WEEKLY BUSINESS ROUNDUP - 24th February 2024 – 2nd March 2024

Inter-Arab trade stands at $700bln

Inter-Arab trade stands at USD 700 billion constituting 10-11% of global trade as per Union of Arab Chambers. To further trade relations, fostering growth by standardizing specifications, enhancing logistics, and promoting private sector involvement is necessary. The private sector in the Arab region contributes significantly, constituting over 75% of the GDP, approximately $3 trillion, and plays a substantial role in employment generation.

 

UAE ranks 10th globally in Brand Finance Soft Power Index 2024

In 2024 too, UAE retains its 10th place in the Brand Finance Soft Power Index 2024 for the second consecutive year, cementing its position as the only Gulf nation among the world’s leading top 10 soft powers. Over 170,000 individuals were surveyed to assess the 193 member states of the United Nations and UAE retained its rating and positioning within the global index. The UAE ranked 1st in the ‘Strong and Stable Economy’ indicator 

  

Emirates Development Bank (EDB) increases contribution to UAE’s industrial GDP

EDB’s contribution to UAE’s industrial GDP rose 80% amounting to AED4.3 billion in 2023 from AED 2.4 billion in 2022. Further 72% increase in net approvals of financing was reported amounting to AED 3.3 billion for SMEs reinforcing EDB commitment to sustainable economic practices. 

 

UAE food and beverages sector set to grow by 17% each year

The UAE foodservice market is expected to grow at a compound annual growth rate (CAGR) of 17.09%. As per industry reports UAE’s food and beverages (F&B) sector is projected to grow to USD 43.98 billion by 2029 from USD 19.98 billion in 2024. Foodservice categories in the UAE have also diversified aligned to consumer demand. Fast food retained the largest market share in H1 2023 in Dubai and Abu Dhabi, comprising around 36 per cent and 35 per cent of the foodservice market, respectively. 

 

Fines worth USD 30.7mn imposed on banks and exchange houses in 2023

CBUAE imposed fines amounting to AED113.675 million on banks, exchange houses, insurance companies, and 'hawaladar's for non-compliance with regulatory requirements for combating money laundering and terrorism financing. 181 field examinations of licensed financial institutions was carried out in 2023 by the Central Bank of UAE.

 

New Trade for Development platform announced in the UAE

UAE announced plans to develop the Trade for Development platform - a technical assistance program that will feature a suite of free available online tools to assist trade officials, negotiators, and policymakers from developing and least developed nations to enhance their capacity and skills to engage in highly technical process of trade negotiations. This platform highlights UAE’s commitment to inclusive trade, empowering developing nations with better access and engaging in the global trading system.

 

UAE sets AED 10,000 penalty for late corporate tax registration

The UAE Federal Tax Authority set deadlines for corporate tax registrations and urged taxable persons to register on time. To abide with the tax law, it is important for businesses to note the deadline will depend on the month (irrespective of the year), when the license was obtained. The earliest one is May 31, 2024 and will be applicable to those with licenses issuance in January or February. Non-complying with the given deadline will lead to an administrative penalty of AED 10,000/-.  

 

Influx of digital nomads and expats leads to 83% sales surge in Abu Dhabi

The influx of digital nomads and expatriates in Abu Dhabi has led to a surge in property transactions Increase in demand for villas and flats is driven by key government initiatives and backed by project launches. As per a real estate industry survey, Abu Dhabi emerged as the fourth-biggest destination for executive nomads.  

  

Ajman, Sharjah, and RAK emerging realty hotspots

Ajman, Sharjah, and Ras Al Khaimah emerged as real estate hotspots offering solid investment opportunities. As per reports Ajman recorded significant growth in sales and rentals while Sharjah and RAK cemented their positions as hotspots for property purchases in the UAE. Infrastructural developments and effective urban planning are key drivers in increasing the appeal of the emirates.