Page 18 - Focus Group

ATTRACTIVENESS OF UAE

The UAE and Dubai in particular transshipment center. This has from Oil over the years and
has been attracting lot of eventually helped the UAE to realized that it cannot depend on
businesses over the past three become an important place in Oil in the long run. This prompted
decades. The meteoric rise the business world. the Federal Government to come
of Dubai as one of the most up with the Post-Oil Strategy in
important cities in the world over The attractiveness of UAE and January 2016. As part of the Post-
the last three decades has been Dubai in particular has been Oil Strategy the UAE Government
remarkable and unparalleled. further supplemented by the in coordination with the other
creation of various Economic GCC States came up with the
The country is going to Free Zones. These have not only Framework for introduction of
celebrate in 2021 its 50th attracted businesses to Dubai Value Added Tax.
year of formation as a and UAE but they have also

Federal Country made up attracted migratory population VAT was introduced in UAE
into the country.
of 7 independent emirates. and KSA on 1st January
Dubai has competed Customs Law 2018 and has been a very
with well-established The entry and exit of goods successful initiative with
and advanced cities like into the country is monitored unprecedented levels of
London, New York, Paris, and controlled by the Customs compliance. The greatest
Singapore, Hong Kong and Authorities and it was felt advantage of the VAT is
appropriate to levy Customs
has today become one of Duty on all goods arriving in the need for maintaining

the top 5 cities and most UAE with some exceptions. proper books of account
by all entities. UAE is
attractive destinations in This customs duty on import of characterized by the
the world. goods was unified across the
GCC. Customs operations have presence of more than
The investment made in been very smooth at all the entry 90% Small and Medium
the infrastructure like Sea points. The understanding of the Enterprises and today all
Ports, Airports, Roads, Customs Law by the businesses
Telecommunication, etc. has has been very clear and hence of the SMEs have started
certainly helped in positioning the there are no issues relating to maintaining proper
country as one of the foremost. compliance with the Common books of account due
By its strategic location Dubai has Customs Law. to compliance with VAT
also emerged as the mouthpiece regulations.
of the whole of Middle East Value Added Tax
and thus become an important UAE has been generating revenue

18 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO