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The Small Things Great Workplaces Do That Nobody Talks About
The Small Things Great Workplaces Do That Nobody Talks About
ESG in the UAE — What It Means, Why It Cannot Wait, and What Each Pillar Actually Requires
ESG in the UAE — What It Means, Why It Cannot Wait, and What Each Pillar Actually Requires
UAE Interpreneur Report 2026
Interpreneur Report 2026 | Market insights: The view from United Arab Emirates
Five Business Lessons I Didn't Expect to Learn in My First Year of Consulting
Five Business Lessons I Didn't Expect to Learn in My First Year of Consulting
The Speed-Quality Trade-Off in Audit - A Myth
The Speed-Quality Trade-Off in Audit - A Myth
FTA VAT Audit – The Onset of a New Journey
Surandar Jesrani, CEO & Managing Partner - MMJS Consulting
It has been more than three years that the term “VAT” has become an integral part of business communities in the UAE. We can surely say that VAT for business is like blood in the body. The UAE’s Federal Tax Authority (FTA), for its part, has taken proactive measures to clarify existing regulations and introduce new VAT guides and clarifications in the past few years. From over three years since VAT implementation, the Federal Tax Authority has issued over 20+ guides, 20+ VAT public clarifications, and 500+ private clarifications. Further, the tax authorities have also shown flexibility in relations to conducting VAT Audits— to the benefit of UAE businesses where mainly large business were witnessed with VAT Audit in the initial years of VAT implementation, however, nowadays medium to small businesses are also coming within the ambit of VAT Audits – Does this indicate a new normal compliance requirement in the UAE?

Through this article, I have majorly focused on simplifying the VAT Audit process which every business in the UAE should consider while preparing themselves for any VAT audits in the future.

As UAE follows self-assessment system for filing VAT returns, VAT audit becomes an important tool in the hands of FTA to assess the level of VAT compliance of taxpayer.

The FTA has a time limit to initiate VAT audit within 5 years from the end of relevant tax year, E.g.: Audit for the Financial Year Ended 31 December 2018 can be initiated any time before 31 December 2023. However, as exceptions, (a) The above time limit may be extended by additional 4 years on the request of the FTA; (b) Real estate related records of any business entity should be maintained for a period of 15 years.

Who would be selected for VAT Audit? – There is no precise reason for selection of audit cases by the FTA – Any taxpayer is at equal chance of undergoing VAT audit.
Some of the indicative audit trigger points, in our experience, could be:
(i) Large taxpayer;
(ii) VAT refundable position;
(iii) Incorrect filing of VAT returns;
(iv) Non-payment of taxes;
(v) Mixed supplies (taxable and exempt); etc.

Types of Audit and Audit Process – There are different types of VAT audits such as refund audit, regular audit, field audit and correspondence audit. Irrespective of the type, a typical audit process is outlined as below:

1) Issuance of Notice by FTA

2) Collation and submission of the requested information to the FTA within 5 business days from the date of notice.

3) Request for additional information, including any site visits by FTA.

4) Audit closure – FTA issues its decision.

There is no defined timeline for FTA to complete the audit. It depends on the size and complexity of the business.

Information requested by the FTA – FTA may ask for various types of information/documents from businesses at the time of issuance of VAT Audit notice. The common information requested during VAT audit are:

  • Transaction listing in the template shared by FTA – Format is periodically updated.
  • Audit questionnaire (contains 30-35 questions) – Needs to be filled very precisely as it gives high level understanding of business to the FTA.
  • Brief note on business activities capturing nature and process of sale and purchase transactions.
  • List of categories of income received since registration and its VAT treatment.
  • Sample tax documents such as tax invoices, tax credit notes, import declarations, etc.
  • Full trial balance and audited financial statements (if any)
  • Reconciliation of VAT returns with the trial balance.
  • Corporate group structure including all branches and locations.
  • Input tax apportionment – method used and calculation.

It is pertinent to note that the above list is non-exhaustive as FTA may ask for additional details which may vary based on the business operations. Further, such information should be provided within a short span of 5 business days, hence business needs to be well equipped with robust IT system, record keeping of information and trained tax/finance professionals.

Any non-compliance with VAT Audit process attracts hefty penalties. In addition, it is also important to note that a late payment penalty up to 300% may be imposed.

Benefits of VAT Audit

The VAT Audit would highlight to the senior management the level of readiness of the Company to accommodate the FTA’s requests. This would reflect the teams’ ability to adhere to short timelines, system capabilities for report generation and record keeping etc.



Other benefits:

  • Greater comfort for filed returns in case of a challenge from the authorities and more clarity on remedial measures.
  • Identify the areas where private clarification/ administrative exceptions from the FTA, in case of any ambiguous tax treatment, is needed.
  • Rectify past errors by way of filing Voluntary Disclosure (if needed) before the start of audit and avail the benefit of reduced penalties under the recent Cabinet Resolution No. (49) of 2021.
  • Identify whether Amnesty scheme can be availed under the recent Cabinet Resolution No. (49) of 2021.

How to Prepare for VAT Audit: Businesses are advised to undertake following steps to prepare themselves for VAT audits:


  • Pre-audit review of historical tax periods (VAT health check) from an external consultant.
  • Obtain private clarification/ administrative exceptions from the FTA, in case of any ambiguous tax treatment.
  • Rectification of past errors by way of filing Voluntary Disclosure (if needed) before the start of audit to avoid the incremental late payment penalty.
  • Preparing the team and management for audit (it is recommended to assign a single point of contact within the organization to communicate with the FTA).

Based on my experience, I can say that the entire audit process is very interactive – businesses should ensure that everything is in line with the requirements of the FTA and UAE VAT Laws. It is highly probable that every business may get exposed to VAT audit, however, we believe that preparedness is the only key to efficiently manage what is called the “New Normal” in the UAE VAT world.
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Kreston 50 – How it all began
Virginia Cook, Marketing Director - Kreston Global

At Kreston, many of our big and small decisions are driven by our clients and their needs. It comes as no surprise that our very origins are down to what a client needed and how we responded to their call for help.  But it is also a story of friendship and shared ambitions that still lies at the heart of our Kreston family.
When a client turned to his trusted adviser and asked him to help him expand into new overseas markets back in 1970, that adviser, Dr Gabriel Brösztl (from German firm Bansbach Schübel Brösztl & Partners), could see immediately that this would become a major requirement for many German and other clients across the world.

Dagmar Brösztl-Reinsch, Dr Brösztl’s daughter explains: “at that time the idea of having international networks was not so well established. But my father said “yes we can help you, we’ll find a way” because he always put clients first. That was the beginning of Kreston. Very simple and very small.”

Dr Brösztl travelled to London and, at a networking event, met someone who shared the same international vision. Michael Ross, a partner at UK accountancy firm Finnie & Co, was a true “internationalist”. He had travelled extensively, worked abroad, and seen how markets were opening up overseas. They both agreed – it was time to form an international relationship that would put clients’ international aspirations at the forefront of its efforts.

Kreston Global came into being in 1971 as a German/UK alliance but with big plans to extend into other European territories and beyond.  It was also the start of a lifelong friendship between the two families, with shared family holidays and many common bonds.

Other leading players in the worldwide accounting market didn’t really start to look seriously at the international market until the 1980s when a series of mergers saw the formation of KMG in 1979, AMSA (later Arthur Young Europe) in 1980 and KPMG in 1986. But it wasn’t until 1998 that the giants of the accounting world came into being with the “mega merger” of Coopers & Lybrand and Price Waterhouse to create the world’s largest accounting organisation, PwC.

Global expansion

Meanwhile Kreston was focusing on its own approach to helping clients expand overseas by building an alliance of committed independent firms who knew their domestic markets inside out.

In 1981 they extended the alliance to Denmark, France, the Netherlands, and Sweden.  (our French firm Groupe Fiduciaire Kreston is still a member today). In 1991 the group had become so big they created a more formal structure by appointing the first Kreston Global Secretary/CEO, Chris Flint.

After the birth of the World Wide Web in 1989, Kreston was able to truly operate globally and 1997 saw Kreston launch its first website, asking: “Does the reach of your business span continents, oceans and time zones? Look to Kreston Global for support.” A Kreston promise as true today as it was in 1997.

In 2000, after serving as Chairman of Kreston for 29 years, Dr Gabriel Brösztl eventually announced his retirement as Managing Partner of the Bansbach firm after 60 remarkable years.  Clive Stevens, then-chairman of Kreston said: “Without Gabriel Brösztl there would simply be no Kreston. It was Gabriel’s early vision, leadership and drive that created our organisation 39 years ago. Kreston continues to thrive on the culture that Gabriel established of ‘doing business with people we know, like and trust.’”

Despite this departure, our two founders’ shared vision continued.  Between 2001-2011, Kreston grew in mainland China with nine member firms in 30 locations and over 1,700 professional and support staff. In 2005, after the Enron collapse, our American firm CBIZ/MHM joined Kreston, followed in 2008 by EXCO, a French accounting network that also included eleven French-speaking African countries, New Caledonia Poland, Reunion, and West Indies.

Kreston becomes a network

Another big move for Kreston was in 2011 when the board decided to become a network and to join the Forum of Firms, an association of firms run by IFAC to uphold standards and ethics in transnational auditing, driven by industry landscape changes and the need to drive quality through the profession.



Our implementation of a globally coordinated quality assurance program, committing to the use of International Standards on Auditing (ISAs), enabled us to join. “That was a big decision for Kreston to become a network,” Andrew Collier, Kreston’s Quality Director, points out, “to share a brand, resources, have a quality review programme in place and to really focus on the quality of our member firms and ‘transnational’ work was a major step forward.”
In the Middle East, another major milestone came in 2014 when Kreston held its first Middle East regional Conference in Dubai. Delegates came from all the Kreston firms across the Middle East, as well as members from India and Jersey, to spend 3 days together finding much common ground around clients and ambition.

Between 2016 and 2017, Kreston saw more rapid growth as new member firms were welcomed from Albania, Algeria, Australia, Cameroon, Congo, Ghana, Israel, Italy, Japan, Kyrgyzstan, Luxembourg, The Netherlands, Serbia, Singapore, Tanzania, Thailand, and Uganda. The network also cemented its presence in Bolivia, Cambodia, Gaza, the Philippines, Vietnam, and Yemen.

Sharing knowledge and expertise across the world

Around this time Kreston also created global knowledge sharing initiatives for its audit and tax experts worldwide. Whilst international audit and accounting capability is a core focus for Kreston, as Andrew Collier explains, “Tax will always be an international battle ground, so as businesses operate more internationally, it’s going to be more important that they can navigate that complexity.” These global groups have evolved and thrived (and been joined by others). They are now an important source of co-operation and knowledge sharing for the network.

Liza Robbins, current Chief Executive, joined in 2018 and instigated the move of our HQ to the City of London in 2019, reflecting the desire of its members to have a central office that matches the forward-thinking image of the network itself.

Today Kreston Bansbach still plays a key role in Kreston, with their ongoing place on the Board. Finnie & Co was taken over by BDO in the early 1992, but, 50 years later, we still hold close our founders’ passion for the importance of friendship, cultural collaboration and trusted working relationships across our network that have brought success for Kreston. No doubt that is why Michael Ross described the establishment of Kreston as “one of his proudest achievements.”
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The UAE’s Strategy for Industry and Advanced Technology Is a Global Invitation to Make it in The Emirates
His Excellency Omar Ahmed, Suwaina Al Suwaidi

When His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the UAE’s National Strategy for Industry and Advanced Technology earlier this year, he ushered in a new era.

Known as Operation 300bn, the strategy provides a clear roadmap for the UAE to become a world-leading industrial hub within the next decade. With its focus on developing our capabilities in industries of the future like space, green hydrogen and biotechnology, the announcement instantly attracted widespread attention from a swathe of international investors, policymakers and commentators. The consensus that emerged was that this latest – in a long line – of bold moves from the UAE’s leadership, marked a quantum leap for the nation’s industrial sector.

At its heart, the strategy aims to increase the industrial sector’s GDP contribution to AED300 billion by 2031 by accelerating the adoption of advanced technology across the value chain. This, we firmly believe, will boost productivity, generate added in-country value, create a raft of new, highly skilled jobs for the nation’s emerging talents, further diversify our economy and enhance global competitiveness.

In short, we are setting out to transform the industrial sector into a key driver of sustainable growth – and a pillar of the national economy. We will turbocharge existing industries where we have an established presence, and we will venture to new frontiers by leveraging advanced technologies and Fourth Industrial Revolution (4IR) solutions and applications. We will research what the future could look like, and we will develop the technologies to take us there.

Under the new strategy, innovation will not be a mere buzzword. It will be our de facto approach to industry as we cultivate a culture of ingenuity and entrepreneurship, and encourage everyone, from around the world, to come and make it in The Emirates.

Solid Grounds

Though it sets a new tone for the UAE, this strategy was not developed out of the blue. Boasting the strongest credit ratings in the region, the UAE has long enjoyed investment safe haven status, with enviable economic stability and a promising growth landscape; bolstered by its strategic location, robust financial reserves, huge sovereign wealth funds, and sustainable government spending that ensures a healthy economic cycle.

Energy resources and raw materials required for industrial use are also available at competitive costs. Furthermore, UAE-based manufacturers can take advantage of laws that guarantee full ownership rights for foreigners in 122 economic activities across 13 sectors – soon to be expanded to cover the majority of industrial sectors – which will come into full effect as of 1 June 2021. Combine this with zero percent corporation tax and a wealth of accessible geographic locations and specific business zones ready to boost further industrial development, and it is easy to see why so many global, regional and local manufacturers were already developing their businesses in the UAE. Simply put, the UAE is an ideal strategic market for the world’s most innovative companies, reached new levels of high-tech excellence worldwide.

An Appealing Business Landscape

As part of our journey towards enhanced economic diversification, the UAE has long sought to develop policies, procedures and practices that foster the growth of both the national economy and the private sector.

Our efforts here speak for themselves. The UAE is consistently ranked among the top countries around the world in key economic competitiveness and ease of doing business indices. This is largely as a result of the many incentives, legal and logistical facilities, and collaborative regulatory environment we have introduced for businesses over the years. The results speak for themselves; we are proud to support a stable private sector with an ambitious growth agenda.

The UAE has a transport and logistics ecosystem that’s considered the most efficient and comprehensive in the region, and one of the easiest to reach from anywhere in the world, via 10 airports and 12 seaports. With a handling capability of more than 17 million tons annually and a cargo capacity of 80 million tons, the UAE sits at the intersection of Asia, Europe and Africa, giving its manufacturers easy access to markets where more than five billion people live.

Enabling Operation 300bn

The Ministry of Industry and Advanced Technology will be the enabler of Operation 300bn. We will be responsible for developing legislative and regulatory frameworks, providing energy at competitive prices, and developing an advanced technology roadmap, a framework for research and development (R&D), and launching the National In-Country Value (ICV) program.

The ICV program is a core component of the UAE’s industrial transformation. It aims to redirect expenditure on procuring goods and services into the national economy. In parallel, the metrology standards developed by Ministry will ensure local industrial infrastructure meets international standards and enable the ICV Program to enhance the competitiveness of local products and services and boost collaboration between the public and private sectors.

To achieve these targets, industry players should prepare to work with the Ministry on the adoption of new and updated industrial laws, the roll-out of digital platforms for services and licensing, the promotion of locally produced goods and the enablement of an R&D ecosystem.

Priority Sectors

The strategy leaves no single industry behind but has established a framework through which the current industrial landscape can continue to thrive. Industries with existing national significance, such as energy, petrochemicals, plastics, heavy industries and manufacturing; strategic industries that aim to enhance economic resilience and reduce dependence on global supply chains, such as food, water, agriculture and healthcare; and future industries, such as space, biotechnology, medical technology, sustainable products and sectors that can be supported by 4IR applications.

Enabling these sectors and facilitating the entry of innovators and investors are some of the key pillars of the strategy. Furthermore, the role of the Emirates Development Bank (EDB) as the financial engine of the strategy is crucial. By 2025, the bank will expand its financing portfolio to AED30 billion to support entrepreneurs, startups, SMEs and large corporates, who will help spur the nation’s transition to a knowledge-based economy.

Make It In The Emirates: Gateway To The Future

The strategy is complemented by the first-of-its-kind industrial campaign, ‘Make it in The Emirates’. It’s an open invitation to investors, industrialists and innovators to participate in the growth of the industrial sector in the UAE. The UAE has always been a land of opportunity for those with the talent and imagination to realize their dreams. Our investment environment and openness to global markets and competitive advantages ensure a capital-rich landscape for the industry-minded creator. Consider this your invitation to come and make it in The Emirates. It’s your opportunity to engage with the ministry and to invest in a forward-thinking, industrious, global future.


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Dubai Chamber – A Bridge Between India And Dubai
Sameer M Nawani, Chief Representative of Dubai Chamber International Office - India

India and Dubai share historic and strong trade and cultural ties. The non-oil trade between India and Dubai has consistently increased over years from $26 billion in 2017 to $36 billion in 2019, making India the second largest trading partner for Dubai. Indians are the largest investors in Dubai’s real estate sector and make up the largest segment of tourists visiting the emirate. The city also is home to over a million Indian nationals, who account for over 30% of the population of the Emirate.

Since 2015, India and the UAE have exchanged several high-level visits, which strengthened the relationship and led to the signing of the Comprehensive Strategic Partnership, an agreement that aims to expand economic cooperation and boost bilateral trade and investment. Given the role Chambers play in mobilizing businesses and promoting trade and investments, India’s Prime Minister Narendra Modi during his visit to Dubai in February 2018, welcomed the idea of Confederation of Indian Industries (CII) opening an office in Dubai and Dubai Chamber of Commerce & Industry opening an office in India. Dubai Chamber opened its first representative office in Mumbai, India, in June 2018. The main objective of the office in India is to identify bilateral business opportunities that businesses in India and Dubai can capitalize on and benefit from.

The year 2020 has not been an easy one. It has put the healthcare systems of global economies through tremendous strain, disrupted supply chains and brought businesses to a standstill. In such times where the world is pressing a reset, the continued exchange between India and UAE is ensuring a smoother turnaround in economic activities. Both governments have been agile in taking the right measures while enhancing ease of doing business. Businesses on both sides are being extremely pro-active in exploring diversification, finding growth opportunities globally, implementing technology and strengthening their supply chain. We have seen growing interest in a number of high-potential sectors, and you can read on to learn more about these opportunities.

Food security and trade

Ensuring food security is high on the agenda for UAE and the pandemic has underlined its importance. India is first globally in milk production, livestock population and millet production and ranks second in fish, rice, wheat, cereals, fruits & vegetables, and total food production. India has the potential to double its food exports from $30 billion in 2019 to $60 billion in 2022. Lack of storage facility and transportation infrastructure results in 30% food losses in India. The India-UAE Food Corridor project is expected to fill this gap, with an investment of $7 billion from the UAE to develop dedicated logistics infrastructure connecting farm to ports in India. This project has the potential to increase the food trade between India and the UAE from $2.2 billion to $7 billion in next five years.

Dubai has developed specialized infrastructure to facilitate global trade of select products. Jebel Ali Freezone (JAFZA) in Dubai, is home to the world’s largest port-based sugar refinery which has a production capacity of 2 million MT and contributes to 3% of the refined sugar production of the world. JAFZA also has a rice hub which handles the storage, processing, and packaging of rice. Around 66% of the rice imported into Dubai comes from India. There are dedicated storage facilities for grains, pulses and other food products at JAFZA.

Dubai Multi Commodity Centre (DMCC), the free zone focused on commodities trade is home to the Tea Centre and Coffee Centre. The Tea Centre is a purpose-built facility dedicated to storing, blending, and packaging of tea. The centre has 5000 MT of storage capacity. The Coffee Centre is a 15000 square metre state-of-art temperature-controlled facility which can be used to store, clean, roast, package and distribute coffee. It also has a coffee quality centre laboratory, cupping lab, and training campus. DMCC in 2020, introduced an agri trade platform called Agriota, which facilitates trade between Indian farmers and international traders.

In 2021, Dubai Chamber is pushing ahead with new initiatives to facilitate collaboration between businesses to connect the infrastructure of Dubai and the production capacity of India.

Retail Opportunities

Retail in India is highly fragmented but transforming at a tremendous pace. It is expected to become a $1.75 trillion market by 2026. India has the second largest population in the world. With a growing middle-class and increasing urbanization, the household incomes are rising, resulting in increased consumer spending. Driven by these developments, India has seen numerous homegrown brands in retail like Lenskart, Nykaa, Forest Essentials, Belgian Waffles, etc. grow at an enormous speed. The young new India is ambitious and aspirational, making it an ideal destination for International brands and retailers, opening doors for retail businesses from Dubai.

Having one of the busiest airports and being one of the world’s most sought-after tourist destinations, Dubai is a great place for retailers and brands to have high international visibility. Dubai ranks number one globally in international brand penetration. Dubai has been among the most popular destination for Indian businesses since a few decades. It endures as an ideal destination for new and fast-growing Indian brands and retailers to learn the lessons of international operations in a dynamic market which echoes global trends, and yet provides a familiar environment close to home.

Technology and scale-ups

India is the third largest start-up ecosystem in the world whereas Dubai is the preferred hub for start-ups in MENA region. Strong regulations, access to funding, sizeable market, thriving start-up ecosystem and access to talent makes Dubai a lucrative destination for start-ups. Numerous Indian start-ups providing tech solutions have seen their solutions being widely accepted by businesses in Dubai, which has given them a strong footing in MENA region as well as helped expand their operations back home.

The pandemic has accelerated the adoption of digital solutions in banking and healthcare. Telemedicine services saw a spike in demand and hospitals rapidly moved to implementing solutions for contactless delivery of services. Digital transformation in banking is a key enabler in boosting business. The ability to be able to pay anyone, anywhere at the click of a button has been a game changer and has seen new business models evolve across sectors. The payments and the venture capital regulations introduced by the Dubai International Financial Centre (DIFC) in 2020 are changing the financial services and funding ecosystem. The DIFC’s Innovation License Program helps innovative tech companies work in a regulated environment and helps DIFC build supportive systems and regulations.

The Dubai Chamber International Office in India along with Dubai Startup Hub, StartupIndia and Mumbai FinTech Hub organized the Dubai Tech Tour, a virtual delegation in 2020, which was joined by promising fintech and health-tech scale-ups. The scale-ups Advarisk, AIkenist, Anatomiz3D, BestDoc, Cube, ePayLater, Karza Technologies, Lucine Rich Bio, Metanoa, Seragen, Supermoney, Turtlemint, Value3 and vPhrase were shortlisted through a rigorous screening process and introduced to key businesses & investors in Dubai. Some of these scaleups are in advanced stages of negotiating their first commercial deals or currently in the process of setting-up in Dubai.

Riding on this success, in 2021, the India Office of Dubai Chamber will focus on RetailTech and introduce tech solutions from India that address the changing needs of retail and e-commerce.

Dubai Chamber currently has a network of 11 International Offices in Latin America, Africa, and Eurasia, dedicated to exploring promising markets and facilitating trade and investments between these regions and Dubai.


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New Mindset Of Foreign Investments To UAE – Case Studies
Pushpakaran Parambath, Senior Partner - Kreston Menon Corporate Services
UAE economy is known to be young, rapid in growth and dynamic, and due to the strategic location between the east and the west, it gained the trust for domestic and international investment. Here came the main role of the authorities who inspire and induce foreign investors to this land of opportunities. The country was always exemplary in introducing investment friendly policies which ensure methodical and consistent growth in economic and industrial realms. UAE’s long-term plan is to diversify the economy with reduced reliance from the oil sector. In order to increase productivity and competitiveness, it is necessary to maintain and continuously improve the business climate and reduce remaining barriers to foreign trade and investment, primarily, bureaucracy, time and costs. Ongoing reforms would be better to run in the areas of human capital development, legal frameworks and clear rules for new entrepreneurs, start-up and SMEs.

Due to the country’s strategic vision of economic, social and environmental potentials, the UAE continues to achieve remarkable developments in many fields including trade, investment, telecommunications, information technology, tourism and infrastructure, as well as human and social development.

Latest reforms in the Foreign Direct Investments (FDI) rules gives more flexibility in business ownership, related regulations and at the same time these changes aim to promote and develop the country’s investment environment. It is estimated that the revision in the Law will augment FDI inflows to the country up to 20% inspite of the impact of the aftermath of the pandemic. Enactment of the FDI Law and subsequent amendment to the Commercial Companies Law has boosted FDI flows into the UAE.

The crises through which the world has been undergoing has resulted in uncertainties on economic growth everywhere. However, during such times, UAE has been focusing on finishing its infrastructure and strategic projects which were kept on hold for a long time. Higher investment and public spending are likely to drive growth to a remarkable elevation in the coming years. It is worth to notice infrastructure investment related to the country’s preparation to host the Expo 2020 Dubai will continue to support the outlook, buttressing the construction sector. This is set to contribute momentum to enhance investment in the country.

Kreston Menon was instrumental in assisting some of the top niche Companies to get 100% foreign ownership license in the UAE as per the provisions of new FDI Law and the Cabinet Resolutions released thereafter.

Case Study- 1: Manufacturer of Wellness Products

The client is a multinational company spread across US, Europe, Asia and Oceania; having operation for almost 90 years. The conglomerate engages in manufacture of healthcare products and other ingredients. The Company has been in operation in the country, however, in a limited way by organizing the availability of the products through contract manufacturing by domestic players which contributed its own pathos and limitations.

Our application process started with a formal meeting with the FDI and DED officials who assessed the merits of the proposal. The FDI department thoroughly evaluated the project feasibility and pinpointed the areas which the plan must address as per the FDI department’s expectations and requirements. Initially the application was for a trading license, however, the client changed the overall objective to take the full-fledged advantage being a 100% foreign owned company. Accordingly, discussions were held with Dubai Industrial City and Dubai Investment Park authorities for setting up a plant for manufacturing cosmetic, wellness products and alternative medicines. The project has been capitalized at AED 50 million which helped to process the application in a much faster way though the minimum capital requirements was AED 20 million. The capital outlay was structured in the form of technology transfer, installation of advanced machinery, introduction of robotic technology and artificial intelligence. The Company formulated the entire proposition for availing a national industrial license which offers duty free export to GCC countries and to the Greater Arab Free Trade Area. The Cabinet Resolution No. 16 of March 2020 (CR) granted the status of a ‘national company’ to a 100% foreign owned company, provided there is 40% local value addition in the manufacturing process, use of sophisticated machinery and modern technology despite absence of 51% UAE National ownership.

Case Study-2: Distributor of Single Brand Product

The corporation is a lifestyle company which is listed in the stock exchange in India and mainly manufactures fashion accessories such as watches, jewelry and eyewear. The entity is part of a multinational group, that started operation in 19th century having business interest from pin to plane. Being a publicly listed company, the major restriction of the Company to directly invest in the UAE market was the mandatory 51% UAE National ownership since this is not acceptable to the regulatory authority back home. The application was treated as a special case even though the CR does not expressly permit the trading segment for 100% foreign ownership. The capital commitment and investment made by the company over a period of five years is AED 250 million. The investment is in the form of setting up of various showrooms, distribution kiosks, service centers etc., pan-UAE. The limited liability company was registered with standard minimum capital; however, the client was asked to submit an assurance certificate to the FDI department as proof of investment made so far while renewing the commercial license. Deployment of qualified staffs and commitment to employ UAE Nationals in the managerial role was also a commitment given by the client to obtain the FDI license.

Case Study-3: Healthcare Service Provider

The applicant is a publicly traded healthcare provider founded almost 35 years back and operates hospitals, diagnostic centers, medical centers and pharmacies in India and Middle East. As per the CR, this activity is subject to approval of competent entities depending on the economic need considering the number of hospitals and health centers in a specific area. However, being an existing group having presence in every nook and corner of the UAE, the merit of the application was undisputable. The business plan provided the long-term objectives of the founders and the value addition they could create in the UAE economy. The most favorable impact that the FDI regulations brought to the client’s business strategy was the comfort they could offer to institutional investors who always preferred lien-free ownership in the group. 51% ownership in the name of a UAE National was always a hindrance in many entities of the founders to attract international investors.

Upon evaluating the entire process of registering the above entities, it is evident that each application for FDI license was treated purely on merit basis and ensuring how the UAE economy would benefit with such an action. The timeframe to complete the above applications took us around 45 to 60 days. The application process was expedited in many cases and turned out to be positive outcome given our experience in this market and well-established business relationships with the authorities.

Presence of the finest entities referred in the above case studies shows that the country has now gained international confidence and the latest amendments to the Commercial Companies Law steadfast the commitments by the regulatory authorities such as Abu Dhabi Investment Office, Dubai Investment Development Office, Sharjah Investment and Development Authority etc. Foreign Direct Investments help the UAE’s economy to boost rapidly, creating new jobs, productivity and consumption. Foreign Direct Investments will continue to grow in UAE, considering there is no direct taxation on corporations or individuals. At the same time, good-quality business climate and longterm political stability promote confidence to all possible foreign investors.
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Message from Kreston’s Global Chief Executive
Liza Robbins, Chief Executive - Kreston Global
2021 marks the 50th year of Kreston. Today, Kreston has grown to one of the largest accounting networks with close to 200 firms in over 110 countries that is home to more than 23,000 dedicated professionals. Kreston gives you access to top-quality advice and exceptional service wherever in the world you happen to do business.

As new markets develop and technology evolves, your business operates on an increasingly global scale. And when you are branching out into the unknown, you cannot beat a bit of local knowledge. Kreston Menon with 27 years of experience in the UAE, is the right partner for your business in the region.

You can trust Kreston Menon for the right advice because they are a team of talented, innovative professionals who offer the best assurance and advisory services not only in the UAE, but across the globe leveraging Kreston’s global resource pool.

Our monitoring and inspection system ensures that our member firms hold themselves to the highest international standards of quality, ethics and working practices.

I am glad to see that Kreston Menon’s values are reflected in their deliberate inclusion efforts amongst their diverse workforce, which in turn enhances Kreston’s global image as a champion in Diversity & Inclusion (D&I).

Our member firms work side by side with clients to understand their ambitions and tackle their challenges. As a network, we have got the connections to bring the right knowledge to the table, whatever the challenge.
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