News

VAT challenge geared towards governance, transformation and transparency

For immediate release
Sharjah, December 11, 2018

The second day of the fourth edition of the Sharjah FDI Forum saw panelists discussing the Impact of Taxes (VAT) on Global investments. The two-day event titled ‘Shaping the Future of Economies’ got underway at Sharjah’s Al Jawaher Reception and Convention Centre (JRCC).

The session on VAT focused on the link between taxation and foreign direct investments and the challenges of the UAE governments to create a tax regime that attracts investors on the one hand and on the other hand increase revenues.

The session was geared towards understanding if the economic development of any country represented in consumption (measured in VAT income for the country) and production (measured in the change in Corporate Income Tax) would create an increase in Foreign Direct Investments.

The process of openness to trade where governments are struggling to gain a competitive advantage in order to attract greater investment in their territory, experts reiterated: “VAT definitely puts the UAE on an equal footing and shoulder to shoulder with a lot of developed economies”, said Anuj R Kapoor, KPMG Lower Gulf Ltd Co-lead M&A and International Tax Advisory Services. He further added, “It’s about economic stability and economic certainty and about economic diversification”.

Further talking about the impediments that are experienced during its implementation along with technology as its accomplice, Anuj said, “Overcoming short term challenges and to strategies for long term hurdles is key to everything, but people are at the center of everything. People have to be ready for the change, to embrace the change and be ready to apply technology, using technology to get on the positive side of the economy. From an international perspective the idea is based on governance, transformation and transparency. That’s where technology can be very important.”

Speaking at the event was also James George, Euromonitor Consultant who said, “Mapping out taxes in business processes, in transactions is key, extremely important to identify when transactions are done, and the technology infrastructure is built on business processes. How does the transaction get mapped across the block chain?”

The panelists agreed that the UAE has one of the cheapest VAT rates globally. The global average of VAT or similar tax is around 19 per cent.

Sharjah is a prime destination for investment in health and clean energy
sectors
During a session titled ‘Strengths and advantages of investing in Sharjah: What makes it an ideal business hub’, Sharjah government officials highlighted the thriving investment climate in the emirate, noting great opportunities in the health and environment sectors.

HE Dr. Abdul Aziz Al Muhairi, Director of Sharjah Health Authority, said they are working on making the emirate a preferred destination for health tourism sector, and have conducted studies showing investment opportunities in the emirate with emphasis on physical and rehabilitation therapy, cancer, cardiovascular sectors.

Similarly, Fahad Shehail, group chief of staff at Bee'ah, said the emirate is primed for investment in clean energy. “Clean energy provides a huge and promising market for investment in the emirate. The company has conducted numerous important studies in the field of recycling and converting to clean energy. Investors can review them and utilize them to formulate sustainable investment opportunity for them.

Mohamed Juma Al Musharrkh, CEO of Invest in Sharjah, said the emirate is working around the clock to facilitate and enhance the investment opportunities in the emirate. “The FDI outlook in Sharjah is bright amidst turmoil globally. Here in Sharjah, we provide a stable investment climate and advanced infrastructure to make sure businesses thrive locally and gain access to neighboring and international markets from the heart of Sharjah.”

Careem’s Samir Satchu on the future of mobility
Discussing on the sidelines was also another presentation on the ‘Future of Mobility’. Talking about intelligent transport systems, sustainable mobility, ease of payments and connectivity was Careem’s Samir Satchu who highlighted the vision of transportation network companies saying, “our vision is to simplify people’s lives, if you don’t simplify people’s lives you are not achieving an impact”. Striving to collaborate with governments across the GCC their aim is also to provide deliverables not only in terms of riding people from one place to another but also using technology to fill gaps that can partner with the state to deliver government services as well.

The Sharjah FDI Forum, which was first launched in 2015 under the patronage of His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, was
organised by Sharjah FDI Office (Invest in Sharjah) with the support of the Ministry of Economy, and in strategic partnership with CNBC Arabia.

The fourth edition seeked to boost the emirate’s endeavours to attract more foreign investments, promote opportunities in main sectors, and strengthen the UAE’s position as a top investment destination in the region and the entire world.

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About Invest in Sharjah:
Established in 2016, the Sharjah FDI Office (Invest in Sharjah) is the investment promotion agency of the Emirate of Sharjah, launched by the Sharjah Investment and Development Authority (Shurooq). It also functions as a key facilitator to investors, servicing them with a 360-degree informative and physical support, allowing them to fully understand processes, investment advantages and insights on key sectors that fit their business profiles in Sharjah.

As one of the emirate’s key economic growth drivers, Invest in Sharjah is dedicated to the continued transformation and economic diversification of the emirate, and is committed to guiding foreign investors to the unique opportunities and potentials that Sharjah offers to global markets. Its mission is to work collectively with the emirate’s public and private sectors, to guide investors towards strategic and personalised opportunities, promoting collaborations for bilateral growth and update investors on Sharjah’s unique business culture, modern facilities, latest regulations and policies as well as business platforms and free zones that incentivise new prospects.

Invest in Sharjah also works in close partnerships with numerous state entities in the emirate, and has hosted numerous business roundtables and seminars in Sharjah and across the world, attracting unique investments and future ventures with business leaders from The Americas, Europe, Middle East, Gulf Region, Asia and the wider Asia-Pacific Region.

Invest in Sharjah has organised and participated in numerous leading business and investment conferences and seminar in Sharjah and the rest of the world. It is responsible for organising / hosting the Euromoney Conference Sharjah, the Sharjah FDI Forum, the Sharjah Ramadan Majlis and a number of high-level businesses conferences.

For more information, please visit www.investinsharjah.ae or you can contact +971 6 556 0444. For the latest news on Invest in Sharjah on social media, follow @investinsharjah on Twitter and Instagram.