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Introducing Expo City Dubai & KEZAD Metal Park
Pushpakaran Parambath, Senior Partner - Kreston Menon Corporate Services
Expo City Dubai is the latest addition to the array of Free Trade Zones in Dubai. The City was granted its free zone status in June 2022 through an official decree and resolutions. The Free Zone is an integral part of Dubai 2040 Master Plan which emphasizes the need of sustainable development, greener and healthy communities.
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UAE Corporate Tax: Accounting Profits and Taxable Income
Ravishanker V, Director - Taxation, Kreston Menon
While the fundamental aim of measuring profit aligns across commercial accounting practices and tax regulations, different countries apply distinct tax and accounting rules. Some nations closely link accounting income with taxable income, while others have self-contained tax laws. In the UAE, accounting net profit forms the basis for determining taxable income for corporate tax purposes. The UAE Corporate Tax Law (‘UAE CT Law’) provides that the Taxable Income of each Taxable Person shall be determined separately, on the basis of properly prepared, standalone Financial Statements for financial reporting purposes in accordance with the Accounting Standards accepted in the UAE for Corporate Tax purposes.
Accounting Standards and Accounting Profit
Accounting profit, also known as financial profit or bookkeeping profit, represents a Company’s net income derived from its operational and non-operational activities. It is calculated by subtracting total expenses from total revenue and serves as a key metric for assessing profitability and comparing financial health with industry peers.
Accounting Standards
According to Article 20(1) of the UAE CT Law, Taxable Persons are obligated to prepare financial statements in compliance with the applicable accounting standards within the country. As International Financial Reporting Standards (IFRS) are in effect in the UAE, taxable persons must adhere to IFRS guidelines for their financial reporting. Ministerial Decision No. 114 of 2023 specifies that the only Accounting Standards accepted in the UAE for Corporate Tax purposes are the International Financial Reporting Standards (“IFRS”) and the International Financial Reporting Standard for Small and Medium- sized Entities (“IFRS for SMEs”). Taxable Persons may use IFRS for SMEs if they derive Revenue not exceeding AED 50,000,000 in a Tax Period.
Basis of Accounting
IFRS stipulates that financial statements should be prepared using the accrual basis of accounting. However, Article 20(5)(a) authorizes the Minister to establish circumstances and conditions under which financial statements may be prepared using the cash basis of accounting. Taxable Persons can apply to the Federal Tax Authority (FTA) for transitioning from accrual basis to cash basis accounting. Upon approval by the FTA, these changes will take effect from the commencement of the tax period in which the application is submitted or from a future tax period.
In accordance with Article (2) of Ministerial decision No. 114 of 2023, a Taxable Person may prepare Financial Statements using the Cash Basis of Accounting if:
- Their Revenue does not exceed AED 3 million within the relevant Tax Period; or
- In exceptional circumstances and pursuant to an application submitted by the Taxable Person to the FTA.
Audited Financial Statements
Ministerial Decision No. 82 of 2023 has been published specifying that a Taxable Person deriving Revenue exceeding AED 50,000,000 (Fifty Million United Arab Emirates Dirhams) during the relevant Tax Period as well as a Qualifying Free Zone Person shall prepare and maintain audited financial statements.
Relief for Small Businesses
Article 21 of the UAE CT Law offers tax relief for small businesses, allowing tax resident entities with Revenue not exceeding AED 3,000,000 in a relevant Tax Period and all previous Tax Periods that end on or before 31 December 2026 to elect for Small Business Relief thereby deeming that the entity has not derived any taxable income.
Adjustments to Accounting Profits
As per Article 20 of the UAE CT Law, the Taxable Income for the tax period is the net profit or loss reported in the financial statements, after making adjustments as necessary, for the following items:
Unrealized Gains or Losses
Taxable Persons who prepare their financial statements on an accrual basis will have an option to avail realisation basis treatment of unrealized accounting gains or losses for tax computation. If the Taxable Person decides to avail the benefit of taxing unrealised gains and losses on realisation basis, they are obliged to choose between the following options:
Option 1 – the taxpayer can elect to recognize gains and losses for all assets and liabilities only when they are realized.
Option 2 – the taxpayer can elect for the realization basis to apply only to assets and liabilities held on capital account. Gains and losses on other assets and liabilities would be included in taxable income on a current basis.
Exempt Income
Exempt income under Article 22 encompasses dividends, qualified participation relief dividends, select foreign permanent establishment income, and specific non- resident income related to operating ships and aircraft.
Qualifying Group Exemptions
No gain or loss needs to be considered in determining the Taxable Income in relation to the transfer of one or more assets or liabilities between two Taxable Persons that are members of the same Qualifying Group i.e two or more Taxable Persons who satisfy specified conditions including, but not limited to, common shareholding of 75%.
Business Restructuring Relief
No gain or loss needs to be taken into account in determining Taxable Income in relation to business restructuring transactions, subject to specified conditions.
General expenditure deduction
In accordance with Article 28, Expenditure incurred wholly and exclusively for the purposes of the Taxable Person’s Business that is not capital in nature shall be deductible in the Tax Period in which it is incurred, subject to the provisions of this Decree-Law. Accordingly, the Taxable Person needs to ensure that the expenditure is carefully evaluated to ensure the business purpose of such expenditure and the capital or revenue nature thereof. Further, if any expenditure serves multiple purposes, a deduction is allowed for the identified business purpose of such expenditure or a reasonable portion of such expenditure determined based on a fair and reasonable basis.
Interest Expenditure
The general interest deduction limitation rule, according to Article 30, restricts interest expenditure deduction to 30% of Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA). This limitation doesn’t apply to banks,certainfinancialinstitutions,insurancebusinesses, and individuals. Ministerial Decision No. 126 of 2023 further extends the exemption from this rule to Taxable Persons whose Net Interest Expenditure does not exceed AED 12,000,000 (Twelve Million Dirhams)
Article 31 also prescribes specific non-deduction for interest expenditure on loan obtained from Related Parties, used for certain specific purposes laid down in the UAE CT Law.
Entertainment Expenditure
Article 32 lays down special rules governing entertainment expenses, limiting deductions to 50% of the cost. These expenses encompass spending for entertaining customers, shareholders, suppliers, or business partners, including meals, accommodation, transportation, admission fees, facilities, equipment, and other expenses of similar nature.
Non-deductible Expenditure
Article 33 specifies expenditure that are not deductible for the purposes of computation of Taxable Income. This includes:
Transactions with Related Parties and Connected Persons
Article 34 of the UAE CT Law stipulates that transactions and arrangements between Related Parties must meet the arm’s length standard. Further, Article 36 of the UAE CT Law specifies that a payment or benefit provided by a Taxable Person to its Connected Person shall be deductible only if and to the extent the payment or benefit corresponds with the Market Value of the service, benefit or otherwise provided by the Connected Person and is incurred wholly and exclusively for the purposes of the Taxable Person’s Business.
Accordingly, necessary adjustments may have to be made to the taxable income if the transactions with related partiesandconnectedpersonsarenotcarriedoutinline with the Arm’s Length Principle.
Loss Relief
Chapter 11 of the UAE CT Law specifies that a Tax Loss can be offset against the Taxable Income of subsequent
Tax Periods to arrive at the Taxable Income for those subsequent Tax Periods. Specific rules have been made in relation to conditions to be satisfied for such set off and transfer of losses within the group.
Conclusion
In conclusion, adherence to accounting standards accepted in the UAE is crucial for businesses to accurately determine their taxable income. While there may be differences between commercial accounting practices and tax rules globally, the UAE aims for alignment to international standards, promoting efficiency and reducing compliance costs. Understanding the provisions outlined in the UAE CT Law ensures proper treatment of adjustments such as unrealized gains or losses, exemptions, reliefs, and deductions. Additionally, the flexibility provided for changes in accounting methods underscores the importance of compliance with the law over conflicting accounting standards.
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Imperatives Of New Age Corporate Business Planning
Pradeep Balakrishnan, Senior Manager - Consulting
A boxing legend famously said, “Everyone has a plan until they get punched in the mouth.” Covid-19 taught us that best drawn up corporate business plans do not protect businesses against all eventualities or guarantee business success. In fact, during the recent pandemic, businesses that committed significant resources to major projects according to well laid out plans without effective contingency planning, are the ones which got hit most.
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Single Family Office Effective Solution for Managing Affluent Family Wealth
Pushpakaran Parambath, Senior Partner - Kreston Menon Corporate Services
Wealthy families are seeking advanced, more systematic, and secure ways to manage their wealth and investments. Family Office concept has emerged as a preferred solution providing structured financial services to affluent families, managing their assets, and protecting legacies for future generations. Family Offices facilitate to professionalize investment and management functions by creating investment committees, establishing governing boards, structuring family leadership succession plans, next generation education programs etc. There are manifold reasons to set up a Family Office and these dwell around the family’s vision, objectives, and ambitions. The fundamental objective would be to protect and preserve family wealth through generations, and to ensure that this objective is given a structure that caters to that family and evolves when the family grows or changes. Family offices tend to provide broadly two types of services or a combination thereof: (i) those focused on financial planning and investments; and (ii) those aimed on the family and supporting, its day-to-day needs. The first category would typically include investment and asset management, asset monitoring, trust services, tax and legal services, and under the latter category, concierge services, travel planning and administrative functions may be included.
In UAE, there are Three Robust Jurisdictions where Single Family Office may be Set Up:
(1) Dubai International Financial Centre (DIFC)
(2) Abu Dhabi Global Market (ADGM)
(3) Dubai Multi Commodities Centre (DMCC)
DIFC & ADGM
DIFC and ADGM are the financial centers reputed for the presence of international financial service providers. They emerged as highly respected financial jurisdictions benchmarking globally recognized regulations and best practices. DIFC and ADGM comprise three independent authorities viz., Registration Authority, Financial Services Regulatory Authority and Court that directly apply common laws. They have created a governing framework that adheres to the highest international standards, creating a secure and stable operating environment that fosters confidence among investors and families alike. Financial Service Authorities of the respective jurisdiction ensure compliance with stringent regulations, providing a vigorous safeguard for investors’ interests and preserving the integrity of the financial ecosystem.
Setting up a Family Office in DIFC
In DIFC, a Family Office can be established as a Private Company or a Limited Liability Partnership. SFO shall be established to either serve (i) a single Family; or (ii) multiple Families. Family Office serving multiple families requires approval by the DIFC Registrar of Companies after it satisfied the Registrar regarding the shared arrangements between the Families served and the reasons for serving multiple Families. A Family to be served by a Family Office must have a minimum net asset of USD 50 million. The net asset value for this purpose is established with reference to a fair market value assessment or, where this is not possible, as determined by way of a book value assessment. The SFO structure shall have a minimum of one shareholder and a minimum of one director.
DIFC SFO may Engage the Following Services in General:
(a) Services to one or more family members
(b) Services to family fiduciary structure
(c) Services to family entity
(d) Services to family businesses.
Setting Up a Family Office in ADGM
In ADGM there are no minimum investment requirements for setting up a family office. In spite of a benchmark figure is USD 10 million, the families can decide on their investment size based on their financial goals and aspirations. The accepted legal structure is Restricted Scope Companies (RSCs) and Foundations, each with distinct benefits catering to specific objectives. Eligibility to set up a SFO is based on the underlying principle that the family must have a closely related group of individuals united by blood, marriage, or adoption and share a common interest in wealth management and preservation. SFO may opt for a physical office or engage a service provider in ADGM.
ADGM SFO may Engage the Services in General:
(a) Creation of a family office structure can engage in devising investment strategies and business plans.
(b) Develop appropriate remuneration packages and strategies to attract key staff members.
(c) Developing governance structures from a corporate and family perspective.
(d) Design and develop appropriate succession planning. (e) Strategize acquisitions, re-organization and exits from investments and businesses.
(f) Cration of philanthropic strategy and designing a structure that meets social responsibility and commitments.
Setting Up a Family Office in DMCC
In DMCC, Single Family Offices are incorporated as per DMCC Company Regulations and as per the Guidelines for
Single Family Office License. SFO may accept the legal structure of a free zone limited liability company which may be owned either by individuals or a corporate entity or a registered trust (in each case wholly owned by the same family and UBOs).
It is desirable that the family has a minimum of USD 1 Million investible/liquid assets to be accepted as a SFO in DMCC. The SFO is permitted only to manage the assets of one family group and not permitted to act as trustee but might act solely as protector or as conduit with offshore regulated trustees operating the trusts or foundations. May supervise and coordinate activities amongst foreign fiduciary service providers.
The beneficiaries shall not sell shares of the SFO entity to any party, except in the case of transfer within family members. Only a family member may be a member of the board of directors; except for a consultant to the SFO who may be appointed as a director. In such a case also at least one family member must be appointed as a board member or legal representative.
DMCC SFO may Engage the Services in General:
(a) Wealth management
(b) Asset management
(c) Concierge work
(d) Day to day accounting
(e) Management of legal affairs
(f) Corporate governance issues
(g) Administrational and office affairs
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Strategic Role of HR as an ESG Partner
Shibu Abraham, Director – Human Resources & Administration - Kreston Menon and Chair of the Leadership Team, HR & People Network - Kreston Global
The term “ESG” refers to a broad category of corporate responsibility initiatives that focus on governance, social, and environmental issues. In the previous editions of Kreston Menon News, ESG experts talked about how the emergence of ESG requirements persuades businesses to think beyond profit generation and about the long-term impact of their activities on the environment and society.
In this edition we will be focusing on the ‘S’ of ESG and how those social initiatives can be put into play in your businesses. Companies with a vision for tomorrow have identified that supporting ESG initiatives can have a meaningful impact on employee engagement and well- being which in turn will contribute to enhanced productivity and profitability.
Infusing ESG Strategy to the EVP
I recently visited a real estate company where the salesperson was focusing more on the positive impact the sustainability measures incorporated into the building will have on the day to day lives of the tenants and residents. When probed more on his approach of centering his conversation on the green initiatives than the infrastructural details and layout of the units, he disclosed that these ESG factors are the deal breakers when it comes to the purchase decision of young potential buyers.
Similarly, in today’s war for talent, many organizations are positioning ESG as the focal point of their EVP (Employee Value Proposition) and using it to market themselves to the younger generation. They do not opt to work with organizations unless they are certain that those businesses have a futuristic vision and have the sustainability of the planet at the core of what they do.
In a recent study among recruiters, it was found that most discussions of Gen Z jobseekers rotate around the environmental and social aspects of the employer. They are drawn towards purpose-driven organizations, who promote wellbeing as well as Diversity and Equity within the workplace, follow high ethical and quality standards, and reach out to the society. For them, these attributes have become non-negotiable.
The Pivotal Role of HR in ESG
Talent Acquisition and Retention
ESG conscious organizations understand how critical it is to attract and retain talent who is committed to sustainability. HR departments are instrumental in incorporating ESG values into the organization’s culture, ensuring that current and prospective employees align with the defined ESG goals. According to the recent Gen Z and Millennial Survey of Deloitte, majority of the respondents prefer an employer who offers proper work/life balance and has made steady progress in Diversity, Equity & Inclusion (DEI), societal impact, and environmental sustainability.
SHRM says, 86% of employees who work at organizations that have ESG related initiatives stated that the ESG goals make them feel proud to work for their employers, bring in a meaningful dimension to their jobs and encourage them to stay with their organization.
Employee Engagement and Societal Impact
The Human Resources department plays a vital role in fostering an ESG oriented mindset among employees. Through training programs and communication strategies, HR ensures that employees understand the significance of ESG initiatives and how they can contribute to the company’s sustainability goals. Beyond mere announcements, HR should initiate the ‘walk the talk’, by formulating employee engagement activities like wellness programs, volunteering opportunities and participation in social causes.
At Kreston Menon we encourage our people to support societies and communities in a socially responsible, sustainable manner. We have forged partnerships with Dubai Cares, Al Jalila Foundation, Al Noor Training Centre for Persons with Disabilities, Rashid Pediatric Therapy Center, Dubai Autism Center, Dubai Center for Special Needs, Dubai Foundation for Women and Children, Make a Wish Foundation and Red Crescent UAE where our people are offered opportunities to interact and contribute.
Diversity, Equity and Inclusion
HR is responsible for positioning the organization as an equal opportunity employer, by providing employment opportunities to the most competent and suitable candidate. This conscious effort should not stop with recruitments, where the organization should strive to provide every person with an equitable opportunity for growth beyond the differences of nationality, colour, religion, gender or abilities.
Green Initiatives
Progressive organizations are taking measures to reduce their carbon footprint by creating environmentally conscious workplaces. HR team will be the change agents by introducing sustainable practices at the workplaces through policies and programs that encourage “green” behaviours.
It is a fact that ESG friendly workplaces improve employee engagement and productivity. Employees who are proud of their company’s ethical and social responsibility are likely to be more engaged and productive, thus contributing to overall business success.
ESG Initiatives at workplace
1. ESG Awareness Programs: Conduct ESG awareness program for employees.
2. Sustainable office practices: Implement recycling, and eco-friendly supplies and sustainable meetings.
3. Energy-Efficient Office: Implement measures to reduce energy consumption in the workplace by reducing the use of electric lights during day time and opting for sustainable products.
4. Reduce Paper Usage: By going digital, reduce the usage of paper.
5. Plastic-Free Challenge: Discourage single-use plastics at work. Introduce reusable mugs and stainless-steel water bottles.
6. Physical and Mental Wellness: Promote employee well- being by organizing sports activities and encouraging an active lifestyle. Ensure a healthy work environment and provide the needed support.
7. Eco-Friendly Transportation: Encourage carpooling and public transport.
8. Education Partnerships: Collaboration with schools and universities for internships and student training.
9. Employment Opportunities for people of determination: Bring people with disabilities to the mainstream by providing them employment opportunities and avenues to contribute and grow.
10. Ethical Supply Chain: Ensure suppliers follow ethical and sustainable practices.
11. Education and Skill Development: Enhance employee knowledge and expertise through training and development programs.
12. Involve Employees in CSR: Encourage employee participation in social causes like philanthropy, volunteering, blood donation and environmental initiatives.
United Nations Sustainable Development Goals (SDGs) adapted by Kreston Global
Let the World Know
Communicate
The study by Marsh McLennan has found that by 2029, the Millennial and Gen Z generations will make up 72 percent of the world’s workforce, compared to 52 percent in 2019. The younger generation place greater importance on ESG than their predecessors do – and will expect more from employers on environmental and social concerns.
This brings in the need for businesses to have effective communication of their sustainability achievements through mailers, social media and career pages to their internal and external audience.
At Kreston Menon, we have opened an interface on our career page where we talk about ‘Life at Kreston Menon’ highlighting how we have created a workplace that is diverse, equitable and inclusive and how we are doing our bit to make this earth a better place for the generations to come.
Involve
Employees are your best brand ambassadors. The success of your ESG strategy depends on their involvement in your green initiatives. Stories shared voluntarily by the employees will have more credibility and impact than the well curated social media posts of the organization.
As people would love to work for organizations that are taking measures to make this planet a better place, integrating your EVP with your ESG strategy can bolster your efforts to attract and retain talent.
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Reimagining Dubai’s Future-Transformation from a Global Business Centre to the Leader in MICE and the Capital of Global Digital Economy
Sudhir Kumar, Senior Partner & Head of Corporate Communications - Kreston Menon and Director - Kreston Global Board
Dubai’s real GDP grew 2.8% year-on-year in the first quarter of the 2023 to reach AED 111.3 billion. The continued high growth is a testament to Dubai’s strong fundamentals, sustainability, resilience and its capacity to create new opportunities for innovation and enterprise. Wholesale and Retail trade continue to drive economy followed by Transportation, Food services, Real Estate, Financial and Insurance.
During the first half of 2023, the Dubai International Airport welcomed 41.6 million passengers on 201,800 flights. 257 destinations across 104 countries are connected by Dubai through 91 airlines. 120 smart gates are used by 36% of the passengers. Currently Dubai Airport handles 1100 flights per day, with 62 aircraft movements in an hour and 381,000 aircraft movements per year.
In the first 6 months of 2023, Dubai welcomed more than 8.5 million international visitors. Dubai was named the world’s top ranked destination in Tripadvisor’s Travellers Choice Awards 2023.
Dubai’s bourse Dubai Financial Market rose 14% with a record AED 71 billion gain in market value for listed companies reaching AED 652 billion. Real Estate grew with total transactions reaching AED 285 billion. Dubai also emerged as one of the world’s three most attractive cities for the wealthy. Also ranked as one of the cities that recovered the fastest from the pandemic. Dubai registered a growth of 44% in business event bids in the first 6 months of 2023 leading to 143 MICE which will bring in 94,000 experts and leaders to Dubai.
In Dubai and the UAE there is a unique opportunity to boost local manufacturing and also make it a hub for global trade. By investing in local manufacturing, the UAE is planning to create jobs, reduce its reliance on imports and increase its economic independence. D33, Dubai’s economic agenda is an aspirational statement of intent by Dubai’s leadership towards the future. D33 is the future that will guide Dubai to achieve the goal of doubling the economy over the next 10 years and also become one of the top 3 economic cities in the world. It is interesting to see that the leadership focusing on innovation and future technologies to reinforce Dubai’s reputation and brand as a global tech hub. Sandbox Dubai aims to transform the city as a major hub for incubation for business innovation by enabling the testing and marketing of new products and technologies. This will attract global tech talents and entrepreneurs to Dubai and help create the target of 30 unicorns by 2033. Dubai’s ambition is to generate a new economic value of AED 100 billion from digital transformation annually.
The Dubai Government has worked to create an environment that fosters innovation, entrepreneurship and economic diversification with a world-class infrastructure and the latest technology to the new skilled workforce and the investors that are reaching Dubai. Social listening and creative bespoke solutions suiting the ever changing business requirements are in top priority for Dubai.
DubaiemergedastheWorld’smostpopulardestinationfor two years running ranked by Trip advisor, has 810 hotels and hotel apartments with 154,000 hotel rooms currently with the world’s highest occupancy rates at 78% in 2023. Dubai welcomed 8.6 million tourists in the first half of 2023. Internationally branded hotels constitute 67% of Dubai’s existing rooms list with Accor at the top spot with 71,820 rooms, Marriott at 63,790 rooms, IHG at 35,140 rooms and Hilton at 33,450 rooms.
Dubai has achieved top global ranking in attracting FDI in the cultural and creative industries by attracting 451 projects in the cultural and creative industries surpassing major cities like London, Singapore, Paris and Berlin.
Dubai’s total FDI capital flows in the cultural and creative industries reached AED 7.35 billion in 2022, ranking first in the MENA region and 12th globally.
100% ownership in Mainland for Foreign Direct Investments and long term visa for investors in the UAE are the new laws. Also the Government is planning to launch Dubai’s Unified License as a unique commercial identity for all companies all over Dubai. This will be a game changer in future. The Dubai Digital Cloud Project is a collaboration between the public and private sectors and it not only supports economic growth, but also seeks to raise the efficiency of government operations and the quality of life of people. It cements Dubai’s global status as a model city and an example of how digital transformation can be implemented to serve the community and the business sector.
Dubai reinforced its status as a global leader in sustainable infrastructure by unveiling the world’s largest and most efficient waste-to-energy facility in Warsan, with an investment of AED 4 billion. The plant has a capacity to generate 220 megawatt-hours of renewable energy, powering approximately 135,000 residential units and is designed to process two million tonnes of waste per year without any adverse environmental impact. The UAE’s Energy Strategy will create 50,000 green jobs by 2030. UAE will invest between AED 150-200 billion by 2030 to ensure energy demand is met while sustaining economic growth resulting in financial savings of AED 100 billion. This will pave the way for UAE’s climate and net-zero commitments by 2050. UAE recognises the importance of youth as agents of change, entrepreneurs and innovators
who can contribute to the green transition and foster environmentally sustainable decisions in work and life. Hosting the COP 28 will be a game changer and is a platform to showcase the UAE’s strides in climate sustainability and commitment to halve carbo emissions by 2030. The UAE calls for a global cooperation to protect the environment and preserve our planet for future generations. The UAE is a leader in innovation and sustainability in the region with a target of increasing the share of clean energy to 50 percent by 2050. Thus UAE aims to becoming a global hub for green economy and clean energy.
UAE became the fifth country in the World to reach Mars. However UAE’s ambitions transcend Martian exploration with ambitious plans to investigate the asteroid belt within our solar system. That shows the unwavering commitment and innovation of UAE in the field of space science. Mohammed Bin Rashid Space Centre, Dubai founded in 2006 is home to the UAE National Space Program.
UAE’sambitionsofthe‘MakeitintheEmirates’programme under the ‘Operation 300 billion’ industrial strategy is to raise the industrial sector’s contribution of GDP to AED 300 billion by 2031 from AED 133 billion in 2021. If you look at trade, investment, financial markets, logistics, infrastructure, shipping, tourism, aviation etc. UAE is the country where investors are attracted and they find capital, talent and ideas come together, grow and flourish. Omnichannel digital payments, training and upskilling staff, digitizing business operations, data analytics and insights are considered by the entrepreneurs as key changes for business growth in UAE.
Dubai government services reach 99.5% digitisation rate with over 120 government smartphone applications being developed. It’s paperless objective has been achieved. Digital transaction account for 87% of total government service transactions. Dubai is ready to usher in an advanced digital future and raise its status as a global exemplar for digital governance in line with the ambitious objectives of the ‘Dubai Economic Agenda 33’ and the aims of the ‘We The UAE 2031’. Dubai Centre for Artificial Intelligence will help Government entities deploy future technologies across key sectors. The Centre aims to train 1000 government employees from over 30 government entities on the uses of generative AI and also support 20 local and global advanced technology start-ups.
The GCC has the World’s eighth largest economy with a GDP of US$ 2.4 trillion and has an annual growth rate of 6%, which is targeted to be raised to US$ 6 trillion by 2050. The six countries that make up the GCC conduct US$ 107 billion worth of international trade while GCC sovereign funds manage investments worth US$ 3.25 trillion. The MENA region with 25 countries is home to 7% of the World’s population which approximately 500 million people. Dubai has 47.4% Emiratis in private sector out of the total 79,000 Emiratis working in the UAE private sector. UAE collaborates with the region and World by signing Common Economic Partnership Agreements (CEPA). India, Indonesia, Turkey and others have signed the CEPA.
Huge collaborations are happening at Kreston Middle East. We are 16 Firms from 12 countries in the Middle East. And we are projecting as one brand Kreston in the region. Recently we bagged a major deal on Audit from a major regional player who moved Audit to Kreston now, after more than 30 years of Audit with Big 4’s. This Audit deal is for Kreston in UAE, Saudi Arabia and Egypt. And they will sign with other regions also. Recently the ME conglomerate of a global engineering firm knowing Kreston Menon and Middle East collaboration shifted their UK audit from the Big 4 to Kreston Partner in the UK. Kreston Menon initiated this. Kreston Menon helps Kreston firms globally by activating them with the UAE and Middle East business enablers and trade bodies. That can be connecting with their Diplomatic Missions, Trade Offices and Major Companies. Also connect Kreston Partners in all countries with the UAE Diplomatic and Trade Missions in their country. Thus collaboration and connectivity increases and together we shall create an outstanding experience for our clients and prosperity for all. Kreston Middle East collaborates with Kreston Africa and also jointly participates in Conferences and meetings. Other Kreston Regions are in the anvil and Kreston Middle East are in talks with them.
Kreston World & EMEA Conference 2023, organized by Kreston Global and hosted by Kreston Menon is happening in Dubai from Dec 4-7 at the JW Marriott Marquis, Business Bay. 300 plus delegates from 120 plus countries are attending the Conference.
Yes, the story of Dubai continues to be written and it’s an achievement for all that call Dubai home-past, present and future. As His Highness Sheikh Mohammed Bin Rashid Al Maktoum-Vice President and Prime Minister of the UAE and the Ruler of Dubai says-‘We know our economic position during the next decade-the world makes way for those who know what they want’.
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