THE FISCAL IMPACT OF A TAX-FREE SYSTEM
Simon Davari, CPA, CA
SdM Chartered Professional Accountants
OVERVIEW OF THE ECONOMIC SITUATION
Lecturer, University of Sherbrooke
Middle-Eastern and North African Observatory
EDC’S SERVICES IN THE EMIRATES
Regional Manager | MENA, Eastern Mediterranean & Caucasus
International Business Development Group
Export Development Canada
UAE, A LOOK INTO THE CULTURE AND MORE
Canadian management Consulting
DOING BUSINESS IN THE UAE
Roussin Larose Lessard
TESTIMONIAL FROM QUEBEC BUSINESS ON ITS BUSINESS DEVELOPMENT IN THE EMIRATES
President and CEO
A UNIQUE OPPORTUNITY TO…
- Understand the business context of the UAE market and its evolution
- Get expert advice
- Get the latest on the outlook for different sectors
- Identify business opportunities for your company
- Evaluate and improve your strategy for breaking into this market
- Hear from Quebec entrepreneurs who have succeeded in this market
WHY THE UNITED ARAB EMIRATES?
After over 40 years of diplomatic relations, Canada and the United Arab Emirates are working together to improve their economic prosperity, the result of the Shared Strategic Agenda process launched in April 2013.
The designation of the UAE as a priority market in Canada’s Global Markets Action Plan in November 2013 and the announcement of the official start of negotiations for the Foreign Investment Promotion and Protection Agreement in July testify to the growing interest of Canada and Quebec in this flourishing market.
This interest is well founded, given the many commercial benefits the Arab federation offers Quebec exporters, starting with its population’s strong purchasing power and free access to continental markets totalling 1.5 billion consumers through the Gulf Cooperation Council.
Already, almost 150 Quebec businesses actively export to the United Arab Emirates, at a time when the local government is investing massively in a wide range of infrastructure projects: roads, electricity production and transport systems, desalination plants, sewer systems, public housing, recreational facilities, hospitals and medical centres, schools, athletic facilities, refineries and other hydrocarbon processing facilities, airports and public buildings.
In 2010 alone, construction projects planned and underway totalled more than US$800 billion. Cultural products and services are also in strong demand, as they are essential to creating events in these new cities.
The UAE is a key market for Quebec exporters, who in recent years have made important breakthroughs in a range of sectors, such as clean energy, infrastructure, real estate, construction, electricity and information and communications technologies (Industry Canada).
Two complementary emirates, Abu Dhabi and Dubai, account for close to 90% of the GDP and respectively provide the production of hydrocarbons and the development of services and industry. Abu Dhabi invests mainly in heavy industry, high tech and renewable energy, whereas Dubai is trying to position itself as a global trade hub.
For Quebec exporters, the UAE Free Trade Zones (15% of trade in the country) offer total exemption from customs duties, the right to repatriate capital and profits, assistance recruiting labour and no tax for companies for 15 years, renewable for another 15 years, simplified procedures and regulations, security for people and property and an ultramodern infrastructure.
The United Arab Emirates is also:
- The second largest economy in the Middle East
- A stable economy and modern political regime
- A market of 8 million consumers
- In 2010, $206.7 million in exports for Quebec (18.2% of the total value of Canadian exports)
- Quebec’s second largest client in the Middle East, behind Saudi Arabia
- Ranked 23rd (out of 189 economies) for ease of doing business (the World Bank’s Doing Business, 2014)
- An estimated GDP of over$400 billion
- Among the highest per capita incomes in the world
- A member of OPEC, the United Nations, the World Trade Organization, the League of Arab States and the Gulf Cooperation Council
- 10% of the world’s proven crude oil reserves
- Growing tourism revenues
- The host of the 2020 World’s Fair
WHO SHOULD TAKE PART?
- Businesses in the following sectors will be particularly interested:
- The environment, energy and clean tech
- Infrastructure, real estate and construction
- Information and communications technologies
- Defence and security
- Design and architecture
- Machinery and equipment
- Oil and gas
- Life sciences
- Financial services
- Professional services
- Mines, precious and base stones and metals
The United Arab Emirates: an oasis to bank on!