirements. UAE CT Law requires UAE businesses to maintain TP documentation which will be prescribed under a Ministerial Decision. TP documentation must be submitted to the FTA within 30 days of a request. Further, all taxpayers would be required to submit a TP disclosure form along with the UAE CT return detailing the controlled transactions of a tax year.
As per UAE CT Law, documentary evidence supporting tax positions taken by the taxpayer should be maintained for at least 7 years from the end the relevant tax year.
Additionally, UAE business may be requested to submit financial statements and other documentary evidence including transfer pricing to the FTA.
UAE CT Law includes a detailed general anti-abuse rule (GAAR) intended to disregard transactions or arrangements undertaken with the purpose of obtaining a tax advantage. GAAR applies from the date of publication of UAE CT Law in the Official Gazette.
As part of transitional provisions, the UAE CT Law also provides that the opening tax balance sheet would be the closing accounting balance sheet for the financial year immediately before the first tax year and should conform to the arm’s length principle.
The impact of a new business law or regime are far-reaching for an economy and considering that tax legislation is relatively new for UAE businesses, additional care should be taken while assessing implications under UAE CT Law. As further details would be forthcoming over the coming months through a series of Ministerial and Cabinet Decisions, businesses should closely monitor developments and prepare for change management well in advance to mitigate the probability of unfavorable outcomes. As part of the run up to the effective date of UAE CT on business activities, investors and entrepreneurs alike may consider assessing the impact of UAE CT on as is basis, structural changes (keeping in mind GAAR), modelling cash flow implications, consider exemption regimes, and developing processes and related procedures to manage compliance.
Natural persons undertaking a business activity should assess whether income earned could be regarded as business or commercial in nature and take steps to structure such activities to be tax efficient.
Every change is an opportunity to become more efficient in the way we do things and I believe this is true even in the case of implementing UAE CT in your business activities.
Virginia , Virginia Cook, Marketing Director - Kreston Global
What is a name?
We all have our favourite brands, don’t we? Ones that resonate with us, that speak to us and to whom we are loyal regardless of our “sensible” heads telling us that we could probably find a cheaper or better alternative elsewhere.
But why do we get so “hooked” on certain brands? Have you ever tried to analyse why something generates an “emotional” response when we are able to be very factual and pragmatic about other aspects of our lives?
I quite like this definition of a brand from Investopedia. “A brand is the collective impact or lasting impression from all that is seen, heard, or experienced by customers who encounter a company and its products and services. In creating a brand, a business is managing the effect that the product or service is having on the customer.”
In my younger days, it was always the consumer brands that shaped branding theory (although these days we have incredibly powerful business brands); then it was all about being a “bundle of wants and desires in the mind of the customer.” Either way as we know, it is so much more than the visual. What we talk about now is the “experience” that we, the consumer, have when we use the brand/s that we love.
What do we mean by experience? It is every single activity, online manifestation, printed brochure, customer interaction that had with every part of our product that will create that “lasting impression”; the “collective impact” we seek in a strong and compelling brand. It’s that “managing the effect” as the definition above articulates.
When it comes to professional services brands, what is being “used” or purchased is the deep technical, specialist, business advice that is customised to our clients’ specific problem. So, creating a differentiated brand in this case means ensuring every single point at which our customer interacts with us reinforces those special characteristics. This is really saliant when clients need advice and solutions from different parts of the network. Managing that experience for our clients across international boundaries and jurisdictions is hyper-important.
The word “Kreston” means “responsible, trustworthy” in ancient Greek, and our member firms take that very seriously. Our name is fundamental to the promise our brand offers our clients and the experience we need to give them.
Kreston: Our whole is greater than the sum of our parts
As a worldwide network of accounting and business advisory firms, Kreston advisers want to be compelling to ambitious, entrepreneurial, interesting clients who seek to expand their business operations around the world. These sorts of clients want to move fast, need on-the-ground support, and require local savvy business advisers who know how to get the job done, and the right business connections to make that happen. Independent, ambitious, and fiercely entrepreneurial, Kreston firms are ideally placed for clients like these across the world. The key is to manage that experience so that it is consistent and reliable for our clients wherever they are in the world.
Kreston has a powerful backstory that reinforces the drive and energy that exists in the network today. Formed in 1971 by 2 entrepreneurial accountants, one from our German firm, Kreston Bansbach, and one from an English firm, Finnie & Co, that is now part of BDO, these 2 accountants were early pioneers of both an international mindset and the concept of a network of firms around the world who collaborate to help clients expand overseas. Fifty years on, Kreston is an energetic community of like-minded people who love working together to help their clients succeed.
Five Steps to Building a Global Brand
We know from member surveys and feedback that building our global brand is a key priority for our membership.
As a network we have wide and varied audiences. Our people, our firm leadership, our firms’ clients, our potential clients, our potential future recruits and all the people involved in helping us deliver work and value as suppliers and referrers.
That’s a lot of people to try and influence. Which is why we are in this together and we are working on a 5-step programme to build that worldwide global brand.
- A shared vision and ambition – one brand worldwide
- A compelling proposition that unites us – a purpose that we all agree with
- A consistent experience across our people and our clients – online is now king
- A reputation and narrative that is compelling to our clients and our people
- Ambassadors and advocates who help create and spread our culture
There isn’t the space to go into the detail for all these steps now. But we already know our shared ambition is a strong worldwide brand: entrepreneurial firms united in a collegiate, collaborative, community-minded enterprise, fuelling ambition and walking shoulder-to-shoulder with our clients. Our members will hear more in October about our shared vision, ambition, and purpose at our first world conference for 3 years in the wonderful city of Madrid.
Let’s take a closer look at steps 3, 4 and 5 and how we work on these essential areas of the digital challenge, a strong narrative to clients, and engagement of our younger people involved in the network, so they feel a sense of ownership, pride, and opportunity.
Why Digital is King in the Battle for Hearts and Minds
The Covid pandemic changed our lives fundamentally. We were becoming digitally adept, used to doing research online, fact finding, comparing providers. But suddenly in early 2020, that was the only way we could work – the only way we could buy – and the only way we could find out any information. And we haven’t looked back. Statista.com’s April 2022 analysis confirms “As of April 2022, there were five billion internet users worldwide, which is 63 percent of the global population. Of this total, 4.65 billion were social media users.” We will never return to a world where we are not “digital first.”
Although accounting firms may rely heavily on personal recommendations to grow business locally, growing a business regionally and globally takes a robust digital brand. 62% of businesses make decisions about who to do business with using just digital content to make their shortlists (Forrest Group, 2021). There are almost 2 billion websites in the digital landscape. Getting people to come to our websites is important – creating campaigns and stories that are interesting to read and add value to our clients’ research is critical. We have a great bank of client case studies that demonstrate the way that Kreston firms help their clients and regularly send our international clients update on tax, audit, and other international topics of interest.
Lynsey Thornthwaite, Kreston Global Digital Brand and Content Manager, gives us a view of our digital performance so far, “The Kreston Global website is growing rapidly; we have doubled the organic traffic in six months, and we could do that again over the next six months. Watching how users on the website clearly indicates that these new users are in that research phase, top of the funnel. They are navigating through the website, checking the “Doing Business In” pages, then navigating the country firms’ pages.”
“The traffic coming from member websites to the Kreston Global website is a great example of buyer intent in that research phase. The Kreston Menon website is the number one firm website referring traffic to the Kreston Global website. This is due to a combination of offline activity; there is an incredible amount of work going in to raising the profile of the firm – and the online activity, and a simple to navigate website that signposts users through the customer journey effectively. We can see that users from Kreston Menon are finding the journey fluid and the content meets their needs. The audience locations are not just regional, but global and the percentage of those visitors who return is third highest overall, a positive indication of interest and engagement.” Kreston Menon is part of our group of firms who really understand the power of digital engagement.
Understanding the “Interpreneur”
A professional brand stands and falls on the quality of its reputation and the way it shows how it understands its core client buyer. So, we focus a lot on enhancing our reputation with media and content creation. Our global group experts in Corporate and HNWI Tax, VAT, Audit, Transfer Pricing, Global Mobility and Corporate Finance write and publish expert advice to demonstrate our collective knowledge in these areas. This helps our reputation as a strong business advisory brand.
As well as topical and expert content, we have recently commissioned research across 6 main global markets to probe the way in which business owners decide to expand their businesses globally, what challenges they see as key and what are the characteristics found in successful “interpreneurs.”
We call these types of business owners/investors and directors “Interpreneurs,” and the results were fascinating, giving us real insight into what type of geographies, age and gender profile makes a more likely interpreneur and what they want from governments and advisers to help them success.
We will be running a series of podcasts with our advisers and clients looking more closely at the steps to success and have developed a web tool so that clients and prospects can see if they share the characteristics for success.
Ambassadors and advocates
Our culture is forged and strengthened the more our members interact with each in communities of interest. By building more ambassadors for Kreston through involving our younger people more in the network, we gain so much from their input and energy. It is so important that they can see Kreston as a network of opportunity for future career development, where they can work on interesting and ambitious clients and with enthusiastic committed professionals and peers from around the globe. All of whom are important advocates for the Kreston brand.
We are fortunate to have Kreston Menon in our network as they are true exemplars of what it means to have a strong, strategic brand focus – it is not by chance that they have a recognised “Superbrand” status in the UAE. They are energetic business builders in their own country of course, but through forging strong relationships with government bodies in the region, by investing in an international strategy abroad to get the most out of the network, and by being very supportive and involved in Kreston’s community building activities, they have gained a big following and strong relationships with colleagues across the world in the Kreston network.
“You have to invest to see a return” is the mantra of many business advisers when helping their client to think long-term. This is very much our attitude at Kreston Global – when our firms invest in the network and in helping us to build our global brand – like Kreston Menon – then together we will be stronger, compelling, and connected together by our shared ambition.
H.E. Hossam Hussein Ismail
The Historical Bond
The Arab Republic of Egypt and The United Arab Emirates share a deep and longstanding bond on both governmental and people’s level. These relations were strengthened by historical ties that go beyond political and economic aspects. Historically, the relations between the two countries embedded in the past were further strengthened with the declaration of the Union in 1971 and the fundamental support of Egypt, through sending teachers, engineers and doctors from Egypt, to support the UAE’s union and its institutions. The UAE in turn provided all forms of support to the Egyptian army and people, supporting Egypt’s efforts in claiming back its occupied territories in the 1973 October war.
UAE’s national anthem “Ishy Bilady”- Live my Country – which was composed by the Egyptian musician Saad Abd Al-Wahhab is perhaps one of the most significant testaments of the ties between the two nations.
The UAE’s late founding father, Sheikh Zayed bin Sultan Al Nahyan, believed in Egypt’s position in the Arab world, and its pivotal and pioneering role regionally. He supported Egypt and Syria in their 1973 war for the liberation of the Arab Occupied Territories by imposing an oil boycott, making his famous declaration: “Arab oil is not dearer than Arab blood.”
Today, around 600,000 Egyptians live in UAE, working in various sectors such as education, construction, health care, administrative and judiciary services, supporting the progress and development in the UAE, while also representing one of the important pillars of the Egyptian economy through annual remittances reaching 2.1 billion dollars in 2022-2023.
On the other hand, Egypt continues to welcome UAE nationals visiting for tourism, as Egypt remains as one of their favorite touristic destinations in the Arab, African and southern Mediterranean regions. It is worth mentioning that the number of visitors to Egypt has increased to 15 million tourists in 2023.
On the political level, continued coordination is taking place between both leaderships as well as exchange of high official visits.
The Economic Ties
Economically, both the Arab Republic of Egypt and the United Arab Emirates are members in the Greater Arab Free Trade Area. The solid trade exchange between the two countries increased during the first 11 months of 2022 by 6.5 % compared to the same period in the previous year (2021) recording 4.6 billion US$; 1.8 billion exports from Egypt in the first 11 months of 2022 compared to 1.4 billion US$ during the same period in 2021 (increase of 14.4%). On other hand, the value of Egypt imports from UAE increased from 2.7 to 2.8 billion US$ in the first 11 months of 2022 (increase of 1.9%), Precious stones, pearls and jewelries are the major exports (799.6 million US$) then tools and electric machineries along with spare parts (219.6 million US$), clothes (164.3 million US$), vegetables and plants (58.7 million US$) and finally furniture and readymade facilities worth 31.7 million US$.
In terms of UAE investments in Egypt, it has witnessed a significant growth up to 5.7 billion US$ during the financial year 2021-2022 compared to 1.4 billion US$ during the same period during 2020-2021, an increase of 300%. The “Ras Al-Hikma” deal also signed between both sides in February 2024 worth 35 billion US$ considered to be the largest direct investment deal in the history of Egypt, confirming Egypt’s position as one of the most attractive destinations for foreign direct investment, and moving the country to the 32 rank worldwide in 2023, after it was ranked 45 in 2014. This progress has been achieved following the Egyptian State’s efforts to encourage foreign investment, as one of the Government’s economic plan priorities.
The increase in foreign investment flow to Egypt is related to many factors, including availability of trained workforce at competitive prices, large consumer market, competitive tax rates, access to global markets and diversified economy, in addition to a general atmosphere that encourages and attracts investment.
FDI Support
In more details, the legislative system in Egypt provides several forms that are compatible with the needs of each investor, including:
Free Zones System
Projects operating under the Free Zones System enjoy many incentives, guarantees and exemptions granted through Investment Law No. 72 of 2017, and the most important of which are:
• Profits of companies and their subsidiaries subject to the free zone systems are exempted from the tax on revenues from commercial and industrial activities and dividend income tax.
• Capital assets and production requisites necessary for practicing the project’s activity are exempted from the value added tax.
• Domestic components are exempted from the custom duties in case these goods are sold inside the domestic markets.
• All imports and exports of companies operating under the Free Zone System are exempted from custom duties and taxes.
• The projects operating under the Free Zones System and its profits are not subject to laws and regulations of taxes and customs applied in Egypt, these projects are subject to:
– 2% of the value of goods upon entry (CIF) in respect of storage projects, and 1% of the value of goods upon exit (FOB) in respect of manufacturing and assembly projects, and direct transit goods consigned to specific destination are exempted from paying such fee.
– 1% of the total revenue generated by projects maintaining activities which require no entry or exit of goods, based on financial statements approved by legal accountants.
– 1% of the total revenue generated by manufacturing and assembly projects upon exportation of commodities abroad, and 2% of the total revenue generated thereby upon entry of commodities into the country, and direct transit goods consigned to specific destinations are exempted from paying the fees.
– 2% of the total revenue generated, regarding any other projects aforementioned in the previous provision.
Investment Zones System
Investment Zone is a specific area designated for some developers to establish investment activities, and its borders shall be established by virtue of decree of Prime Minister, and the developer is responsible for carrying out the establishment, development and implementing the infrastructure of the zone, the developer can be a private company or government agency.
According to Investment Law No. 17 of 2017, investment zones are established as follows:
• By virtue of decree of the Prime Minister upon a proposal of GAFI BoD, Appropriate Minister and the Minister concerned, it is permissible to establish investmentzones specialized in various fields of investment, including logistic, agriculture and industrial investment zones, provided that the decree shall include the location, nature of activities permitted to operate and the schedule for establishment, in addition to any general conditions related to such activities.
• The developer, who is in charge of the investment zone, shall take the necessary procedures for carrying out the construction works in accordance with the schedule stated in the license.
• It is permissible, upon the decision of the Prime Minister or a delegate thereof, to grant the licensee an additional period in light of the justifications presented by the developer, subject to GAFI BoD approval.
Technological Zones System
Investment projects established within Technological Zones are projects operating in the fields of communications and information technology, including industrial activities, electronics design and development, data centers, outsourcing activities, software development and technology education. Also, all machinery and tools required by projects operating within Technological Zones may not be subject to taxes and custom duties within Egypt, and these projects enjoy special investment incentives permitted by Investment Law No. 17 of 2017.
Economic Zones System
One of the most important zones in Egypt is the Special Economic Zones in the Northwest of Suez Canal, offering a number of benefits to the projects located there, as part of the Zone management’s vision to provide factors that guarantee lowest cost of production for projects operating therein. These advantages include:
• 10% of the unified income tax within the Zone (versus 20% outside) applicable on the profit of the capital companies and on income on natural persons and on revenues derived from land and non-residential buildings.
• 5% of the income tax (versus 10% outside the Zone).
• A one-stop shop that provides the investor with single- point authority over other government agencies in core areas.
• The Economic Zone has a supreme committee that supervises the taxation system.
• The Economic Zone has a special customs service specialized to serve the Zone.
• Allowing access to the domestic markets, duties on sales to domestic market will be assessed on the value of imported inputs only.
Golden License
The golden license is a comprehensive approval on the set up, operation and management of a project, including building licenses of such project and the allocation of the real property required therefor. It may be granted to companies upon a decree of the Council of Ministers. This approval may also include providing incentives, and is valid on its own without the need to take any other action.
The total number of projects that have been granted the Golden License has reached 29 (March 2024) since the launch of this license in 2022, with a value of about 10 billion US$.
These efforts are part of Egyptian government’s ongoing efforts to encourage the foreign direct investment flows.
More information
More information about the advantage of investing in Egypt can be found on the website of the General Authority for Investment and Free Zones: www.gafi.gov.eg
Sangeetha Thomas , Sangeetha Thomas
The UAE has been acknowledged as a global leader by the Global Cybersecurity Index 2024 for its commitment to promoting robust cybersecurity practices and measures. With a notable increase in maturity, the UAE has attained the highest tier-one rating, distinguishing it as a ‘role model’ among countries.
It has also been globally recognized to be progressive in making strategic investments, and adopting innovative technologies such as cloud computing and artificial intelligence. While the nation has made considerable progress in digital governance, it still faces challenges in securing critical infrastructure for both public and private sectors.
The modernization of infrastructure and digital transformation has sparked innovation and growth, especially through initiatives like UAE’s ‘Entrepreneurial Nation’. However, there is an urgent need to enhance stability and resilience within critical infrastructure. Readiness to address risks that arise from accessing information across various devices, through diverse communication channels, and within an ever-evolving technology landscape is essential for survival.
Evolving Business Frontline
Securing the enterprise’s security perimeter is crucial, as it has become the frontline for businesses. As more users and devices traverse traditional network boundaries, and as automation increases through non-human identities, the ‘attack surface’ of organizations is constantly expanding. The rising demand for cloud computing and the use of AI, machine learning for operational efficiency have significantly broadened the security perimeter.
Today, the concern is not whether an organization will face an attack, but rather how it can effectively respond, defend, and minimize damage to its critical business assets while recovering from such incidents. This shift from the timing of attacks to methods of response has led organizations to focus on building resilience into their infrastructure. Although technology solutions can help foster secure working environments, they do not provide full assurance of security. Weak processes that utilize these technological solutions can still be vulnerable.
Today’s Challenges
The ease of integrating Artificial Intelligence (AI) into business meetings, processes, and operations have made it a decisive factor for organizations striving to remain competitive. However, the rapid adoption of AI by employees pose management challenges for organizations, similar to the infiltration of shadow IT applications into enterprise systems. Clear guidance and direction are essential for the smooth integration of AI and applications within organizations.
In today’s knowledge economy, ‘data’ has emerged as a new currency; data breaches can dismantle trust built over years, undermining customer and partner confidence. Recent research on hacktivism posts on the dark web indicated that the most prevalent topics were related to data (33%) and access (21%). Adopting approaches like ‘Zero Trust Architecture’ provide a structured method for maintaining a secure posture. However, this must be implemented holistically, addressing both process security and secure technology architecture.
According to 2024 Verizon Data Breach Report, 55% of data breaches could be attributed to human error. It is crucial for enterprises to cultivate sound cybersecurity practices to sustain a secure digital environment and effectively mitigate human-related risks.
Unauthorized access to information assets can lead to an organization’s infrastructure being misused for launching cyberattacks against government entities or other organizations. For instance, penalties for compromising a government website in the UAE can include a seven-year prison sentence and fines ranging from Dh 250,000 to
Dh 1.5 million.
UAE Cybersecurity Landscape
According to the UAE Cyber Security Council’s ‘State of the UAE – Cybersecurity Report 2024,’ 21% of exposure to cyber threats was linked to insider actions, and 40% of identified vulnerabilities in assets have persisted within the enterprise for more than five years. These figures highlight deficiencies in organizational security processes, leaving them susceptible to exploitation through ransomware, phishing, and other attacks. A study by IBM in 2024 indicated that phishing was the primary attack vector in 27% of enterprise breaches.
To bolster enterprises in their security efforts, the UAE has introduced a National Cybersecurity Strategy, backed by well-defined assurance frameworks, policies, and standards. These guidelines are applicable to organizations based on their industry and significance to the national economy, regardless of their size. The strategy is built on five key pillars and encompasses 60 initiatives aimed at mobilizing the entire cybersecurity ecosystem. Complementing this framework, UAE Cyberlaws define strict measures to combat cybercrime, imposing penalties and imprisonment for cyber attacks and breaches.
Organizations operating in UAE must be aware of the regulatory landscape governing their digital assets and infrastructure, enabling them to adopt necessary measures to comply with cybersecurity requirements. In cases of a breach or compromise, organizations in the UAE are expected to demonstrate due diligence and the appropriate actions taken to protect, respond, and recover, in accordance with established assurance frameworks.
What can businesses do?
A sound understanding of UAE’s cybersecurity landscape and initiatives can help shape and direct security programs effectively. Knowledge of sector specific cybersecurity requirements, thorough understanding of risks posed to critical assets, vulnerability assessement of its enterprise estate with measured exposure to cyber threats should form the basis of defining and adopting an enterprise secure profile through good governance, secure processes, and an optimized security architecture.
When organizations implement robust security policies and controls that align with their technology investments, they establish a dependable security control framework to consistently manage critical assets and guide user behavior to reduce risks while ensuring regulatory compliance. Regular communication about the significance of cybersecurity and recognition of employees’ contributions can reinforce positive behaviors and offset human risks.
Business operations often require organizations to adhere to various industry-specific compliance regulations, which must be demonstrated through certifications or their equivalent. Certifying competence in securing information assets will enhance organizations’ competitiveness by meeting qualification criteria and ensuring compliance with regulatory demands, besides avoiding potential fines and legal complications. Security can no longer remain an after-thought for organizations.
Leadership must prioritize cybersecurity and exemplify good security hygiene practices to foster a growth mindset. It’s time to go beyond survival tactics and set the course to thrive in today’s digital economy.
Gonul Sorbest , Gönül Serbest, Commissioner for Victoria to Europe, Middle East, Türkiye and Africa State Government of Victoria
The State of Victoria, a powerhouse of innovation, diversity and ideas in Australia, has long enjoyed a flourishing partnership with the United Arab Emirates (UAE). With shared values of progress, ambition, and opportunity, our collaboration has paved the way for dynamic trade, investment, and cultural exchanges. As we enter 2025, we look ahead with optimism, ready to deepen our ties and embrace new partnerships together.
Victoria: The Gateway to Australian Excellence
Victoria is a leading contributor to Australia’s economic success. It is the most rapidly growing State in Australia in terms of population, jobs growth and the economy more broadly. Home to Melbourne, our state capital and a global city, Victoria is renowned for its world-class education system, enviable lifestyle, world-leading sports ecosystem, a cultural and dining destination and a state that builds and makes things.
Our economy is built on diversity, with strengths in industries such as agriculture, advanced manufacturing, digital technology, health and life sciences, and sport.
One of Victoria’s great assets is our extensive international presence and reach. With 23 trade and investment offices strategically located in key markets across the globe, Victoria boasts the largest international network of any Australian state or territory. These offices play a vital role in connecting Victorian businesses with international partners and vice-versa, fostering collaboration, and driving economic growth.
The UAE holds a special place in Victoria’s international partnerships. As the first Australian state or territory to establish a trade and investment office in Dubai in 1997, Victoria has demonstrated its long-term commitment to region, and over the years, this relationship has enabled Victorian businesses to explore new markets, share expertise, and achieve success across traditional and emerging industries.
Longstanding Partnership with the UAE
The recently concluded Comprehensive Economic Partnership Agreement (CEPA), announced in September 2024, between Australia and the UAE marks a significant milestone in our bilateral relations. The UAE is already Australia’s and Victoria’s largest trade partner in the Middle East and the Agreement is set to strengthen economic ties, offering expanded opportunities for trade and investment.
A testament to this growing relationship is the significant investment by the UAE’s Lulu Group in Melbourne, which highlights the confidence of UAE businesses in Victoria’s thriving economy and underscores the potential for deeper economic ties in the years ahead.
These economic links are further enriched by the vibrant UAE-born community in Victoria, which represents 33% of the UAE-born population in Australia, fostering strong and valuable people-to-people connections.
Education: A Pillar of Collaboration
Victoria is Australia’s leader in transnational education, supported by the largest offshore education network of any Australian state. Victoria is home to 18 major medical research institutes, 10 universities with four dual sectors, 12 TAFEs. These institutions, together with our state’s schools, underpin a highly skilled workforce. Each year, over 12,000 students from the broader META region choose to study in Victoria, drawn by our globally ranked universities, vocational training and English Language institutes. Beyond the classroom, we collaborate with Middle Eastern institutions to develop tailored education programs, share research, and foster innovation.
We believe in creating opportunities for lifelong learning and upskilling, ensuring that individuals and industries alike can adapt to the evolving global economy. This vision aligns with the UAE’s forward-thinking approach to education and workforce development.
Sport: A Bridge Between Cultures
Sport is a universal language that brings people together, and Victoria has established itself as the undisputed sporting state of Australia, driven by Melbourne’s world-class sports calendar, premier sporting infrastructure, and thriving innovation networks.
As the only city in the world to host both a Tennis Grand Slam (Australian Open) and a Formula 1 Grand Prix we also excel off the court with a leading business of sport event, the upcoming SportNXT conference. Our state is at the forefront
of using sport to foster international relationships.
As the Victorian Government is dedicated to fostering long-term, meaningful relationships, building on shared interests and the Gulf’s growing focus on sports as an economic driver, I recently led our first-ever trade sports economy trade delegation to the Gulf, made up of more than 20 world class Victorian companies with expertise and comprehensive knowledge across a wide array of sports sectors.
Victoria’s expertise in sport extends beyond hosting world-class events. We are leaders in sports technology, infrastructure, community participation and governance.
Future Perspectives: Opportunities Abound
Victoria’s strong ties with the UAE are exemplified by the success stories of Victorian companies that have established a presence and thrived in the region. Ego Pharmaceuticals, a leading skincare manufacturer, has expanded its footprint in the UAE, providing high-quality products tailored to the needs of the local market and building strong brand recognition. Last year, they celebrated 30 years since the opening of their office in Dubai in 1993.
Similarly, PMY Group, a global technology consultancy specializing in major events and infrastructure, has brought its expertise to the UAE, supporting high-profile projects with innovative solutions. These companies represent the strength and versatility of Victorian businesses, showcasing their ability to adapt, innovate, and contribute meaningfully to the UAE’s dynamic and ambitious economy.
Looking ahead
Upcoming key events in Melbourne such as the World Chambers Congress (WCC) in September 2025 —offer platforms to showcase our shared strengths, vision and deepen connections.
The 14th WCC will take place in Melbourne from 2 to 4 September 2025 at the Melbourne Convention and Exhibition Centre. Dubbed the ‘Business Olympics,’ this premier global event is poised to welcome business leaders and innovators from around the world, showcasing Melbourne’s thriving business community while fostering meaningful connections and collaborations that will drive the future of global exchanges. This is a perfect opportunity to welcome valued partners and business leaders and influencers from the UAE to connect and strengthen ties.
We are also actively supporting numerous trade delegations to the UAE, ensuring that Victorian companies are well-positioned to engage and grow in these high-profile, sector-leading trade shows. Key sectoral events, such as Gulfood, provide a platform to strengthen partnerships, explore new opportunities, and showcase Victoria’s expertise across a range of industries.
Let’s chat
Ever changing challenges demand collaboration and innovation. By working together, Victoria and the UAE can drive solutions that benefit our people and economies. Whether through advancing renewable energy, fostering entrepreneurship, or celebrating cultural diversity, our partnership is a testament to what can be achieved through shared vision and determination.
As we embark on the new year, I extend my deepest gratitude to our partners in the UAE for their ongoing support and friendship. We look forward to continuing the work in 2025 and building on our relationship defined by trust, mutual respect and shared ambitions.
For those interested in connecting or learning more about opportunities with Victoria, we invite you to reach out and connect with our team. We look forward to the conversation.
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gulfnews
, Gulf News
Demand runs high for auditors, with more corporate tax focused firms set for launch
If anyone asks about the job category with the fastest and highest hiring rates in the UAE, don’t look beyond tax auditors and specialists. The hiring process continues even as the UAE Corporate Tax formally launched on June 1, with industry sources saying there are still more positions to be filled.
Where they are not getting filled internally, businesses are contracting those tasks to outside audit firms, which are expanding their own workforce to cope with the demand rush.
At the manager level, the salary structure for a tax auditor would vary between Dh18,000 to Dh24,000 a month depending on the firm.
Entry level salaries and incentives too have improved in the last 6-8 months, while candidates are lining up 10-25 per cent increases in their take-homes when they make the jump to a new employer.
Hiring in ‘surge’ mode
So, is hiring of tax auditors in ‘surge’ mode? Shibu Abraham, Director – Human Resources at the consultancy Kreston Menon, stops short of saying that a surge is on.
“There is demand for qualified and experienced tax consultants and auditors,” he said. “We have seen an increase of 10 percent in our staff strength this year, mostly at entry and mid-level.
“We have a structured career path for auditors, where most of them join as trainees or associates and who over time get promoted to senior auditors, supervisors and managers.”
Audit industry sources say that more specialist tax firms will launch in the coming weeks, and they too will get onto the hiring spree.
“Not every business can afford to have an in-house team of tax specialists, which is why outsourcing offers a big opportunity,” said an auditor.
“These new businesses are either launching on their own and hope to gradually build up a clientele, or opt for joint ventures to speed up the process.”
“Companies are increasingly outsourcing their tax functions to external tax consultants or firms,” said Abraham. “This approach is prevalent among many businesses, especially SMEs that might not have the resources or expertise to handle complex tax matters in-house.”
– Shibu Abraham, Director – Human Resources at Kreston Menon
More graduates enter the fray
It’s also a good time for new tax professionals to seek their chances in a trending job market. This week, Dubai’s DIFC Academy saw the passing out of the first 28 candidates who went through the UAE Corporate Tax Diploma Programme, run in tandem with PwC Middle East. Some of them had already passed the Final Certificate Examination provided by ATT-UK.
Focus on awareness
At the DIFC Academy, they went through a ‘condensed’ 30-day programme that equips them ‘to guide companies in complying with the new UAE corporate tax requirements’.
That’s exactly what the market wants.
“Finance professionals have gained the practical knowledge and skills to successfully ensure that all practices, systems, and processes of their respective companies comply with the new tax regime,” said Christian Kunz, Chief Strategy, Innovation and ventures Officer at DIFC Authority.
Everyone’s hiring
“The Big 4 and other top accounting firms are looking for qualified and experienced auditors and tax consultants who can combine tech know-how with their finance and taxation skills,” said Abraham.
“We had seen many individual tax consultants moving to the UAE to capitalize on the opportunities thrown open by the introduction of VAT a few years ago. We have also recently seen the emergence of tax boutique firms.
”Other industry sources say that the current buzz around hiring tax professionals far exceeds anything during the launch of the VAT regime in 2018.
“It will be no exaggeration to say that tax professionals are among the most active when it comes to registering for UAE’s Golden Visa program,” said a consultant. “The rush is unprecedented.”
Is every UAE business up to speed on tax?
Registering for the corporate tax UAE continues apace, but there is still time to start the process towards tax filings and making sure the books are in order.
“Companies are increasingly outsourcing their tax functions to external tax consultants or firms,” said Abraham. “This approach is prevalent among many businesses, especially SMEs that might not have the resources or expertise to handle complex tax matters in-house.”
This is why ‘to attract and retain the right talent, there is always a cost involved.”
It’s all showing up in the frenetic hiring in the UAE for auditors. Particularly those who specialise on tax matters.
Source: “More jobs, salary hikes: Is UAE’s demand boom for tax professionals only getting started? ’” by Manoj Nair, Business Editor, Business Section, Gulf News newspaper, 23 August 2023 and online article here.
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gulfnews
, Gulf News
Businesses, their owners, and auditors in the UAE are awaiting the next big update on the corporate tax – the one related to ‘qualifying income’ for free zone entities and on which they get the 0 per cent tax benefit. A decision on this is ‘imminent’, according to multiple audit industry sources.
Any income that these free zone-based businesses generate outside of that qualifying income will come under the 9 per cent corporate tax coverage. And there lies the crux, which is why these businesses are awaiting the guidelines on QI with such a heightened sense of anticipation.
The confirmation of the qualifying income benchmark will also be of significance to the many UAE free zones, given the clarity it brings in their dealings with existing entities licensed by them and prospective ones they are looking to sign up.
The UAE Corporate Tax comes into effect on June 1.
What could make up the qualifying income?
Raju Menon, Chairman and Group Managing Partner at Kreston Menon, says : “Income that conforms to business ‘restrictions’ of each free zone authority should be regarded as QI.
“Accordingly, export of goods from a free zone, the trade in goods within a free zone or between free zones – and without any ‘contamination’ in the UAE mainland – may be regarded as qualifying income for the ‘qualifying free zone person’.”
“So would any ‘passive income’ earned by free zone companies.”
These are the confirmations that all stakeholders are looking to from the Ministry of Finance. In recent weeks, debates have intensified over whether businesses should retain their free zone status or go for a full license from the mainland. Particularly among those businesses with a heavy chunk of their income derived direct from operations or services rendered on the mainland.
Deepak Bansal of Ask Pankaj Tax Advisors says, “The scope of qualifying income is an evolving issue. The crucial point is to understand the subtle difference between honoring the promised tax incentives (given to free zone licensed companies) and offering a new set of tax incentives.”
What makes up a ‘Qualifying Free Zone Person’?
The entity must maintain ‘adequate substance’ in the UAE, or in other words have a definable direct exposure in the local market.
Derive qualifying income as specified in a Cabinet Decision.
Comply with ‘transfer pricing’ rules and maintain relevant transfer pricing documentation.
Not have made an election to be subject to corporate tax in full.
‘Proportionate’ or ‘activity’ based incentives?
“The concept of proportionate taxation is prevalent in India for tax incentives to companies based in Special Economic Zones (SEZs) and certain other countries,” said Bansal. Singapore offers ‘activity-based’ tax incentives as compared to ‘entity-based’ incentives, requiring a proportionate determination of eligible/ineligible taxable income.”
The UAE model on qualifying income – and subsequent free zone incentives – would be based on best-of-breed regulations from other jurisdictions on how they treat income generated by such entities.
“Free zones were conceptualized as international trading/manufacturing hubs,” said Bansal. “The income from exports (goods and services), and trading within free zones, is likely to be treated as QI. “The fenced areas of free zones (connected to ports) are treated as outside UAE for VAT/custom purposes. Import of goods from such areas to the mainland may also be categorized as QI, i.e., at par with non-resident suppliers’ income from goods imported into mainland UAE.
“Certain passive incomes may also qualify as QI. Any other income may be taxed at 9 per cent resulting in proportionate taxation principles. The concept of ‘disqualifying income’, if introduced, could, however, have ramifications on business operations.”
Read more from our Taxation Services.
Source: “UAE’s free zone businesses await 0% ‘qualifying income’ ’” by Manoj Nair, Business Editor, Business Section, Gulf News newspaper, 9 May 2023 and online article here.
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