Tax or no tax, UAE to remain investor magnet

Tax or no tax, UAE to remain investor magnet

DUBAI: Tax advantages paired with a life of luxury have long drawn foreigners and multinationals to the UAE, which is aiming to remain attractive whether or not it signs up to a global tax initiative. The Group of Seven wealthy powers this month endorsed an "unprecedented“ agreement on a global minimum corporate tax targeting major companies seen as not paying enough, especially tech giants.

The objective is a minimum tax of at least 15 percent. While the agreement is the first step in a long process before it can become a reality, caught in the crosshairs are tax havens that attract firms such as Amazon, Apple, Google and Facebook. The United Arab Emirates entered the world's top 10 tax havens for the first time in March, according to the Tax Justice Network.

Modestly called "jurisdictions with no or insignificant taxes“ by the Organization for Economic Co-operation and Development (OECD), the havens include the Bahamas, the British Virgin Islands, Guernsey, Jersey, the UAE and many others. Both the UAE capital Abu Dhabi and freewheeling Dubai, the biggest draw for investors out of the UAE's seven emirates, are home to thousands of companies that have set up regional offices there.

UAE officials have yet to