WEEKLY BUSINESS ROUNDUP - 23rd September 2024 – 30th September 2024

UAE Federal Tax Authority extends deadline to December 31st  2024

The UAE Federal Tax Authority (FTA) has announced an extension for filing Corporate Tax Returns and settling Corporate Tax Payable. The new deadline is December 31, 2024, applicable to short Tax Periods ending on or before February 29, 2024. This extension comes through Decision No. 7 of 2024, which postpones the deadline for certain Tax Periods under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments. 

 

UAE airport traffic marks 14% surge in H1 2024

UAE airports recorded 14.2% increase in passenger traffic in H1 2024 handling more than 71.7mn travelers compared to 62.8mn in H1 2023. Figures reveal Abu Dhabi International Airport reported 33.8% increase in passenger numbers in H1 2024 compared to the same period in 2023 – welcoming over 13.7mn passengers. Dubai International Airport reported 8% increase year-on-year in passenger traffic in H1 2024. 

 

UAE bolsters AML measures; climbs global rankings in fight against financial crime

The UAE enacted legal measures and regulations to strengthen its framework and address emerging risks in the financial sector. Recent reclassifications of Financial Action Task Force (FATF) Recommendations 1, 19, and 29 indicate the UAE’s progress. The London Stock Exchange Group’s Country Risk Classification rated UAE’s risk level as “medium”, improving its global position by 13 places. In the Basel AML Index, UAE’s FATF category score improved from 5.77 to 4.96, marking overall score improvement from 5.74 to 5.43.

 

CBUAE increases GDP forecast for 2024; eyes 6% growth for 2025

Central Bank of UAE has increased the GDP growth forecast for 2024 to 4% from 3.9% driven by the robust performance of the oil sector. Further for 2025, growth is expected to increase to 6% as non-hydrocarbon sector is expected to witness strong momentum & hydrocarbon production is estimated to pick up significantly. Non-hydrocarbon GDP growth is expected to remain strong at 5.2% in 2024 and 5.3% in 2025 driven by strategic plans and policies. 

 

UAE insurance sector growing with premiums up 31% to USD 9.72bn in H1 2024

In terms of gross written premiums, the UAE insurance sector marked continued growth in Q2 2024. Between January to June 2024, gross written premiums surged by 31.2% Y-o-Y in H1 2024 to AED35.7bn (USD 9.72bn), driven by an increase in property and liability insurance premiums by 39.4% Y-o-Y. The gross paid claims of all types of insurance plans rose by 34% Y-o-Y to AED18.9bn (USD 5.1bn) in H1 2024. 

 

UAE construction sector reports demand despite expected 2% – 5% price increase

Hospitality and real estate projects driving demand within the construction sector, despite an expected 2% - 5% price increase in construction costs. With consistent increase in the number of visitors to the emirate, major airport expansion and hospitality projects are underway in the UAE. It is estimated the market is set to see continued growth.

 

UAE and New Zealand successfully complete CEPA negotiations

The UAE and New Zealand have successfully completed negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) that once signed and implemented will enhance trade and investment flows between the two nations. The UAE-New Zealand CEPA will reduce or remove tariffs, eliminate unnecessary trade barriers, improve market access, and create new platforms for investment and private sector collaboration. The UAE is New Zealand’s largest trading partner in the Middle East region, accounting for 50% of its trade with the MENA region, and the tenth largest globally.

 

By 2024 end, UAE real estate market expected to reach AED 2.5 tn in value

As per industry reports, the UAE real estate market is estimated to reach a value worth AED 2.5tn (USD 681 bn) by end of 2024. This surge is estimated to be driven by the off-plan market which is responsible for almost 65% of overall sales transactions that took place in August 2024 – marking 54% volume increase from what was recorded in August 2023. Some reports further suggest this growth is led by the increasing influx of high-net-worth individuals (HNWIs).

 

Sharjah tourism growth continues with hotel stays up over 3% to 1.06m

Sharjah tourism sector reported significant growth between January to August 2024 with hotel guest numbers increasing by 3.07% to reach 1.057m, up from 1.025m recorded between January to August 2023. Industry performance results revealed Russia as the leading source market for Sharjah constituting almost 21% of the market share, while India contributed 10% and Oman 6%.