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Tuesday, 1 February 2022

The UAE’s days as a corporate tax haven are coming to an end (sort of)

Businesses are going to start paying tax in the UAE for the first time ever next year after the government yesterday announced it would introduce a federal corporate tax from 1 June, 2023.

It’s not going to be a lot, though: Businesses will pay a 9% tax on profits, one of the lowest corporate tax rates in the world.

And the rest of the zero-tax regime will remain: Companies that do business in freezones will not be subject to the new tax provided they don’t trade with the mainland, and individuals will continue to pay no income tax.

The rationale: The government says it’s introducing a corporate tax to align with international standards and crack down on tax avoidance — and that the move would pave the way for a different, global rate to be applied to big multinationals. The UAE has signed on to the OECD’s plan to institute a global minimum corporate tax of 15%

Citigroup is hiring as it vies for Gulf listings: Citigroup is increasing its presence in GCC countries ahead of what it predicts will be another record year for IPOs in the region, Bloomberg reports. The bank is boosting its existing Saudi and Dubai offices and “adding resources all across the region,” joining Goldman Sachs and others looking to capitalize on strong Gulf IPO pipelines as listings elsewhere drop off.




+0.3% (YTD: -3.8%)



Buy 15.66

Sell 15.76



Buy 15.66

Sell 15.76


Interest rates CBE

8.25% deposit

9.25% lending




+0.1% (YTD: +8.8%)




-0.7% (YTD: +2.5%)




-0.5% (YTD: +0.2%)


S&P 500


+1.9% (YTD: -5.3%)


FTSE 100


-0.0% (YTD: +1.1%)


Brent crude

USD 91.21



Natural gas (Nymex)

USD 4.94




USD 1,798




USD 38,474

+1.3% (as of midnight)


The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 647 mn (41.5% below the 90-day average). Foreign investors were net sellers. The index is down 3.8% YTD.

In the green: TMG Holding (+8.6%), Qalaa Holdings (+5.2%) and Madinet Nasr Holding (+4.0%).

In the red: CIRA (-3.6%), Fawry (-1.8%) and CIB (-1.0%).

Major Asian benchmarks are solidly in the green this morning with just Shanghai slipping into the red. All major European benchmarks look set to follow suit later today. The story is a bit different across the pond, where futures suggest Wall Street will see the S&P, Nasdaq and Dow all open in the red at the opening bell.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.