The UAE is the third-richest country in the world, below Luxembourg at number two and Qatar at number one, with a GDP per capita of $57,744. The bulk of its money comes from the production of goods and provision of services related to petroleum, petrochemicals, aluminium and cement.
- Since the early 1980s, the family has funded the city’s boom, funneling money into construction, hosting mega-sporting events and establishing tax-free mini-cities like the Dubai International Financial Centre. The strategy has worked. Today, oil accounts for very little of Dubai’s revenue, yet the emirate’s gross domestic product has exploded.
Where does Dubai get its money from?
Its diverse economy makes Dubai one of the richest in the world. Unlike other states in the region, Dubai’s economy doesn’t rely on oil. The growth of its economy comes from business, transportation, tourism and finance. Free trade allowed Dubai to become a wealthy state.
How does Dubai make money with no tax?
Like the rest of the UAE Dubai earns its revenue mainly through the oil industry and uses its no-tax policy to attract skilled expats and global companies to diversify and enrich its economy further.
How is the UAE government funded?
The UAE economy is heavily reliant on revenues from petroleum and natural gas, especially in Abu Dhabi. In 2009, more than 85% of the UAE’s economy was based on the oil exports. In 2011, oil exports accounted for 77% of the UAE’s state budget. The UAE is a member of the World Trade Organization and OPEC.
How do the government make money in Dubai?
Dubai does not impose tax on wages and income salaries. The Major sources are Government fees (62%) and Tax revenues (23%). Here are the various tax revenues: Oil companies pay a 55% in addition to paying royalties.
Is there poor people in Dubai?
The UAE is one of the top ten richest countries in the world, and yet a large percentage of the population lives in poverty — an estimated 19.5 percent. Abu Dhabi and Dubai control 83.2 percent of the UAE’s wealth.
Why is UAE so rich?
The UAE is the third-richest country in the world, below Luxembourg at number two and Qatar at number one, with a GDP per capita of $57,744. The bulk of its money comes from the production of goods and provision of services related to petroleum, petrochemicals, aluminium and cement.
Is healthcare free in Dubai?
As stated earlier, the UAE has free public healthcare for Emirati nationals. Non-residents will have to pay significantly higher fees for treatment at a hospital or clinic. However, these costs are subsidized and the standard of care is high at both a public and private facility. 4
Is it cheaper to live in Dubai or England?
Cost of living in Dubai (United Arab Emirates) is 30% cheaper than in London (United Kingdom)
What is a good salary in Dubai?
Dubai has a good average salary range, extending from a monthly salary of 4,810 AED (1,309.56 USD) to 99,000 AED (26,953.44 USD) per month. The average salary range only considers salaries that fall between the average minimum salary and the average maximum salary in Dubai.
Are there no taxes in Dubai?
The UAE does not levy income tax on individuals. However, it levies corporate tax on oil companies and foreign banks. Excise tax is levied on specific goods which are typically harmful to human health or the environment.
Which country is tax free?
Monaco: The tiny European city-state imposes zero tax on citizens income. Qatar: Another oil-rich Arab kingdom on the list is the tiny nation located on the Persian Gulf. Saint Kitts and Nevis: The tropical island nation situated between the Atlantic Ocean and the Caribbean Sea is another nation with no income tax.
What is the main income of Dubai?
Most tourists believe Dubai’s revenue comes primarily from oil but only a moderate amount of oil reserves were used to generate the required infrastructure for trade, manufacturing and tourism, in order to build up Dubai’s economy. Most of Dubai’s GDP (over 95%) is non-oil-based.
How much money is Dubai in debt?
Banks’ provisions for bad and doubtful debts in the United Arab Emirates amounted to nearly $42 billion as of November last year, up from $36 billion at the end of 2019, according to central bank data.
Is Dubai expensive to live?
According to the Mercer Cost of Living, Dubai is an expensive city. It ranked as the 23rd most expensive out of 209 destinations. However, it is about 25% less expensive than New York City – and about 4% less expensive than nearby Abu Dhabi. As such, depending on where you live now, Dubai might look like a bargain.
Economy of Dubai, UAE
The economic shifts that have shaped Dubai into the metropolis that it is today are discussed here. Dubai is the second wealthiest emirate in the United Arab Emirates, behind Abu Dhabi, which serves as the country’s capital. In addition to being a major commerce and tourism attraction, the city’s port (JebeL Ali) serves as the regional hub for export trade in the Middle East. Since the establishment of the Dubai International Financial Centre (DIFC) in 2004, the city has grown into a global centre for service sectors such as information technology and finance, among others.
The non-oil sector accounts for the vast majority of Dubai’s GDP (more than 95 percent).
These statistics illustrate why Dubai has transformed its economy into one that is more dynamic and diverse in order to survive the depletion of fossil resources.
The Burj Al Project (Burj Al Arab Hotel), which began in 1994 and is intended to be a long-term plan with the goal of becoming Dubai the world’s premier tourist destination, provided the economy reason to be optimistic.
- Some of Dubai’s most important investments have been severely hampered as a result of the worldwide economic downturn that has recently taken place.
- As a result, the majority of its ongoing projects, as well as the jobs of its expatriates, were adversely affected.
- Dubai has also positioned itself as a global technology hub that provides services to areas such as finance and information technology.
- Due to a promising growth rate of 6.1 percent in 2014, Dubai appears to be on its path to become one of the Middle East’s fastest-growing economies.
- By 2014, China has been regarded as Dubai’s most important commercial partner, followed by India and the United States.
- In 2018, Dubai had 15.93 million tourists, maintaining its position as the world’s fourth most popular tourist destination overall.
Due to the fact that the city is home to approximately 250 gold businesses, Dubai is appropriately known as the ‘City of Gold.’ Dubai has been awarded the proposal to host the much-anticipated Expo 2020, which would provide a significant boost to the local economy and is estimated to generate more than 270,000 jobs.
Income breakdown: A look at the government’s main revenue streams
According to the International Monetary Fund, total government revenues in Dubai have more than doubled since 2003, when they were Dh10 billion ($2.7 billion). In 2011, they are anticipated to be Dh42 billion ($11.4 billion). Cash transfers from Abu Dhabi totaled over Dh10 billion ($2.7 billion) in 2011, according to the numbers. Although expenditures have historically been balanced to keep the budget deficit under control, the financial crisis of 2008 spurred the need for further economic stimulus measures.
- During this year, government expenditures totaled Dh92 billion ($25 billion), while income totaled little more than Dh40 billion ($10.9 billion).
- While each emirate has the right to amend this regulation, none has taken the initiative to do so at this time.
- According to the International Monetary Fund, oil is just a modest addition to Dubai’s GDP, with total government income from oil and gas being little over Dh5 billion ($1.4 billion) in 2011.
- For the provision of rooms, food, and other services, hotels and entertainment venues are subject to a 5 percent municipal tax.
- Many government-related entities pay royalties to the government, despite the fact that they are not subject to taxation.
- In 2010, receipts from these taxes accounted for just Dh7 billion ($1.9 billion) of the government’s overall revenues.
- As a result, Dubai is reliant on various sources of money to fund its annual operating budget.
Approximately Dh32.6 billion ($8.9 billion) is estimated to be collected in total governmental revenues for the year.
This is a large increase of over 10% from 2012, despite the fact that the government is not raising its costs for these services.
PREDICTIONS FOR THE FUTURE: The 2013 federal budget will be in deficit for the eighth year in a row.
Salaries and salaries are one of the most significant budget allocations, accounting for 39 percent of total expenditures.
Administrative expenditures will account for another 24 percent of total government expenditure, with subsidies for housing, sports, education, and other activities accounting for 11 percent of total government expenditure.
Security, hospitals, schools, and other associated social development sectors are among the other areas that have received funding.
Among other things, the Department of Economic Development is currently preparing the 2020 Economic Strategy Plan (ESP 2020), which will re-evaluate and reposition the current Dubai Strategic Plan 2015 in order to assist the emirate in responding to the effects of the global financial crisis and the Arab Spring.
In order to achieve longer-term economic goals, this plan will place a strong emphasis on increasing the productivity of investments in the emirate. It will also place a specific emphasis on assisting small and medium-sized firms, which continue to play a critical role in the local economy.
Dubai promises state support, new funding for Emirates airline
DUBAI (Reuters) – The United Arab Emirates (UAE) is a member of the Organization of Islamic Cooperation (OIC). Emirates, the state-owned airline that is one of the world’s largest long-haul carriers, would get cash from Dubai, the crown prince announced on Tuesday, as the government joined other governments in providing financial assistance to airlines. In this file photo taken on February 15, 2019, two Emirates Airline Boeing 777-300ER planes can be seen parked at Dubai International Airport in Dubai, United Arab Emirates.
- The United States has pledged $58 billion in assistance.
- It solely operates international flights, and the vast majority of its passengers transit via Dubai before continuing their journey.
- He stated that the government will release further specifics regarding the equity infusion and other measures in the near future.
- Tim Clark, the organization’s long-serving president, will step down in June.
- Maher Chmaytelli and Alexander Cornwell contributed reporting, and Alexander Cornwell wrote the piece.
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How Dubai Works
The royals of Dubai knew in the 1980s that the emirate’s primary source of revenue – oil – would not be sustainable for the foreseeable future. Oil was discovered in 1966, bringing life to a little desert community that had previously been renowned for its pearl exports and fishing industry, among other things. Sheikh Rashid bin Saeed al Maktoum, the ruler of Dubai from 1958 to 1990, is widely recognized for conceptualizing the city-state of Dubai. However, it is his son, Sheikh Mohammed bin Rashid al Maktoum, who has been ruler since 2006, who has seen the metropolis come to fruition.
- When he urges visitors to visit a target city in a difficult environment far away from other cultural centers, he is encouraging them to be creative and outrageous themselves.
- The company became profitable within a year of starting up and today services more than 80 destinations.
- For some, Dubai’s primary draw is the hotel, which serves as an indoor holiday in and of itself.
- Construction on the Burj Dubai, which will be the world’s tallest structure when it is completed in 2008, will be completed in 2008.
- Two bigger palm islands, as well as an archipelago designed like a map of the world, are also in the planning stages of development.
- In fact, there are plans to develop an area in which the buildings are designed to look like chess pieces.
The intentions of Dubai for regional financial dominance, as well as the Emiratis’ identity issue, will be discussed in further detail in the next section.
Emirates Airline Turns To Dubai Government For $2 Billion In Support Amid Coronavirus Crisis
On April 6, 2020, an Emirates aircraft will take off from Dubai International Airport in Dubai. The image is courtesy of KARIM.SAHIB/AFP via Getty Images. AFP photo courtesy of Getty Images According to a media source, the Dubai government has invested AED7.3 billion ($2 billion) in Emirates so far this year to assist the airline in surviving the coronavirus crisis. Since March, according to information obtained from a bond prospectus, Reuters has claimed that the funds have been transferred to the carrier.
- But because of the coronavirus epidemic and the grounding of the majority of the airline’s fleet in response to the healthcare crisis, the airline has been severely hampered.
- On April 6, the airline began some limited services, and since then, it has been steadily increasing its route network to make up for lost time.
- One of the passengers coming at Dubai International Airport on May 8, 2020, during the Coronavirus Covid-19 outbreak, being checked by a health professional.
- Sheikh Hamdan, who is also the head of the Dubai Executive Council, stated that further information will be released at a later date, but no formal statement of support has been made since then, according to the Dubai government.
- This represents a 21 percent increase over the previous year’s total.
Based on the experience of close competitors like as Etihad and Turkish Airlines during the epidemic, it is possible that its passenger numbers dropped by up to 99 percent at its lowest point during the pandemic. Undoubtedly, one of the most difficult challenges confronting airlines is convincing passengers that it is safe for them to fly again. This is especially difficult at a time when abrupt changes in official travel guidelines can leave travelers facing weeks of unforeseen self-isolation after flying.
It has requested that some staff take voluntary unpaid absence in an effort to save cash reserves.
On the 8th of May, 2020, an Emirates Airlines cabin crew member arrives at the Dubai International Airport. (Image courtesy of KARIM SAHIB/AFP via Getty Images.) AFP photo courtesy of Getty Images Become a follower of mine on Twitter or LinkedIn. Please visit my website.
UAE announces 50 initiatives to boost economy, but businesses await more details
Commuters in Dubai, United Arab Emirates, travel down Sheikh Zayed Road, passing business and residential complexes. Getty Images | Christopher Pike | Bloomberg | Christopher Pike DUBAI, United Arab Emirates — DUBAI, United Arab Emirates — A number of measures to boost and diversify the economy of the United Arab Emirates have been initiated, with the goal of attracting more than $150 billion in new foreign investment over the next decade. Officials in the United Arab Emirates have said that fifty new projects and initiatives would be revealed in the coming weeks to coincide with the country’s 50th anniversary, including new visas to attract residents and talented employees.
- It has been our goal for the previous five decades to develop the area; now we’re focusing on making a few of our industries more competitive on a worldwide scale.
- The Green Visa, which is intended to increase self-residency status for qualified persons and investors, as well as the Freelancers Visa, which will allow self-employed individuals to sponsor themselves, are examples of recently implemented modifications to the immigration system.
- Visas are a vital part of the UAE’s economy, which is dominated by expats who account for approximately 90 percent of the country’s 10 million inhabitants.
- The desert is rich in oil.
- For the first time late last year, the UAE introduced the remote worker visa, which allows individuals to live and work in the UAE for up to one year even if they are employed elsewhere in the world, as long as they earn a specified amount.
The measures, according to employment law experts who talked with CNBC, are a “major and good” move forward for business in the region. In the past, “primarily owing to visa and work permit constraints,” Kiersten Lucas, a partner at Dubai-based firm Stephenson Harwood, told CNBC, “it has been difficult for enterprises to run more flexible, unorthodox working arrangements outside the standard employment model.” Companies, on the other hand, are waiting for further information. According to Laura Anderson, an associate at the same company, “businesses and people alike will eagerly await additional clarification from the authorities on how the new visas would function in practice.” The minister continued by stating that many employers will be interested in knowing to what extent the changes “give them increased flexibility to contract directly with individuals on a more traditional consultancy basis” without being bound by the current legal obligations surrounding a company’s relationship with its employees in the United Arab Emirates.
Despite the absence of specifics at this time, Chris Payne, chief economist of Peninsula Real Estate in the United Arab Emirates, described the move as smart.
“It’s a realization in the UAE that expats are here for the long-term, they’re here to stay.” “And it has an immediate impact on other firms, and it has an evident influence on the real estate market, which is why it is being addressed piece by piece.” “A lot of the time, it’s only after the fact that you learn the true details,” he added of Sunday’s statements.
“However, the specifics will be revealed later. When it comes to the visa reforms, everyone is really optimistic, even if we are still waiting for the specifics.”
This plan comes at a time when the United Arab Emirates and neighboring Saudi Arabia are becoming increasingly competitive to be the region’s commerce and commercial powerhouse. The United Arab Emirates, and notably Dubai, has long been regarded as the economic hub of the area, bolstered by sophisticated transportation and logistics infrastructure and strategically located at the crossroads of east and west trade routes. On January 16, 2021, people walk by the official sign announcing the Dubai Expo 2020 at the Sustainability Pavilion in Dubai, which is part of the World Expo 2020.
- AFP |
- KARIM SAHIB |
- In addition, it declared in February that its government will discontinue doing business with any multinational corporations whose regional offices were not headquartered in the kingdom by the end of the decade 2024.
- ‘Competition is definitely beneficial in many situations,’ Payne explained.
Consequently, when one examines the various trade and investment statements, one can see that while there is rivalry inside the GCC, our ambition extends beyond that region and beyond the GCC.” The answer to what has been happening in Saudi Arabia is unquestionably a negative one, but it is a constructive one; it is saying ‘we can rise to the challenge.'”
Dubai’s economy shows promising growth after slumping 11% last year
Photographs by Frantic00 | iStock | Getty Images DUBAI, United Arab Emirates — DUBAI, United Arab Emirates — According to figures from the Dubai Statistics Center, Dubai’s GDP declined by 10.9 percent year on year in 2020, indicating a city that was heavily damaged by the coronavirus epidemic and the suspension of worldwide tourism. 3.4 million people live in Dubai, which serves as the commercial hub of the United Arab Emirates. The city’s economy is primarily reliant on businesses including as hospitality, tourism, retail, and travel, all of which suffered significant setbacks during the first year of the epidemic.
- However, growth has accelerated this year, with figures for the first quarter of this year indicating an 11 percent increase from the previous quarter, despite a 3.7 percent fall year-on-year.
- Travel and tourism remained below pre-pandemic levels, but the two largest sectors of the economy — wholesale and retail trade and financial services — experienced year-on-year growth of 2.8 percent and 3.5 percent, respectively.
- As much of the globe increases security precautions in the wake of the COVID-19 coronavirus epidemic, Dubai remains open for business, marketing itself as a sunny, quarantine-free getaway – despite a dramatic increase in cases.
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- KARIM SAHIB |
- Getty Images When Dubai opened its doors to tourists again in July of 2020, it was one of the first cities in the world to do so following an extremely stringent lockdown that saw citizens locked to their houses and only allowed to leave with permission from the police.
- After becoming a hotspot for visitors seeking a return to normalcy in the winter months, the emirate became a no-go zone for numerous nations, including the United Kingdom, after an outbreak of Covid infections in February.
- Analysts at Dubai-based bank Emirates NBD wrote in a note released Monday that they expect annual GDP growth to rebound from last year’s low annual base starting in Q2 2021.
- Although “travel restrictions have eased in recent weeks,” the bank expects growth to accelerate in the fourth quarter.
In terms of the entire United Arab Emirates, the report predicts “whole UAE GDP growth of 1.9 percent this year, up from -6.1 percent earlier.” A rise in international tourism, combined with one of the world’s fastest vaccination campaigns, positions the United Arab Emirates to see increased tourism numbers during the winter months of the fourth quarter, when warm weather and relaxed Covid restrictions are expected to attract visitors from colder climes.
Expo 2020, Dubai’s six-month mega-event that has been delayed by a year owing to the epidemic, is expected to be a big tourism attraction, according to the city.
Real estate recovery to be uneven
Meanwhile, the real estate industry, which had already been in decline for several years when the pandemic began, is seeing a robust but uneven recovery, which has been exacerbated in part by what many market analysts consider to be excessive construction. The disparity between supply and demand in the real estate market has been increasingly apparent because Dubai’s majority-expatriate population declined by 8.4 percent in 2020 as a result of the pandemic, the highest population loss in the Gulf area to yet.
Foreigners may now live and work in Dubai without having to partner with a local company, according to visa and business changes implemented by the emirate.
As a result of the epidemic, the World Expo 2020 in Dubai will start a year late in October, which will likely be beneficial to the real estate sector, according to the S P analysts.
We Got Funded: Dubai-Based Startup Pluto Raises US$6 Million In Seed Round To Enhance Corporate Spend Management Across The MENA
Entrepreneurcontributors express their own opinions, which are not necessarily those of Entrepreneur. Entrepreneur Middle East is an international franchise of Entrepreneur Media, and you are now reading it. In a seed round headed by GFC and with participation from Adapt Ventures, Soma Capital, Graph Ventures, and OldSlip group, the Dubai-based corporate expenditure management firm Pluto has received US$6 million (AED22 million). Pluto was founded by Nayeem Zen, Mo Aziz, and Mohammed Ridwan, who are also co-founders.
- As an alternative to personal cards, Pluto provides spending management solutions for organizations by supplying limitless smart corporate cards with spend controls that may be used as an alternative to personal cards.
- Available for employees in both physical and virtual forms, these smart cards may be linked to existing business bank accounts and can be used to access company resources.
- Notably, the Pluto platform also immediately syncs the transactional data from the cards to the major accounting platforms, such as QuickBooks.
- Spreadsheets, invoicing tools, accounting tools, and expenditure monitoring software are examples of such tools.” He goes on to explain that resolving this issue is at the heart of Pluto’s mission and services.
Aziz notes that “currently, the majority of firms in the region only have access to a single debit or credit card with no spend controls, which is incredibly unsafe to distribute throughout the entire organization.” Businesses are forced to provide cash to workers for company expenditures, and individuals are burdened with an exorbitant amount of out-of-pocket spending as a result.
In the first place, the distribution of funds creates an environment in which malpractice can occur inside a specific organization owing to a lack of instant responsibility.
Aziz brings out another similar issue that affects a company’s expenditure control management in this section.
Business owners can be proactive rather than reactive, and save money even before spending by connecting their existing bank accounts and issuing unlimited virtual and physical cards with spend controls, which eliminates the need to distribute cash or rely on personal cards, according to Aziz.
“Businesses also benefit from real-time visibility into costs made using Pluto cards, which significantly reduces the number of fraudulent transactions.” In addition, it alleviates the pressure on employees, who no longer have to spend company costs and rely on monthly reimbursements.” As a result of this operating structure, Pluto generates two major sources of revenue: a membership fee charged to enterprises, and an interchange fee applied to vendors.
Despite the fact that we operate on a freemium model, which allows any business to use the base version of Pluto’s platform for free, we charge a subscription fee for our premium tier, which grants access to unlimited corporate cards as well as detailed insights into business spend data, as explained by Aziz.
It is explained by Aziz that “the seller is charged a set amount for taking a credit card,” and that “this amount is dispersed among multiple participants, with the majority of the cost going to the issuer of the card, which is often a bank.” Plato cards will be powered by our partner bank, with whom we will split a percentage of the interchange fee, which is a monetary cost charged to the cardholder.
In essence, our clients are not required to pay any costs in this situation.” At a time when digitalization of payments is rapidly becoming the norm across all industries, this second income stream is particularly advantageous.
Moreover, according to Aziz, this is a trend that presents prospects for Pluto’s continued expansion.
Online purchases, on the other hand, will become a piece of cake with Pluto.
A significant push towards online and digital payments is also being seen in many government offices, which further widens the use cases for Pluto’s services beyond simply facilitating an employee’s everyday costs.” Aziz and his colleagues are currently working on launching Pluto in the United Arab Emirates as soon as possible, thanks to the recent influx of funding.
“In 2022, we consider ourselves extremely fortunate to have the support of the Dubai International Financial Center and fintech hive, who will subsidize licensing costs and office space, as well as provide you with a platform to connect with customers and partners, allowing you to get up and running faster than ever.” In light of the company’s ambitions to introduce its product in Saudi Arabia later in the year, it will be fascinating to see how firms in the area react to Pluto’s services.
Related:Startup Spotlight: Community-based platform Hayi raises US$325,000 as it looks to expand its services beyond the UAE’s neighborhoods Related:Startup Spotlight: Community-based platform Hayi raises US$325,000 as it looks to expand its services beyond the UAE’s neighborhoods
The aforementioned scholarships provide the chance to undergraduate students to carry their scholarship prizes to the UK campus in Year 2. These scholarships are only eligible for Year 2 undergraduate course and will not be applicable in Year 3, should the student continue the study in the UK campus.* These scholarship grants are based on both projected and final grades, and are subject to the correctness of results stated in the application form versus the actual results submitted for admittance.
Meet some of our Provost Academic Scholarship Awardees
The Chancellor’s Scholarship will enable me to offer something back to future generations, and I am overjoyed to have been given it as I begin this new professional path. This is an incredible opportunity for me, and being able to do so via a worldwide top 100 and elite UK Russell Group institution here in Dubai is an incredible blessing that I am looking forward to.”
“When I learnt that I had been selected for this renowned prize at such a large university as the University of Birmingham, I felt a surge of joy and delight pour through my body. The fact that I have been selected as one of the few recipients of this award makes me feel tremendously thankful and honored. I’m confident that I’ll be able to make the most of this unique chance.” Please send an email to [email protected] for the complete terms and conditions of our Scholarships.
Investment Funds in the Dubai IFC: A Lighter Touch Coming?
In the United Arab Emirates (the “UAE”), there are now a variety of alternative methods for founding and offering investment funds, and all of these choices are strictly regulated. Establishing a fund in the Dubai International Financial Centre (the “DIFC”), an economic free zone located in Dubai that was founded as an international financial centre with its own set of rules and regulations, is one of the options available for investors. The Dubai Financial Services Authority oversees the regulation of financial services in the Dubai International Financial Center (the “DFSA”).
When this regime was liberalized in 2010, the goal was to promote the DIFC as a desirable worldwide platform for the management and establishment of funds.
Therefore, ideas to launch a new category of fund in the DIFC with less onerous regulatory requirements are already well progressed, allowing the DIFC to compete even more effectively with the world’s other major fund centers in the near future.
Domestic Funds are established and managed in the DIFC by fund managers that meet one of the following requirements:
- Be directly licensed by the DFSA and based in the DIFC
- Operate from a jurisdiction that has been recognized by the DFSA (for the purposes of which the DFSA publishes a “Recognized Jurisdictions List”) or that the DFSA has determined to provide an adequate level of regulation (an “External Fund Manager”)
An External Fund Manager is needed to nominate a DFSA-licensed fund administrator or trustee, who will be expected to perform a number of duties, including serving as the External Fund Manager’s local agent in dealing with the DFSA and its regulatory processes in the United Kingdom and Ireland. Domestic funds offered by the DIFC are classified into many categories. Current Domestic Funds options are accessible in the DIFC, and they include the following:
- Funds provided by the government. It is possible that public funds may have more than 100 investors, that they would be offered to investors through a public offering, and that their investors will include retail investors. Because public funds are available to ordinary investors, they must comply with stringent prospectus, transparency, and regulatory requirements. Funds that are exempt from taxation. According to the applicable DFSA laws, exempt funds may have a maximum of 100 investors and must be issued exclusively through private placement. Additionally, all investors must be “professional clients” according to the requirements set out in the relevant DFSA regulations. Exempt funds are subject to the same qualifying requirements as private funds, with the exception of a minimum subscription of US$50,000 from each individual investor. Exempt funds are subject to less regulation than public funds, however they are nevertheless heavily controlled by the DFSA to a large extent.
Types of Fund Vehicles, as well as the application process for Specialist Funds A Domestic Fund can be established in the DIFC using one of three types of fund vehicles now available in the DIFC. These are:
- Company engaged in the business of investing. There must be an investment company established in the DIFC, and the fund manager must serve as a corporate director of the Investment Company. A general purpose fund or an investment trust is a good fit for this type of entity. A trust deed between a fund manager and a trustee is required in order for an investment trust to be created. In order to provide custody or depository services, the trustee must either be licensed directly by the DFSA (and headquartered in the DIFC) or be someone who has been regulated and monitored in a “reputable jurisdiction” for such services. Investment trusts are frequently used to arrange property funds. If they are public funds, property funds in the DFIC must be closed-ended funds, and they are subject to extensive additional regulation as a result. Real Estate Investment Trusts (“REITs”) are available as a specific fund structure in the DIFC, subject to additional regulations. REITs must be public funds that are traded on an authorized exchange or clearing house
- Investment Partnerships are also available as a specific fund structure in the DIFC, subject to additional regulations. An investment partnership is a limited partnership that is registered with the Dubai International Financial Center. The General Partner must have been granted permission to function as the fund manager by the DFSA directly. As a result, private equity firms are frequently organized as investment partnerships.
A Proposed New Category of DIFC Fund has been proposed. In December 2013, the DFSA published a consultation document proposing a new category of Domestic Fund that would be much less heavily regulated than the existing category. The “qualified investor exempt fund” falls into this category (“QIEF”). After reviewing other jurisdictions with exempt funds or similar regimes, including Bahrain, the British Virgin Islands, Luxembourg, the Cayman Islands, Ireland, Singapore, and the United Kingdom (among others), the DFSA came up with the proposal to establish the QIEF, according to the agency’s statement.
This has resulted in the submission of this proposal.
- It is necessary to have a minimum subscription of at least US$1 million, as well as a maximum of 50 investors, each of whom must be a “professional client.”
QIEFs will be allowed to be offered solely through private placement, as opposed to public offerings. Qualified institutional equity funds (QIEFs) are being considered as a reaction to the large number of applications that have been received by the DIFC requesting exceptions from or amendments to certain components of the DFSA’s regulatory system in the context of setting up exempt funds. As a result, the proposed relaxations are a targeted reaction from the DFSA to the notion that regulation of exempt funds in the DIFC is still deemed to be excessively onerous by some for the purposes of creating a fund aimed at professional investors in the region.
- Removal of the majority of specialist fund regulatory requirements
- Elimination of the requirement to appoint a custodian
- Significantly reduced disclosure requirements in the fund constitution and information memorandum
- And the requirement to file only annual reports (unless there is a “material change,” in which case an interim report will still be required).
However, while the proposed regulatory regime for QIEFs is significantly less stringent in terms of the regulation of the fund itself, fund managers will still be required to be licensed by the DFSA and will be subject to the DFSA’s general duties, systems, and controls, which are currently in place. This emphasis on fund manager regulation is also a reflection of changes in other significant funds jurisdictions, such as the recently implemented AMIFD system in the European Union, which focuses on fund manager regulation.
- The introduction of the QIEF, which might come as early as the fourth quarter of 2014, should further enhance the DIFC’s credentials as a hub for fund formation, and we look forward to seeing these ideas put into action.
- Please use our “Contact Us” form, which may be located at the address above, to send general email inquiries.
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The United Arab Emirates offers a comprehensive, government-funded health service as well as a fast rising commercial health industry that provides a high level of health care to the general public. Different federal and emirate-level regulatory bodies, including the Ministry of Health and Prevention, the Health Authority-Abu Dhabi (HAAD), the Dubai Health Authority (DHA), and the Emirates Health Authority, are in charge of administering public healthcare services (EHA). Most infectious illnesses, such as malaria, measles, and poliomyelitis, that were previously common in the United Arab Emirates have been eliminated.
The rate of maternal mortality has reduced to three deaths per 100,000 births.
According to UAE legislation, employers are required to offer health insurance for their expatriate employees.
More information about the UAE’s reaction to the COVID-19 epidemic may be found by clicking here.
World Class Healthcare in the UAE
In recent years, both Abu Dhabi and Dubai have taken initiatives to provide world-class healthcare and to stimulate innovation in the medical profession, respectively. The Health Authority in Abu Dhabi is trying to enhance the quality of treatment, extend access to services, transition from public to private providers in a safe and efficient manner, and establish a new finance model through an innovative system of compulsory health insurance. The Dubai Health Authority performs a dual function in the Dubai healthcare system, serving as both a regulator and an operator.
In Dubai, there are two “free zones” for health-care services.
The facility includes two hospitals as well as more than 120 outpatient medical centers and diagnostic laboratories with more than 4,000 licensed medical professionals on staff.
It is the world’s first free-zone dedicated to life sciences.
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What is Dubai and who runs it?
If the government of Dubai does not get assistance, it may face bankruptcy within a few years. With the collapse of the international economy, the sparkling metropolis in the desert has gone from being the pinnacle of prosperity to being on the verge of bankruptcy. Some of the background information is provided by Christopher Davidson of Durham University. A global economic crisis has erupted as a result of Dubai’s government’s inability to refinance the massive debts incurred by its largest state-owned company, Dubai World.
- BACKofNEXT In spite of the fact that Dubai is commonly referred to as a city state or even as a nation in its own right, it is really a constituent member of the United Arab Emirates’ Federation, together with six other emirates.
- Control The city of Dubai, on the other hand, has always retained a sense of independence inside the federation, owing to its long history as a thriving free port.
- Gradually, Dubai allowed itself to become more thoroughly integrated into the United Arab Emirates, eventually turning over its militia – the Dubai Defence Force – to the UAE in 1996.
- With limited oil reserves, Dubai’s only hope of keeping its separate character from Abu Dhabi was to diversify at a rapid pace, developing a variety of non-oil industries such as luxury tourism and real estate, among others.
- The advent of the financial crunch, however, resulted in a significant amount of this accomplishment being undone, as foreign direct investment and consumer desire for these activities declined.
- Dubai World has been a major contributor to the emirate’s remarkable economic expansion in recent years.
- Dubai was able to stay afloat thanks to some modest financial support from Abu Dhabi, which was provided both in February 2009 and again earlier this week.
If Abu Dhabi does not give more assistance, the government of Dubai will be forced to declare bankruptcy within a short period of time.
Hundreds of thousands of migrant workers contributed to Dubai’s economic growth.
In fact, there was violent warfare between the two neighbours as early as the 1940s.
Furthermore, future aid from Abu Dhabi is not assured at this time.
Thousands of migrant workers, largely from South Asia, are already trapped in the emirate, and the number is expected to rise in the coming weeks as more businesses close their doors or reduce their workforces to the bone.
Many other expatriates, some of whom are Westerners, will also lose their jobs, and the many foreigners who made substantial investments in the emirate’s much-heralded real estate sector may suffer significant losses on the properties they purchased as investments, retirement homes, or vacation villas.
Dubai: The Vulnerability of Success, written by Christopher Davidson, is a bestseller.
Government Funded Digital Acceleration in Dubai
Being in Dubai gives the impression of being in the future. In the scorching desert heat, the city is ablaze with sparkling buildings that are both beautiful and dangerous, with vertiginous heights and defying gravity as places to work, live, and shop—and boy, do they love to shop! To put it bluntly, the magnitude of the place is mind-blowing—it seems like Las Vegas on steroids, or as if Las Vegas were imagined today rather than fifty years ago. I was fortunate enough to be invited to co-host a workshop on the Work Ahead with my colleagueMani Bahl, which was a great opportunity.
Make no mistake about it, Dubai has experienced difficulties since the financial crisis of 2008.
Although the International Monetary Fund (IMF) expects that growth in Dubai and the other six sheikdoms that make up the United Arab Emirates would be 2.5 percent this year, it was 4 percent in 2015, and government spending is expected to climb by 3 percent this year.
As a result, it should come as no surprise that Dubai’s cherished “tax-free” status, which expats adore, is coming under pressure.
For the region’s long-term development, it is believed that new technologies that spur creativity and novel working methods would be essential.
On a more practical level, you can see the effects in everything from the city’s open data projects (which rival anything we do in Europe, Estonia apart) to the day-to-day operations of operating a city.
The hyper-loop is truly the stuff of the future, or, more accurately, how I imagined the future when I was on the train in the 1970s, replete with stale cheese sandwich (if you’re from the United Kingdom, you know what I’m talking about).
I’m not sure if this is a good or a negative thing at this point.
Earlier this month, the government-backed “Smart Dubai Office” unveiled a roadmap for the development of artificial intelligence, with the first robot officer expected to join Dubai’s police force the following month.
Face recognition technology is now being used on Dubai’s roadways, and it is advanced enough to be able to distinguish a person’s face even if they are seated behind a tinted windshield visor.
With this data in hand, the goal is to correlate it with a bio-sensor feed from the weapon’s bearer in order to measure his (or her) heart rate and stress levels.
For the time being, at least.
In our Future of Talentresearch, we advocate that firms create accelerators to address specific problems or obstacles, such as, for example, employee retention “We need to find a way to make this process more intelligent.
Accelerators also aim to swiftly develop and scale new ideas and concepts.
It does this by attracting and retaining the best talent in the region (charging almost no tax undoubtedly helps), but it also works to promote collaboration and knowledge exchange throughout the UAE.
Dubai is attempting to establish itself as a regional and international healthcare powerhouse for the Middle East and Africa.
a section of the city that has been zoned off with its own rules and freedoms in order to attract the talent it requires What does the expansion of this talent cluster imply for Dubai’s future? This will be discussed in greater depth in my upcoming piece.