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The Transformative Impact of Robotic Process Automation in Audit, Accounting and Advisory: A UAE Perspective
Vineet Rathi, Managing Partner, Kreston OPR Advisors LLP
In recent years, Robotic Process Automation (RPA) has emerged as a game-changing technology in the fields of audit, accounting, and advisory services. As businesses in the United Arab Emirates (UAE) continue to embrace digital transformation, RPA is playing an increasingly crucial role in enhancing efficiency, accuracy, and overall performance. This article explores the impact of RPA on these sectors, with a particular focus on its adoption and benefits in the UAE context.
The Rise of RPA in the UAE
The UAE has been at the forefront of technological adoption in the Middle East, and RPA is no exception. The country’s vision for a knowledge-based economy, as outlined in initiatives like ‘We the UAE 2031’ and the UAE Centennial Plan 2071, has created a conducive environment for the implementation of advanced technologies like RPA.
A prime example of this commitment is the UAE Ministry of Finance’s recent implementation of RPA, which has resulted in a remarkable 85% boost in efficiency. The Ministry now uses bots for 1.8 million transactions with over 98% accuracy, saving an impressive 39,000 hours of human labor. This initiative aligns with the UAE Digital Government Strategy 2025, which aims to embed digital aspects into overall government strategies.
RPA in Audit: Enhancing Accuracy and Efficiency
In the audit sector, RPA is revolutionizing traditional processes by automating repetitive, high-volume tasks. This automation not only saves time but also significantly reduces the risk of human error.
Key benefits of RPA in audit include:
- Faster and more accurate data collection: RPA can automate data collection from various sources, consolidating it into a single system for analysis. This process is up to 10 times faster than manual methods.
- Improved efficiency: By automating repetitive tasks, RPA frees up auditors to focus on higher-value activities, such as data analysis and risk assessment.
- Increased quality: RPA provides a consistent and repeatable process, ensuring that no steps are missed and data is collected accurately.
- Enhanced analytics and insights: RPA can help identify trends, outliers, and risks that might be overlooked in manual audits.
RPA in Accounting: Streamlining Financial Processes
In the accounting realm, RPA is transforming core functions by automating routine, repetitive tasks. This automation leads to increased efficiency, reduced errors, and improved overall productivity.
Key impacts of RPA in accounting include:
- Elimination of manual data entry: RPA bots can automate tasks such as copying and pasting data between systems,
- Significantly reducing time and effort while minimizing human error.
- Improved data accuracy: RPA can validate data against predefined rules, automatically flagging discrepancies and improving overall data quality.
- Enhanced employee satisfaction: By automating mundane tasks, employees can focus on more fulfilling, high-value work, potentially leading to higher job satisfaction and reduced turnover.
- Cost reduction: The implementation of RPA can lead to significant cost savings by reducing the need for manual labor in routine tasks.
RPA in Advisory: Driving Strategic Value
In the advisory sector, RPA is enabling firms to provide more strategic and value-added services to their clients. By automating routine tasks, advisory professionals can focus on delivering insights and guidance that drive business growth.
Key applications of RPA in advisory services include:
- Process optimization: RPA can help identify inefficiencies in business processes and suggest improvements.
- Risk management: By analyzing large volumes of data, RPA can help identify potential risks and compliance issues more effectively.
- Strategic decision-making: RPA can provide real-time insights and analytics to support informed decision- making.
The UAE Perspective: Challenges and Opportunities
While the adoption of RPA in the UAE is growing, it also presents certain challenges. These include the need for upskilling the workforce, ensuring data security, and managing the cultural shift towards automation.
However, the opportunities far outweigh the challenges. The UAE’s focus on innovation and digital transformation
provides a fertile ground for RPA adoption. The government’s initiatives, such as the UAE Strategy for Artificial Intelligence 2031, further support the integration of technologies like RPA across various sectors.
Looking Ahead: The Future of RPA in the UAE
As we look towards the future, the role of RPA in audit, accounting, and advisory services in the UAE is set to grow exponentially. The Ministry of Finance’s success with RPA implementation is just the beginning. We can expect to see more government entities and private sector organizations adopting RPA to enhance their operations.
Moreover, the integration of RPA with other advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) is likely to create even more powerful solutions. This combination, often referred to as Intelligent Automation or Hyperautomation, has the potential to transform entire business models and create new opportunities for growth and innovation.
Conclusion
Robotic Process Automation is not just a technological trend; it’s a transformative force that is reshaping the landscape of audit, accounting, and advisory services in the UAE. As organizations continue to embrace RPA, we can expect to see significant improvements in efficiency, accuracy, and strategic decision-making across these sectors.
The UAE’s commitment to digital transformation and innovation positions it well to leverage the full potential of RPA. As we move forward, the successful integration of RPA will be crucial in maintaining the UAE’s competitive edge in the global economy and realizing its vision of becoming a knowledge-based, innovation-driven society.
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Interpreneurial Campaign: Top Business Breakthroughs that Makes UAE the Best Investment Hotspot
Kreston Menon
Over the years, the UAE has evolved to prove more appealing to global investors. Owing to its potential business opportunities, Government support, streamlined business operations, and profitability, the destination has become highly attractive for international entrepreneurs, simply known as ‘interpreneurs’.
Ennogen Healthcare Group, based in the UK, has recently expanded its operations to the UAE. Here is an interview of Jason Tate, the Chief Financial Officer of Ennogen Healthcare, by Sudhir Kumar, Senior Partner and Head of Corporate Communications-Kreston Menon, Director-Kreston Global Board, and Chair-Kreston Middle East. The discussion ignited the perspectives and possibilities of interpreneurs in establishing the business in the UAE.
Jason emphasized why the UAE is a prime location for business and how Kreston Menon supported their company formation in the UAE. He has also shared insights on what makes the UAE attractive for international companies and offers tips for other interpreneurs planning to establish their business in the UAE.
Read further and watch the video of Jason Tate, Chief Financial Officer (CFO) at Ennogen Healthcare to learn about their successful expansion and their perspectives on doing business in the UAE.
Sudhir: I have Jason, the Chief Financial Officer for Ennogen Healthcare Group. Ennogen Healthcare is based in the UK and set up their operations in the UAE. Good afternoon, Jason.
Jason: Good afternoon, Sudhir.
Sudhir: I would like to go through you the phase of how you have moved to the UAE. What would you say about it?
What made you select UAE to have your base and how you met Kreston Menon and what Kreston Menon has done for you?
Jason: Well, Ennogen Healthcare is a pharmaceutical business, in a rapid phase of international growth and whilst we remain UK-focused, we wanted to attract investors and business partners from other parts of the world. The UAE is uniquely placed in being central for access to parts of Asia and also remains close to Europe and attracting good talent is a really important function for our business because it’s a regulated business and the UAE provides a unique lifestyle that attracts top talents to it from all parts of the world. And it’s a pro-business environment which helps us to drive forward our success.
Kreston Menon was introduced to me by a fellow professional. And we assessed their capability in the UAE compared to other firms, including the Big Four, and I considered that Kreston Menon was best placed in the UAE to give appropriate local advice for the region, which is important in the process of setting up and also expanding.
And I’ve been working closely with Kreston Menon for several months now, and we’ve had very good advice and also help through the administrative hurdles of setting up a company.
Sudhir: What are the top 3 important things you consider you love doing business in UAE?
Jason: So when assessing coming here to the UAE, there were three really important things for me:
1. The proximity of the UAE to other regions around the world, including Asia, the subcontinent, whilst remaining close to Europe.
2. The talent pool that’s available here is attracted by the lifestyle and the agglomeration of skills from around the world.
3. The pro-business environment which the government leads and helps us to drive forward our success.
Sudhir: These are the three main reasons for it. We also understand many foreign investors are looking for the UAE as a destination for investments.
I would like to know what with your experience in this market, there are a lot of Interpreneurs coming up and setting up businesses here, scaling up from going to the broader region, the whole lot of things they would like to know.
What is your advice and tips for Interpreneurs?
Jason: So the UAE provides a very dynamic environment for Interpreneurs, attracting Interpreneurs from all regions of the world. So it’s a really useful environment and serves agglomerating and skill sets. Yes, a sharing of knowledge. And my experience is that it’s good to try locate yourself in an area where you can quickly access.
Sudhir: How do you rate your success in business? If I may say 1 to 10?
Jason: So we’re at around 9 out of 10. We’ve arrived here, set up the business and we’ve begun to achieve some of our early goals. We’re on track, but also we’re beginning to identify new opportunities that we didn’t anticipate before we came here. And as a consequence, I’ll be moving larger parts of the business out to the UAE in the coming months.
Sudhir: 9 out of 10 is a very good ranking for UAE. I would love to say this to the Dubai business authorities, and they’d be more than happy to see investors saying 9 out of 10. But that’s what Dubai wants to be number one. It needs to reach the 10. That’s the ranking they are looking for.
Kreston Global spends a lot of effort, a lot of time, and a lot of people worked together to see that they produce the best of Interpreneur Survey.
What are your thoughts on the Interpreneurial Survey Report 2024?
Jason: The Interpreneur Survey is being really useful in assessing the climate for business that’s available here in the UAE, and it’s also been useful in order to try and understand the sense of direction as well. I was particularly pleased to see that there’s a strong emphasis on international growth, which is useful for Ennogen and Ennogen’s strategy. But also there is a leaning towards Europe which is very helpful to our business strategy as well.
Sudhir: Excellent. Thank you. These are very interesting words for our interpreneur campaign and I think we definitely attract many people to come up in the UAE.
And it’s good for the government of Dubai and UAE to hear good words about Interpreneurs like you and wish you all the best and good luck.
Jason: Thank you, Sudhir.
Intrepreneurial Attractiveness Drives Substantial Investments in the UAE
Being the foremost destination that stimulates intrepreneurship and offers numerous incentives to investors, the UAE has witnessed a surge in global investors over the past few years. With the capability of attracting a huge number of investments, the country has grown into one of the most preferred investment destinations worldwide.
Presently, the UAE looks to attract many investments, promoting the investment ecosystem and raising the international indices specific to the business economy and competitive market fundamentals. Interpreneurial Survey Report 2024 throws light on the close evaluation of the business climate in the UAE, alongside the factors that contribute to the ultimate business success. To learn further and gather more insights from the interpreneurial survey report, click here.
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The Interpreneur Survey: Understanding Mid-Market Business Trends in the UAE
The UAE’s inclusion in BRICS in 2024 is expected to enhance trade and investment while its record FDI inflow of over $22 billion in 2022 highlights its status as a premier investment hub in the MENA region.
To understand how this landscape is affecting mid-market businesses, we recently surveyed 1,400 C-suite business leaders in 14 countries, in private sector companies earning up to £300m a year that have expanded internationally. We call these CEOs ‘interpreneurs’.
We have analysed the UAE-based data to understand better what drives Middle Eastern business owners when expanding abroad
Global Business Trends: Do UAE Business Leaders Believe More Business will Expand Overseas in the Next 12 Months?
Overseas business expansion is widely expected to Increase
| Significantly increase | 54% |
| Moderately increase | 39% |
| No change | 6% |
| Moderately decrease | 1% |
| Significantly decrease | 0% |
| Not sure | 0% |
At 93%, the UAE is one of the most optimistic countries in the world that global expansion is on the rise.
“The UAE Interpreneur report is precise and will be valuable for any investor. In the UAE, all foreign Governments are actively partnering with the UAE government to attract and bring in foreign direct investments as Government support is key in expanding operations. Every Diplomatic Mission in UAE has set up their separate Trade Offices to attract UAE interpreneurs. And the investor numbers increasing regularly. New areas and sectors for investments are discussed and planned. The main challenges for UAE Interpreneurs for international expansion are market volatility, right business partner and talent. Most of the Governments have formed special Teams to handle international investors and that Team relates with the Trade Offices in UAE. This helps the Interpreneurs expansion plans go seamless. A trusted and knowledgeable advisor is what all interpreneurs look for to take them through the process.”
Sudhir Kumar
Senior Partner & Head-Corporate Communications
Kreston Menon
Which Markets Do UAE Businesses Prefer to Expand into?
Which, if any, of the following regions or countries would you / your business considering expanding to? (Select all that apply)
| Western Europe (e.g. Germany, France, UK, etc) | 62% |
| Middle East | 54% |
| North America (e.g. USA, Canada, Mexico, etc) | 44% |
| North Asia (e.g. China, Japan, Korea, etc) | 34% |
| Eastern Europe (e.g. Poland, Hungary, Romania, etc) | 28% |
| South Asia (e.g. Thailand, Vietnam, Singapore, etc) | 24% |
| Africa | 24% |
| South America (e.g. Brazil, Chile, Colombia, etc) | 19% |
| Australia/New Zealand | 13% |
| Other | 2% |
Western Europe number one choice for UAE interpreneurs when expanding businesses globally or Western Europe is UAE’s number one choice for global expansion
62% of UAE respondents call Western Europe their number one location for business expansion, and they are not alone. Globally, 52% of respondents agreed that Western Europe was in their sights for expansion.
Closer to home, the Middle East is on the radar with a score of 54%. However, UAE companies aren’t afraid of truly going global, and strong trading relations with North America are reflected in the fact that 44% are considering expanding there.
What Makes a Country More Attractive to UAE Businesses Looking to Expand Globally?
Which, if any, of the following would make a country most attractive for international expansion? [Select up to five]
| Government support (e.g. grants, incubators, and mentorship programs) | 49% |
| Skills and talent (e.g. availability of local talent and openness to skilled talent immigration) | 45% |
| Favorable trade agreements (e.g. free trade zones, diplomatic partnerships, or preferential tariff treatment) | 42% |
| Tech infrastructure and digitalisation | 42% |
| Future economic growth prospects | 39% |
| Alignment with long-term growth strategy (e.g. regional investment into specific industries) | 39% |
| Favorable tax policies | 33% |
| Transparent regulatory environment | 31% |
| Geographic proximity to existing operations | 24% |
| Cultural and language similarity to existing operations | 23% |
Government support is the primary attractor for UAE business leaders
UAE respondents were the only country to value government support the most attractive when considering expansion into a country. Cultural and language similarities to existing operations were valued as the least important.
The emphasis on future economic growth as a key trait for international expansion among UAE respondents highlights the region’s forward-thinking mindset. Additionally, the high value placed on local talent availability and openness to skilled immigration (45%) indicates a strategic focus on harnessing human capital to drive innovation and competitiveness.
What Motivates UAE Interpreneurs to Expand Internationally?
Half of UAE businesses are driven to expand internationally by market growth opportunities. Meanwhile, 43% aim to outpace rivals by securing new market footholds, and 38% are motivated by access to cutting-edge digital technologies and innovation.
What are the biggest international expansion challenges in 2024 according to UAE interpreneurs?
Top 3 biggest challenges during international expansion process
| Managing economic volatility (e.g. currency fluctuations, inflation and or low growth) | 46% |
| Adapting logistics and supply chain issues (e.g. managing international shipping, distribution, and communication) | 43% |
| Finding the right local partners (e.g. building reliable and trustworthy relationships) | 39% |
Managing economic volatility proves challenging to UAE CEOs looking to expand internationally
46% of UAE businesses see managing economic volatility, such as currency fluctuations and inflation, as their biggest challenge in international expansion.
43% also majorly concern themselves with adapting logistics and supply chain issues, while 39% struggle with finding reliable local partners. Additionally, 38% of respondents find navigating global tax regulations a significant hurdle, highlighting the complex landscape UAE businesses must navigate to succeed globally.
Risk: What do UAE CEOs Think are the Biggest Risks to Global Business Expansion in 2024?
How much of a risk do the following pose to your business’s international expansion or planned international expansion?
| Escalating geopolitical tensions and instability | Disruptive risk | 6% |
| Significant risk | 36% | |
| Moderate risk | 29% | |
| Minimal risk | 17% | |
| No risk | 10% | |
| Not Sure / Not applicable | 2% | |
| Economic slowdown or recession | Disruptive risk | 17% |
| Significant risk | 25% | |
| Moderate risk | 26% | |
| Minimal risk | 21% | |
| No risk | 10% | |
| Not Sure / Not applicable | 1% | |
| Financial market and foreign exchange volatility | Disruptive risk | 11% |
| Significant risk | 33% | |
| Moderate risk | 26% | |
| Minimal risk | 19% | |
| No risk | 11% | |
| Not Sure / Not applicable | 0% | |
| Cybersecurity threats and data breaches | Disruptive risk | 8% |
| Significant risk | 27% | |
| Moderate risk | 33% | |
| Minimal risk | 17% | |
| No risk | 12% | |
| Not Sure / Not applicable | 3% | |
| Talent shortages and skilled labour gaps | Disruptive risk | 7% |
| Significant risk | 25% | |
| Moderate risk | 30% | |
| Minimal risk | 22% | |
| No risk | 16% | |
| Not Sure / Not applicable | 0% | |
| Technological disruption from AI and new technologies | Disruptive risk | 6% |
| Significant risk | 23% | |
| Moderate risk | 25% | |
| Minimal risk | 24% | |
| No risk | 22% | |
| Not Sure / Not applicable | 0% | |
| Environmental disruption and extreme weather | Disruptive risk | 8% |
| Significant risk | 27% | |
| Moderate risk | 32% | |
| Minimal risk | 19% | |
| No risk | 13% | |
| Not Sure / Not applicable | 1% |
Market volatility key risk for UAE businesses
Nearly half (44%) of UAE businesses view financial market and foreign exchange volatility as a major threat to their international growth, with 11% identifying it as highly disruptive and 33% considering it a significant risk. However, 30% see little to no risk from this volatility.
42% of respondents see economic slowdowns or recessions as disruptive or significant risks. This mirrors the concern for escalating geopolitical tensions and instability, which another 42% also regard as a threat. This heightened apprehension may stem from recent global events and uncertainties, prompting businesses to reassess their risk exposure and adopt robust strategies for resilience and adaptation.
Private Equity vs Venture Capital: Which is the Preferred International Expansion Funding Source for UAE Businesses?
| Private investors (including HNWIs) | 52% |
| Venture capital or private equity | 47% |
| Capital markets (i.e. IPO) | 39% |
| Employee equity schemes | 39% |
| Government funding | 36% |
| Management buyout | 36% |
| Crowdfunding | 34% |
| Debt | 55% |
| None of the above | 0% |
Private investors offering UAE businesses key to global expansion
Like the fast-growing economies we analysed, private investors offer young and burgeoning businesses a flexible pathway to rapid expansion.
Understanding Global Tax: Is the C-Suite Ready for a Global Tax Threshold?
How confident are you in your understanding of the global international tax rules (for example transfer pricing, VAT) that govern multinational businesses?
| Extremely confident: I have a deep understanding of global tax rules and their implications for multinational businesses | 43% |
| Confident: I have a good grasp of key principles and can navigate common scenarios, but may seek external guidance for complex situations | 49% |
| Not very confident: My understanding of global tax rules is limited, and I rely heavily on external advisors for guidance and analysis | 8% |
UAE businesses confident in global taxation understanding
In the UAE, diverse perspectives emerge regarding multinational businesses’ grasp of global international tax rules. Notably, 43% express strong confidence, indicating a deep understanding of these regulations. Additionally, 49% feel confident handling common tax scenarios but may seek external help for complex situations. Only 8% feel less confident and rely heavily on external advisors. This breakdown highlights the varied approaches taken by UAE businesses in navigating global tax obligations.
The Growing Importance of ESG for UAE Investors and Interpreneurs
| We do / would prioritise ESG | 42% |
| We do / would value ESG, but it wouldn’t be our top priority | 35% |
| We do / would consider ESG practices but if only if they don’t interfere with our other priorities | 20% |
| We don’t / wouldn’t strongly consider ESG practices | 2% |
| We don’t / wouldn’t consider ESG practices at all | 1% |
| Not sure | 0% |
UAE business leaders place ESG as a priority
Nearly all (97%) consider ESG factors when expanding into new territories. Of these, 41% prioritise ESG, 35% value it without prioritising, and 20% would consider it if it doesn’t conflict with other priorities. Only 3% disregard ESG. These findings highlight a widespread recognition of ESG’s significance in corporate decision-making, reflecting a nuanced approach to integrating these principles into business strategies.
The Benefits of AI in International Business Operations
To what extent do you agree or disagree with the following statement: ‘I feel prepared to harness the benefits of AI in global business operations within the next two years?
| Strongly agree | 60% |
| Somewhat agree | 34% |
| Neither agree nor disagree | 5% |
| Somewhat disagree | 1% |
UAE business leaders confident about the use of AI in global operations
94% of respondents from the UAE expressed readiness to harness AI’s benefits in global business within the next two years. Notably, 60% strongly endorse this view, while 34% moderately agree. Remarkably, only 1% disagree.
This high level of agreement underscores widespread confidence in AI’s potential across diverse backgrounds. Similar sentiments are echoed in the US and Nigeria. These findings highlight a global readiness to embrace AI as a transformative force in business operations.
Press Release
Khaleej Times – https://www.khaleejtimes.com/business/revealed-where-uae-firms-want-to-expand-this-year
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UAE’s Fourth Industrial Revolution – Operation 300 billion
Pushpakaran Parambath, Senior Partner - Kreston Menon Corporate Services
UAE’s industrial sector witnessed a remarkable growth and transformation in 2023 by encompassing and synergizing the strong partnership between the Ministry of Industry and Advanced Technology (MoIAT) and the private sector. The strategy is aligned with national goals and international commitments relating to advancing sustainable economic growth, deploying clean energy solutions, driving industrial innovation, and promoting responsible consumption and production.
The project operation 300bn aims and encourages sustainable development and leads to the Fourth Industrial Revolution which encapsulates an overall gamechanger to the UAE economy and its competitiveness. It aims to raise the industrial sector’s contribution to the GDP from the current AED 133 billion to AED 300 billion by 2031.
MoIAT Strategy
MoIAT’s Operation 300bn strategy is a comprehensive plan for developing the UAE’s industrial sector and improving its role in stimulating the national economy and abridged to:
- Develop the UAE’s industrial sector, both macro and micro level.
- Increase its in-country value (ICV) program.
- Establish the country as a preferred global hub for industries.
- Build the reputation of the UAE’s industrial products through the promotion of exports to global markets.
- Create quality job opportunities in the industrial sector.
Objectives of MoIAT which formulated the strategy
The strategy is built on the following 6 objectives:
1. To create a relevant and attractive business environment for local and international investors in the industrial sector. 2. to support the growth of national industries and enhance their global competitiveness.
3. To stimulate innovation by accelerating advanced technology adoption across the industrial value chain to upgrade systems and solutions, boost productivity and forge competitive advantages in new areas.
4. To build on the solid industrial foundations that have helped fortify the UAE’s position as a global leader in industries of the future.
5. To cultivate a culture of innovation in the ministry.
6. To provide a comprehensive array of administrative services in accordance with the highest standards of quality, efficiency, and transparency.
Initiatives adopted to implement the strategy
- Established an integrated R&D ecosystem
- Continuous efforts to position UAE as a pioneering global destination for technology and innovation
- Improvement in developing an advanced technology roadmap that drives innovation
- Established standards and metrology that support advanced technology adoption
- Catalysing the adoption of the 4IR technology to boost the productivity of anchor industries
- Consistent monitoring of ICV program
- Continuous promoting ‘Made in the Emirates’ brand and national products
- Developed an integrated quality infrastructure
- Continuous negotiation of reciprocal trade agreements and work to control the classification system of traded products for export and import
- New industrial law has been implemented
- Offering attractive energy and gas tariffs to eligible sectors
- Launched a framework for partnerships with industrial sectors to develop standards and metrology
- Providing flexible financing at competitive costs for priority sectors
- Digital transformation to simplify registration, licensing and fee procedures
- Built a data management platform
Vital Industrial Sectors Identified
The following sectors have been identified to stimulate the growth and achieve the very objectives.
- Food, beverage, and agricultural technology
- Pharmaceuticals
- Electrical equipment and electronics
- Petrochemicals and chemical products • rubber and plastics
- Machinery and equipment
- Hydrogen
- Medical technology
- Space technology
Progress of the project Operation 300bn and the steps adopted so far
Operation 300bn project achieved many milestones since its announcement and implemented many investor friendly measures to accelerate its success.
Abu Dhabi Industrial Development Bureau (IDB) endorses significant achievements in the year 2023 within the industrial sector, with numerous initiatives and programs supporting the objectives of Operation 300bn, along with the Abu Dhabi Industrial Strategy (ADIS). The strong performance of the industrial sector in 2023 reflects the continued success of ADIS initiatives. The sector now represents over 17 percent of Abu Dhabi’s non-oil GDP and 9 percent of overall GDP.
Dubai Industrial City witnesses the presence of more than 800 customers and 300 operational factories within Dubai Industrial City. The collaboration with the Ministry of Industry and Advanced Technology helped Dubai Industrial City to launch their “Make Brilliance” global awareness campaign in 2023, where they executed a tripartite agreement with MoIAT and Emirates Development Bank (EDB) to boost the ‘Make it in the Emirates’ initiative. As part of the agreement, EDB committed to providing AED 1 billion in financing for Dubai Industrial City’s customers over the next three to five years.
MoIAT issued 263 new industrial production licenses in 2022, a 20 per cent increase over 2021, while the National In-Country Value program succeeded in redirecting Dh53 billion into the economy, a 25 per cent increase.
The Ministry is also providing financial incentives through seven local and international financial institutions and has reduced 14 service fees to cut the cost of doing business.
MoIAT announced that more than 300 products can be manufactured locally by investing in excess of Dh110 billion as part of companies’ procurement requirements for the next decade across 11 growth sectors.
MoIAT aims to unveil more than 1,000 technological projects by 2031, raise advanced technology exports to Dh15 billion and increase the GDP of advanced technology to Dh110 billion.
The Ministry signed an integrated industrial partnership with Egypt, Jordan, and Bahrain. As part of the partnership, the first wave of industrial projects worth more than $1 billion was unveiled last year.
Role of Emirates Development Bank (EDB)
EDB plays a key role and a prominent enabler in succeeding the objectives of MoIAT. EDB has earmarked a portfolio of AED 30 billion to support the industrial sector over a period of five years. The bank aims to finance 13,500 SMEs and create 25,000 jobs in the following sectors.
Manufacturing
Petrochemicals, plastics, heavy industries, machinery, electrical appliances and renewable energy equipment
Infrastructure
Energy, transportation, communications and digital infrastructure
Technology
Software, IT, storage devices, peripherals, renewable energy technology and education technology
Healthcare
Pharmaceuticals, biotechnology, medical equipment and hospital services
Food security
Agriculture, livestock, aquaculture and water desalination.
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Global Minimum Tax (GMT) and UAE Corporate Tax: Navigating Pillar Two
Ravishanker V, Director - Taxation, Kreston Menon
The Organisation for Economic Cooperation and Development (OECD) has explained Base Erosion and Profit Shifting (BEPS) as ‘tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax’.
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Peru – A rising regional power in the Latin American region
H.E. Marco Antonio Santivañez, Consul General of Peru in Dubai
When talking about the Latin American region, images appear in the minds of many people of territories rich in natural resources, with emerging, homogeneous nations, with Spanish as the dominant language and with a rich football tradition. The reality is that today Latin American countries diverge significantly in size, history, development model and future projections, among many other differentiating characteristics.
In the case of Peru, we are talking about a country located in a central area of the Latin American region with more than 3,000 kilometres of coastline on the Pacific Ocean and with the South American seaport with the largest volume of cargo, elements that ensure optimal conditions for its projection towards the rest of the world. The development model of open economy that Peru has followed during the last three decades, allowed it to attract important investments in mining, agriculture, fishery, energy, services and other sectors, generating sustained growth rates, thanks to its solid macroeconomic fundamentals and general and specific competitive advantages. Its economy, which is developed in a varied territory of 1,285,216 square kilometres of great biodiversity and a population of more than 33 million inhabitants, has been characterized in recent years by having had the most stable currency and the lowest inflation in the region.
An aspect that deserves to be highlighted in Peruvian foreign policy has been its vocation for peace and integration, expressed in the creation of the Andean Community of Nations (CAN) in 1969, formed by Colombia, Bolivia, Ecuador and Peru, whose headquarters are in Lima. Subsequently, 13 years ago, Peru founded the Pacific Alliance, together with Chile, Colombia and Mexico, which belong to the group of the largest Latin American economies, after Brazil and Argentina, with the purpose of facilitating the transit of goods, people and capitals. Likewise, Peru has been committed for decades to its projection into the Pacific basin, expressed with its entry in 1998 to the important multilateral forum “Asia Pacific Economic Cooperation (APEC)”, to which the largest world powers such as the United States, Russia and China belong, among others, Lima having hosted the APEC Leaders’ Summits in 2008 and 2016, and will host it again for the third time this year in November.
Moving on to a more specific level, I wish to refer to the evolution of the positive relations of friendship and cooperation that unite Peru and the United Arab Emirates, since I assumed duties as Consul General of Peru in Dubai in 2019. That year we signed agreements of mutual visa exemption for all types of passports, which came into force in November 2020. We have also held meetings of the bilateral political consultation mechanisms between our Foreign Ministries, very useful to promote the agenda of common interest for both countries. The priority that Peru assigns to the UAE was made evident through the consistent Peruvian participation at EXPO 2020 Dubai, with a pavilion that won the gold trophy for the best interior design among the medium-sized pavilions, awarded by “Bureau Internationals des Expositions (BIE)”, based in Paris. After EXPO DUBAI, we witnessed the opening of more than a dozen restaurants offering Peruvian cuisine in Dubai, which also corresponds to the boom our gastronomy experience in many other countries.
Over the last few years, we have had numerous visits from Peru from high authorities, members of the Parliament, businessmen, academicians and other personalities, who have participated in high-level international events and meetings, some of them having been honoured with recognition in the UAE.
This year in February, our Minister of Foreign Trade and Tourism visited in UAE and held an important meeting with the Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi. At the end of the meeting, it was announced the beginning of bilateral negotiations to a “Comprehensive Economic Partnership Agreement – CEPA” between UAE and Peru. This is an important step that will contribute to enrich the legal framework of our relations, as well as to promote the commercial exchange, new investments and the tourism, which had already been reinforced last year with the signing of a bilateral “Air Services Agreement (ASA)”.
On the other hand, the Peruvian Foreign Ministry has recently announced the opening of our Embassy in Abu Dhabi, which will certainly expand our bilateral relations to a higher level. In the dynamic and fast-paced world that we live in, Peru certainly offers great opportunities to companies based in the UAE, to invest and grow in a stable market, with guarantees of equal treatment between national and foreign investors, as well as with great potential. Peruvian exports to the UAE, which are around one billion US dollars, consisting of gold, fruits, food and other products, will surely increase, due to Dubai’s positioning as a port and airport hub.
In order to illustrate the opportunities that can be taken advantage of in the Peruvian economy, I would like to mention just some of the projects that are being carried out in my country, such as the prompt completion of the new air terminal and new runway at the “Jorge Chávez International Airport” located in the capital, operated by Lima Airport Partners (Fraport AG from Frankfurt, Germany); the second line of the Lima underground metro that will cross the capital from east to west and will finally reach the mentioned international airport; the new Cuzco international airport, located in Chinchero; the new multipurpose maritime mega-port of Chancay, located north of Lima; the modernization and expansion of the South Dock of the port of Callao, operated by DP World, which now can receive ships of 400 meters in length and up to 21,000 TEUs; the commuter trains to the north and south of Lima; the Autopista del Sol, which will reduce the journey between the cities of Trujilo and Sullana on the north coast by two hours; the new Talara oil refinery, which will produce fuels of high environmental quality; the new Central Highway and new peripheral road ring in the city of Lima; the new infrastructure for the 2027 Pan American Games; the irrigation of Majes Siguas II and Chavimochic III, which will allow an expansion of the agricultural surface by more than 100,000 hectares; all of which contributes competitiveness and efficiency to the Peruvian economy.
I would like to conclude this message by thanking “Kreston Menon” for the opportunity to address its clients through this medium, congratulate them for the reputation they enjoy due to the quality of their services, as well as invite those businessmen who are interested in exploring new businesses in Peru to contact the Consulate General of Peru in Dubai, which will always have its doors open to provide accurate and timely information.
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