WEEKLY BUSINESS ROUNDUP - 12th November 2022 to 18th November 2022

November 21, 2022
WEEKLY BUSINESS ROUNDUP - 12th November 2022 to 18th November 2022

31st December 2022: FTA deadline to apply for re-determination of administrative penalties on taxes
The Federal Tax Authority urged registered taxpayers to benefit from the decision to Re-determine Administrative Penalties. Eligible taxpayers can apply to have their penalties re-determined to be worth 30% of the total outstanding amount of penalties that were not paid before 28th June 2021. Taxpayers must ensure they meet the conditions set out in the Cabinet Decision on re-determining administrative penalties imposed on tax law violations in the UAE. Taxpayers who are eligible to benefit from the decision must complete all related procedures through the e-services portal on its official website before 31st December 2022 to make the most of these facilities.
 
Indicators confirm UAE exhibition and conference sector’s full recovery from Covid
As per industry data, the UAE exhibitions and conferences industry performed extremely well in 2022 with positive indicators confirming the industry’s complete recovery from the Covid pandemic. UAE introduced innovative procedures and practices to restore the momentum of the exhibitions and conferences sector. The UAE event and exhibitions industry provided an integrated and inspiring model in dealing with the Covid-19 pandemic and soon became one of the fastest countries in the world to recover from the pandemic and overcome its repercussions. 
 
UAE’s top 10 banks record 15.1% profitability in Q3 2022
UAE’s top 10 banks reported higher profitability as Return of Equity (RoE) surged by 1.3% quarter-on-quarter to 15.1 % in Q3 2022. Driven by stronger economic activity, higher interest rates and elevated oil prices Return on Assets (RoA) improved by 0.1% Q-o-Q to 1.7% during Q3. The increase in profitability was accelerated by higher core interest income, customer deposit growth and other factors.
 
UAE banks’ revenue to surge to US$25 bn driven by digitisation
The revenue of UAE banks is expected to rise by 52% to about US$25 billion by 2030 driven by digital transformation. Statistics reveal 95% banking transactions are done digitally in UAE banks and mobile banking constitutes 90% of the activity. Moreover, the share of cash in payments declined to 20% in 2021 from 69% while the number of digital accounts rose significantly.
 
UAE’s new industrial regulation and development law strengthens the future of industry

At a meeting of the Industry Development Council (IDC) discussions centred around integration between federal and local industry stakeholders and the private sector with a vision to enhance the competitiveness of the industrial sector. The Chairman and members of the council reiterated how issuance of Federal Decree Law No. 25 of 2022 would boost the industrial sector’s performance and strengthen UAE’s position as a destination of choice for industrial investments.
 
MoF announces services undertaken by natural persons as members of Board of Directors will not be subject to VAT
The UAE Ministry of Finance announced that starting from 1st January 2023 director services undertaken by natural persons serving as members of boards at entities and institutions across the UAE will not be subject to value added tax (VAT). VAT will still apply on the director services for legal persons serving as board members that delegate a natural person to act in the name of the legal persons as a member of the board of directors.
 
Abu Dhabi launches ‘Smart Manufacturing Index’ to enable transition to Industry 4.0
Abu Dhabi Department of Economic Development (ADDED) launched ‘Abu Dhabi Smart Manufacturing Index’ to guide and facilitate private sector players to transition to Industry 4.0 technologies, applications, and methods as part of the Abu Dhabi Industrial Strategy. The ‘Abu Dhabi Smart Manufacturing Index’ will provide a critical framework for assessing capabilities that will drive the industrial sector to its expected level of maturity.
 
FSRA hosts first Regulators Summit during Abu Dhabi Finance Week
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) hosted the first in-person ADGM EU-MENA Regulators Summit during Abu Dhabi Finance Week. Representatives from the MENA region, European Union and USA participated in sessions around the themes of international agenda on sustainable finance and the regulation of digital assets which aim to strengthen partnerships and increase cooperation in regulating financial services in countries across MENA.
 
Sharjah International Travel and Tourism Forum (SITTF) to start on 24th November 2022
Under the theme ‘Building a Resilient Future for Tourism’ the Sharjah International Travel and Tourism Forum (SITTF) is set to kickstart on 24th November 2022. The forum will be attended by government officials, local and international decision makers, and several experts from the global travel, tourism and aviation sector, travel content creators, hospitality entrepreneurs and more.
 
Etihad Credit Insurance records issuance of AED6.3 billion trade guarantees in first 9 months of 2022
Etihad Credit Insurance (ECI), during its third meeting in 2022, focused on programmes and initiatives aligned with the vision of bolstering the UAE’s non-oil foreign trade and increasing national exports by 50% - aligned to the ‘Projects of the 50’ agenda. ECI is committed to enhancing UAE exports and playing its part in establishing the country as a leading hub of trade and investment in the region. As of September 2022, ECI facilitated more than AED6.3 billion in value, equivalent to AED16.6 billion non-oil trade total guaranteed exposure to businesses located in the UAE that have exported to 111 countries.