Experts see no letup in FDI flow to UAE despite corporate tax regime

Experts see no letup in FDI flow to UAE despite corporate tax regime

Investment pundits said UAE would continue to drive FDI capital into the region as investors prefer the emirate due to its business-friendly policies, excellent infrastructure, and structural changes aimed at diversifying the economy.

The UAE, which has recorded a 116 per cent growth in foreign direct investment over the past 10 years, will remain a key global hub for FDI regardless of the rollout of nine per cent corporate tax (CT) as it continues to retain its global competitiveness and attraction a business destination on the back of a series of investor-friendly reforms.

Fincasa Capital, a global financial services & Tax advisory firm, said on Wednesday that it sees no let-up in investments into the country despite the new taxation structure.

Varis Sayed, founder of Fincasa Capital, said CT would be a boon for the UAE economy in that it will provide the government with a new source of revenue and, in effect, help reduce its heavy reliance on oil receipts.

“We expect that the new tax regime will strengthen the confidence of investors in the national economy’s growth prospects, seeing the government’s willingness to implement changes vital to globalize the local business culture and making the country internationally pioneering.”

Investment pundits said UAE would