- NEWSLETTER, GLOBAL
- May 30, 2025
At a time when regulatory norms and stakeholder scrutiny are on the rise, ESG due diligence service has emerged as an essential requirement for establishing a sustainable business strategy.
Today, 79% of investors consider ESG performance a key investment criterion, and 49% may cease collaborating with companies that overlook ESG standards. The message is clear – powerful ESG oversight ensures credibility and capital access.
ESG is no longer a peripheral concern for MNCs and their supply chains. It’s a fundamental necessity for these organizations. For companies striving to scale responsibly, ESG due diligence is a critical framework for evaluating the ethical, environmental, and operational integrity of internal processes and third-party relationships.
Leading businesses seek ESG due diligence services from established partners to remain compliant.
The Business Case for ESG Integration
With effective ESG due diligence, businesses can proactively identify and manage risks related to:
- Environmental sustainability: Reducing emissions, minimizing pollution, and safeguarding biodiversity
- Social accountability: Promoting fair labor practices, human rights, and safe working environments
- Corporate governance: Ensuring transparency, ethical compliance, and legal adherence
Keeping Pace with Global Frameworks for Regulatory Alignment
As global jurisdictions tighten ESG compliance, businesses face mounting regulatory obligations. Over 30 countries have enacted legislation in line with the EU Corporate Sustainability Due Diligence Directive (CSDDD). Some of these include:
- The Supply Chain Due Diligence Act of Germany
- The Modern Slavery Act of the UK
- Conduct comprehensive risk assessments across their supply chain
- Exercise control to prevent and mitigate violations of human rights and environmental norms
- Transparently document stakeholder communications, particularly in cases of adverse impact
Risk Mitigation for Consistent Operations
Amid rising competition, neglecting ESG can be dangerous. Business consequences can be far-reaching in case of non-compliance, from disrupted supply chains to penalties and reputational damage to investor back-outs. The financial impacts of ESG failures are significant, often resulting in legal issues and the erosion of brand value over time.
Businesses, therefore, need proactive ESG due diligence services to maintain a resilient supply chain and comply with regulations.
How Does ESG Due Diligence Deliver Market Advantage through Competitive Differentiation?
- Secure preferential access to ESG-conscious investors and capital
- Build the trust of stakeholders and strengthen the long-term loyalty of stakeholders
- Stay ahead of emerging industry benchmarks and global disclosure norms
Professional ESG Due Diligence Service to Bridge the Compliance Gap
While brands recognize the value of due diligence, execution remains a challenge. Most organizations encounter roadblocks like over-dependence on outdated models for screening suppliers, inefficiencies in gathering and validating data, and a lack of dynamic monitoring tools for ongoing ESG performance.
Successful businesses partner with professional consultants like the IMC Group for comprehensive ESG due diligence services. These experienced advisors provide smart and tech-enabled due diligence solutions to help brands address challenges and remain compliant.
- NEWSLETTER,U.A.E
- May 23, 2025
Dubai and Abu Dhabi have raised the anchor on a bold new expansion of the Dubai Golden Visa program. The UAE now offers a 10-year residency program to yacht owners and professionals in various fields, including nurses, content creators, gaming professionals, and teachers.
This strategic move falls in line with the broader ambition of the UAE to establish itself as a global hub for innovation and investment, attracting high-net-worth individuals. With this initiative, the UAE strengthens its foothold in the luxury tourism and maritime industries.
How the Golden Visa Program of the UAE Can Benefit Foreign Investors
Originally launched in 2019, the UAE designed its Golden Visa program to provide long-term residency for foreign investors, entrepreneurs, and specialized professionals. Now, the authorities announced an expansion of the program in May 2025. The residency program has been extended to include a wider range of categories. Particularly, this includes luxury yacht owners, maritime executives, and other high-value talent like nurses, teachers, content creators, and gaming professionals.
Applicants enjoy a suite of attractive benefits for foreign investors. These include:
- No need for a local sponsor or employer
- Full family sponsorship with the same duration of residency
- No personal income tax, capital gains tax, or inheritance tax
- Ease of doing business, banking, and property ownership in the UAE
- The residency remains uninterrupted, even if the visa holder spends extended time outside the country
The UAE appears to be an incredible destination for those skilled talent looking to upgrade their lifestyles. Relocating to the UAE also brings in business growth and tax efficiency.
Now, let’s take a look at how the Golden Visa Program of the UAE can benefit foreign investors.
The Golden Quay and Superyacht Residency
Authorities have launched “The Golden Quay” in Abu Dhabi. This is a collaboration between the Abu Dhabi Investment Office (ADIO), the Department of Culture and Tourism (DCT), and Yas Marina. The initiative targets yacht owners whose vessels exceed 40 meters in length, along with key players in the same ecosystem.
Eligible individuals include:
- Owners of yachts measuring 40 meters or longer
- CEOs, major shareholders of yacht-building companies
- Central yacht agents, brokers, and service providers
- Yacht insurance and maintenance executives
- Immediate family members of the principal visa holder
The Golden Quay Visa
The Superyacht Golden Visa
Empowering Economic Diversification and Tourism
The new visa strategy in the UAE isn’t just about tourism. It is a calculated measure to fuel the growth of the marine economy of the country, which is currently valued at over $1.2 billion. At the same time, this initiative boosts high-end tourism, waterfront real estate, and marina infrastructure. At the same time, the country attracts UHNWIs with a taste for exclusivity.
The Golden Visa expansion is also part of the UAE’s Vision 2030. This initiative has been taken to attract 100,000 skilled professionals in the next five years to diversify the economy of the country beyond oil. Interestingly, the nation attracted 9.8 million visitors in 2024, and 15,000 startups are currently operating in Dubai. The government is aggressively carving out its identity as a knowledge-based economy that attracts global talent.
Golden Visa Now Available for Professionals from Other Fields
Apart from luxury yacht owners, five new categories of professionals have been added to the Dubai Golden Visa program.
- Nurses with 15+ years of service
- Educators, including school teachers and university staff
- Digital content creators, including podcasters and influencers
- E-sports and gaming professionals
- Luxury yacht owners and industry leaders
Smart Investors Must Apply for Dubai Golden Visa
Foreign investors or entrepreneurs considering a long-term residency in the UAE must apply for the Golden Visa program. Even skilled professionals from different fields and yacht owners can now benefit from the favourable tax environment and world-class infrastructure. Consult a professional like the IMC Group to apply for the Dubai Golden Visa and relocate to the UAE. This is an excellent opportunity for those ready to invest in the Middle East or upgrade their lifestyles.
- ARTICLE,SINGAPORE
- May 16, 2025
Singapore Shareholders: Key Guidelines for Businesses
Setting up a business in Singapore requires understanding different legal and regulatory issues, with shareholder obligations being one of the most crucial ones. Shareholders play an important role in the Company in terms of governance, rights, responsibilities, and structure.
A company shareholder is a member of the company that owns shares of the company after having purchased shares and invested in the capital of the company. Shareholders of a private limited company in Singapore have important roles and rights with the company.
The presence of shareholders in Singapore impacts entire business operations. Whether you are an investor or entrepreneur, it is important to understand the shareholder requirements for businesses in Singapore to ensure smooth management and better compliance.
Basic Shareholder Requirements for Businesses in Singapore
The proper structure in Singapore organizations impacts business operations, ensuring growth. The shareholder requirements in Singapore are flexible, providing a suitable approach for SMEs and startups.
Singapore’s regulatory framework is highly conducive to international business, allowing for 100% foreign ownership of companies. Additionally, it offers the flexibility to issue shares in any currency, which facilitates seamless regional and global expansion. The financial barrier to entry is remarkably low, with a minimum share capital requirement of just S$1, enabling entrepreneurs to commence operations with minimal initial investment.
Shareholding Structures Across Various Business Entities in Singapore
Three primary business entities in Singapore follow a proper shareholding structure. Below are the key structures that one should be following:
Private Companies
Public Companies
Unlimited Companies
Shareholders Rights and Duties
Shareholder Rights
- Voting Rights
- This is in terms of electing directors during a general meeting and approving directors’ fees.
- Profit-Sharing Rights
- This indicates dividends, as they are subject to the company’s Constitution.
- Liquidation Rights
- This is regarding the distribution of assets (after paying creditors).
- Fair Treatment
- This is a legal requirement.
- Communication
- This is in relation to communicating with members of the board or directors, through the medium of calls or meetings.
Shareholder Duties
- Participate in general meetings and Annual General meetings
- Proper Transfer of Shares
- Support for Business Growth Payment for Shares
- Payment for Shares
- Accurate Ownership Records.
It is very important for businesses to comply with the roles and legal obligations of shareholders in Singapore private limited companies.
Maintaining the Shareholder Register for Singapore Private Limited Company
Conclusion
- Article, Global
- May 16, 2025
Due diligence, an integral and critical process in mergers, acquisitions, partnerships, or investments, plays a vital role in determining the success or failure of various business ventures. This thorough investigation thoroughly evaluates financial records, legal obligations, market conditions, and potential risks associated with any transaction. Despite its paramount importance, the due diligence process is often plagued by numerous pain points such as inefficiencies in data collection, overlooked details that could have significant implications, and inadequate risk assessments that fail to identify critical vulnerabilities.
This article delves into the different types and facets of due diligence, highlighting the intricacies involved in report creation necessary for robust decision-making, the development of checklists that streamline the evaluation process, and the transformative role of artificial intelligence (AI) which is revolutionizing how due diligence is conducted by enhancing accuracy and efficiency.
Types of Due Diligence
- Financial Due Diligence: Analyzing financial statements, tax compliance, and future financial stability.
- Legal Due Diligence: Examining legal compliance, contracts, litigation history, and intellectual property rights.
- Operational Due Diligence: Reviewing business operations, supply chain reliability, and infrastructure.
- Commercial Due Diligence: Market validation, competitive analysis, and customer dependency assessments.
- Human Resources Due Diligence: Evaluating employee contracts, compensation, and labour relations.
- IT and Cybersecurity Due Diligence: Ensuring robust cybersecurity measures and adequate technology infrastructures.
- Environmental Due Diligence: Assessing compliance with environmental regulations and potential environmental risks.
The Frequent Challenges in Due Diligence
- Information Overload: One of the most significant challenges is managing vast amounts of information from financial statements, contracts, operational reports, and compliance records. Overwhelming documentation often leads to oversight and incomplete assessments.
- Inefficient Processes: Traditional due diligence is notoriously time-consuming and resource-intensive; manual data collection and analysis cause significant delays.
- Risk Mismanagement: Businesses often fail to identify all potential risks, leading to costly oversights. Risks related to compliance, financial stability, cybersecurity, and human resources usually go unnoticed due to insufficient analysis.
- Poor Documentation: Inconsistent or incomplete documentation during due diligence can create legal and operational vulnerabilities post-acquisition or merger.
Tackling Particular Challenges in Due Diligence
How to Verify a Company Before an Acquisition
Legal Due Diligence Checklist for Investors
Due Diligence Services for Startup Investment
Vendor Due Diligence Before Onboarding
Third-party Risk Assessment Services
Compliance-focused Due Diligence Services
How to Perform Due Diligence to Avoid Fraud
What Startups Need to Know About Investor Due Diligence
Due Diligence Reports: The Foundation of Risk Management
Due diligence reports provide a structured insight into a company’s condition, delivering essential information for making informed decisions. Effective reports should encompass:
- Executive Summaries: Key insights into significant findings and risk factors.
- Financial Analysis: In-depth evaluations of financial statements, profitability, and overall stability.
- Legal Assessments: Review contracts, compliance matters, intellectual property, and legal disputes.
- Operational Reviews: Evaluation of production capabilities, technology systems, and supply chain vulnerabilities.
- Human Resources: Insights into employment contracts, compensation frameworks, and labour conflicts.
Clear, detailed, and organised reports mitigate the risks of miscommunication and incomplete evaluations.
Developing Due Diligence Checklists: Your Blueprint for Success
- Financial Documents: Audited financial statements, tax filings, budgets, forecasts.
- Corporate Records: Incorporation documents, ownership structures, board minutes.
- Operational Data: Product/service lines, vendor agreements, customer dependencies.
- Legal Compliance: Contracts, licenses, litigation records.
- HR Records: Employment contracts, benefit schemes, and regulatory compliance.
- Technology Infrastructure: IT systems, cybersecurity audits, data privacy policies.
- Environmental Compliance: Sustainability initiatives, environmental audit reports.
Understanding AI's Influence on Due Diligence
Artificial Intelligence is transforming due diligence by tackling traditional challenges and improving the process’s accuracy, speed, and thoroughness.
AI-Powered Analysis: AI tools can quickly process and analyze large datasets, identifying risks and anomalies with precision that surpasses human capabilities. This allows for the swift and effective identification of potential hazards—financial discrepancies, legal concerns, and cybersecurity threats.
Enhanced Accuracy: By automating routine data collection and analysis, AI significantly minimises human errors, ensuring consistent accuracy while allowing human resources to concentrate on strategic insights.
Efficiency and Cost Reduction: Automating due diligence condenses the timeline from months to days or even hours, leading to substantial cost savings and increased business agility.
Advanced Risk Prediction: AI algorithms can foresee future risks by examining historical data patterns, market trends, and operational weaknesses, offering critical predictive insights.
Real-Time Due Diligence: AI enables continuous due diligence by persistently monitoring and assessing company performance and risk exposure, facilitating proactive management.
Conclusion
- NEWSLETTER,U.A.E
- May 9, 2025
With the new corporate tax regime in the UAE now in force, startups and SMEs are facing mounting operational and compliance challenges. The lack of expertise in handling tax and limited internal resources are among the key hurdles small businesses encounter. Conflicting financial priorities make it even more difficult for firms to remain compliant and resilient. In this scenario, a significant number of companies are seeking professional accounting and bookkeeping services in Dubai from established consultants.
As the government now levies a 9% tax on corporate profits, businesses must record every transaction accurately to maintain compliance. Without accurate tax filing, companies are exposed to penalties and legal consequences.
In this edition, we have outlined how SMEs and startups can ensure compliance with the corporate tax norms in the UAE.
Structured Compliance to Build the Foundation
Establishing a structured accounting framework defines the first step to comply with corporate tax norms in the UAE. Businesses need to file CT returns, which maintain financial records. Organizations must secure the Tax Registration Number (TRN), calculate the taxable income accurately, and submit returns through the EmaraTax portal within the stipulated deadline.
However, many firms fail to maintain accuracy, resulting in mistakes during corporate tax filing. Frequent errors include:
- Missing out on registration deadlines
- Misclassifying income or expenses
- Failing to document related-party transactions adequately
Tax Planning Throughout the Year
Choosing the Appropriate Tax Year
For businesses, it’s imperative to choose an appropriate tax year. Organizations must align the end of their financial years to the FTA deadlines to mitigate compliance risks. During FTA registration, businesses must document their tax period selection based on their Articles of Association or board resolutions.
Additionally, natural persons must use the calendar year. Any changes in period, particularly in the case of groupings or foreign tax credit claims, must be approved by the FTA and it must be supported by commercial justification.
Staying Updated on Evolving Rules
As tax policies continue to evolve, it’s crucial to stay updated with the latest norms. By 2025, businesses will need to assess whether they qualify as a Qualifying Free Zone Person or are eligible for small business relief. Organizations must verify qualifying activities and apply the correct methods for recognizing revenue. This approach can help companies optimize their tax positioning and ensure proper expense deductions.
Firms seeking professional accounting and bookkeeping services in Dubai from experts are better poised to remain compliant.
International Agreements and Transfer Pricing
The Double Taxation Avoidance Agreements (DTAAs) in the UAE significantly help businesses involved in cross-border operations. They are necessary to avoid double taxation and improve competitiveness. However, accurate documentation is necessary to maximize these benefits.
Meanwhile, companies engaging in related-party transactions must comply with Transfer Pricing guidelines in the OECD.
- Companies with revenues exceeding Dh200 million, or those that are part of MNCs with global turnover exceeding Dh3.15 billion, must maintain Master and Local Files.
- These companies also need to disclose their revenue if related-party transactions exceed Dh40 million total or Dh4 million per category.
The files must include the following:
- Agreements
- Functional analyses
- Benchmarking
- Demonstrate economic substance
Managing Liquidity for Tax Payments
Professional Corporate Tax Advisory Services in Dubai
It’s crucial for businesses in the UAE to perceive tax compliance as a strategic pillar for growth, not just a regulatory obligation. Non-compliance poses a significant financial risk and can jeopardize any business.
As small businesses and startups consider tax compliance as a core business strategy, they are seeking corporate tax advisory in Dubai from experienced professionals at the IMC Group. Treating tax compliance as a core business strategy can help organizations establish their resilience in the competitive environment.
- NEWSLETTER,U.A.E
- May 9, 2025
The Gulf region has long been associated with oil resources and generational wealth. However, a new transformation is redefining the economy of the UAE, where family offices are evolving from private wealth managers to powerful decision-making entities. This is a remarkable trend that has been shaping global investments and strategies.
Recent decades have witnessed the establishment of high-rise financial zones like DIFC and ADGM in Dubai and Abu Dhabi. Today’s family offices in the UAE are no longer confined to managing trusts or family fortunes in the background. Wealthy families and HNIs are turning to single family office in Dubai to preserve generational wealth and build resilient finance management strategies for the long run.
How the UAE evolved as a Centre of Wealth
Financially, the UAE has tremendously transformed over the years, and the answer lies in more than its glamorous real estate industry or attractive tax incentives. Financial transparency, legal maturity, and global accessibility are some of the factors that make the country a preferred destination for the wealthiest families of the world.
Let’s have a look at these numbers to get a comprehensive overview:
- The DIFC, in 2024, reported a 25% spike in licensed
- Currently, the UAE has more than 6.900 active entities
- Many of these wealth management firms cater to ultra-high-net-worth families
- ADGM recorded a massive 245% growth in its total AUM
All these numbers further cement the reputation of ADGM as a trusted financial hub.
By 2025, Middle Eastern family offices are projected to manage over $500 billion in assets—putting them on par with major institutional investors.
Moreover, laws like the DIFC Family Arrangements framework and the UAE Family Business Law allow wealthy families to plan for governance, succession, and risk management with clarity and confidence.
The Broader Mission of Modern Family Offices
Family offices in the UAE, too, have transformed over the decade. Today’s family offices operate more like a combination of private investment firms, strategic advisory bodies, and legacy builders. These family offices are responsible for overseeing vast portfolios diversified globally. They invest in different avenues, from Silicon Valley startups to European real estate.
Modern family offices coordinate succession plans that bridge generational and cultural divides. These professionals shape philanthropic initiatives that reflect changing values of families.
As their scope of operation expands, family offices, too, need competent leadership. These organizations need leaders who can wear multiple hats and manage moth financial complexity and family values with their skills.
The Key to Success For Family Offices
Efficient leadership is the key to success for family offices.
- Leadership is more critical than legal or financial structures in the success of a family office
- CEOs must balance the intentions of founders with the evolving goals of the next-generation heirs
- CIOs need to generate returns while respecting the legacy and values of families
- Legal heads need expertise in complex, multi-jurisdictional regulations like ADGM and DIFC
- Ideal leaders are generalist specialists skilled in finance, governance, and relationships
- Family offices in the UAE are shifting to second or third generation of leadership, which requires new styles
- Effective leaders can efficiently bridge generational gaps, preserving both wealth and emotional unity
Choose The Strategic Partner to Grow Family Offices
As the role of family offices in the UAE evolves, finding the right leadership is no longer about filling roles, but shaping legacies. As family offices grow in ambition and complexity, having the right professionals on board has become far more crucial.
Established consultants like the IMC Group provide professional advisory services to help Single family office in Dubai. These experts approach leadership with a long-term strategic partnership to keep family offices competitive.
- NEWSLETTER,U.A.E
- May 9, 2025
As Dubai consolidates its position as a global financial hub, advanced technologies like artificial intelligence are significantly shaping innovations in the city. AI firmly stands at the centre of this transformation, spearheading growth as global firms eye a growth trajectory in the Middle East.
The Dubai International Financial Centre (DIFC) has been pushing this innovation further ahead, integrating it with the financial ecosystem in the region. Growing firms in the UAE are increasingly seeking AI consulting services from established teams to stay ahead of the curve.
The Integration of AI in DIFC Operations
Speaking at the Dubai AI Festival, the Governor of DIFC revealed that AI is currently being used in 26 categories of service requests within the centre. It accounts for nearly 15% of all interactions between businesses and tenants.
This trend is not just about digitization, but the institutionalization of AI across core service delivery systems.
The Dubai AI Campus, a hub for innovation in the DIFC, also supports this trend. Interestingly, the Campus has attracted more than 180 AI-driven startups in the last one year. It has been shouldering a crucial responsibility in accelerating AI-oriented growth in the economy.
A Global Business Hub with a Digital Advantage
The appeal of the DIFC extends beyond infrastructure. It is home to a professional community of over 44,000 and offers a tax-free environment. The DIFC also conducts business in English and is consolidated by a stable currency based on dollars. All these elements make the international environment for businesses highly competitive in the Middle East.
The financial implications of this transformation are significant. In 2023, the AI sector in Dubai was valued at $3.5 billion, and is projected to reach $46 billion by 2030. It marks a tremendous annual growth rate of 44%. This figure marks the rise of intelligent systems that have been:
- Reshaping operations
- Enhancing risk analysis
- Improving customer service
- Improving operational efficiency
Key Factors Driving Policies Behind the Growth of AI
The AI-oriented vision of Dubai is not solely about expanding its economy. Structural requirements are a crucial factor in this growth trajectory. A large proportion of the Emirati workforce remains concentrated in public sector roles. This employment model has been flagged as unsustainable by the International Monetary Fund (IMF) considering that the demand for oil might decline in the long term as the world switches to renewable energy. Therefore, the adoption of AI serves both a financial and a strategic goal.
Interestingly, in Dubai, both digitization and longstanding traditions find a balanced coexistence. For instance, paper cheques remain common for rental and leasing transactions. Cash continues to dominate the famous gold souk of the city. However, gradual changes are under the way, with top real estate developers now accepting Bitcoin.
Seek AI Consulting Services From Professional Advisors
- NEWSLETTER, U.A.E, SINGAPORE
- May 8, 2025
A Strategic Agreement with Global Intent
Signed under the patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, the agreement grants THi a lease of more than 300,000 square meters of land in the Al Hamra region. This space will be developed into a sophisticated industrial park. The goal is to attract:
- High-tech enterprises
- Smart manufacturing ventures
- Firms from East Asia known for their innovation
This development marks a pivotal step in the long-term economic vision of Ras Al Khaimah. It further strengthens its integration into global supply chains while reinforcing its reputation as a strategic investment destination.
Businesses are partnering with top consultants for their company formation in Singapore, which can open a channel to benefit from the ongoing developments.
Real Estate Developers in Asia Back the Deal
THi will collaborate with SC Capital Partners, an investment management firm headquartered in Singapore to develop this industrial park. SC Capital Partners is known to have deep expertise in real assets.
Let’s have a look at some interesting facts:
- CapitaLand Investment, which owns a 40% stake in SC Capital Partners, adds substantial global weight to the initiative
- With an AUM of more than $100 billion, CapitaLand’s involvement further demonstrates strong institutional confidence in the UAE market
- This coalition brings a powerful combination of capital, capability, and vision to the emirate.
Infrastructure Development and Job Creation
The development of infrastructure is likely to generate substantial economic outcomes for Ras Al Khaimah and the wider UAE.
- Over multiple sectors, over 1,800 new jobs are expected in the coming years
- More than 50 tenants are anticipated within the industrial park
- Core industries include electric vehicles, renewable energy, and advanced materials
Diplomatic and Executive Support Reflects Strategic Value
Prominent stakeholders were present at the signing ceremony, including
- Ramy Jallad, CEO of RAKEZ
- Frank Wu, Founder and Chairman of THi
- H.E. Mohammad Al Hawi, UAE Ministry of Investment
- Senior executives from CapitaLand and SC Capital Partners
Professional Consultation for Company Formation in Singapore
- NEWSLETTER, U.A.E, INDIA
- May 8, 2025
The Comprehensive Economic Partnership Agreement signed between the UAE and India has officially completed three years. Signed in February 2022, the agreement has evolved into a significant economic framework that drives regional integration and growth in crucial sectors.
As the agreement completes its third year, it stands as a model of diplomacy and mutual ambition, encouraging the flow of investments. The CEPA has reshaped value chain strategies across the Gulf and South Asia across over the last three years.
Currently, organizations from India are seeking expert consultations for company formation in Dubai to capitalize on the favourable business environment.
Economic Alliance between the UAE and India Keeps Depending
After the CEPA came into existence, commercial activities between the UAE and India have picked up pace. Businesses have significantly benefited from liberalized tariffs and streamlined procedures. As per the GJEPC (Gem and Jewellery Export Promotion Council), bilateral trade between these two countries witnessed a sharp rise from US$20.88 billion to US$28.15 billion between FY2022 and FY2024, growing at a rate of 35%. This remarkable surge was achieved mainly due to the removal of trade barriers.
The CEPA also promoted high-value trade, particularly in the gem and jewelry segment. In just two years, India’s gem and jewelry exports to the UAE rose from US$4.95 billion to US$8.04 billion, marking a 60% increase. Currently, the UAE commands nearly a quarter of the overall exports from India in this category, surpassing Hong Kong as the second-largest destination market.
Companies in India are actively seeking professional solutions from business set up consultants in UAE to establish their presence in the country.
Growth in Jewelry and Precious Metals
Thanks to the CEPA, the jewelry and precious metal sector in India has witnessed significant growth. The trade agreement has granted Indian exporters duty-free access to the UAE market.
- Exports of plain gold witnessed over 2X growth, reaching US$4.24 billion in FY2024 at a rate of 127.6%.
- Exports of studded gold jewelry and lab-grown diamonds also showed upward trends.
- Exports of platinum jewelry soared by more than 820% from India.
Streamlining Imports and Investment Strategies
The CEPA has introduced the Tariff Rate Quota mechanism, which streamlines India’s gold imports. The TRQ allows gold from the UAE to be imported at a concessional duty of just 1% in India. In recent years, gold imports by India from the UAE witnessed a 126.8% surge.
This evolving trade environment presents long-term opportunities for investors in the UAE to participate in the expanding jewelry sector in India. Investments in Indian jewelry parks, refining facilities, and mega common facility centers (CFCs) are gaining momentum under the Make in India scheme. As a result, a mutually beneficial investment loop is taking shape between the two countries. Naturally, a larger number of Indian organizations are looking for company formation in Dubai to benefit from the tremendous opportunities.
Reach out to the Business Set Up Consultants in UAE
As CEPA progresses to its next phase, the potential for bilateral trade between the UAE and India is projected to cross $30 billion in the next five years. Interestingly, CEPA is also empowering micro, small, and medium enterprises (MSMEs), integrating them into the global supply chain. As a result, more jobs are being created, supporting industrial diversification in key manufacturing sectors.
As the trade environment looks favorable, it’s time for companies to seek professional support from established business set up consultants in UAE like the IMC Group. With a dedicated assistance from experienced advisors, organizations can grow their presence in the UAE with confidence.
- Newsletter, U.A.E.
- May 8, 2025
The UAE Ministry of Finance has introduced crucial changes that can affect tax groups and Free Zone businesses. The authorities have amended its guidance under the Corporate Tax Law, Federal Decree-Law No. 47 of 2022. The regulation now requires all tax groups to prepare audited special purpose aggregated financial statements. This is a significant step that will align financial reporting standards in the UAE with international compliance benchmarks.
Lawmakers in the UAE prioritize transparency and strive to reduce ambiguity as they introduce these amendments. Businesses must seek professional advisory services from an established corporate tax consultant in UAE to remain compliant.
Special Purpose Financial Statements Now Mandatory for Tax Groups
While the requirement applies to all tax groups as a whole, individual entities within the group are exempt from preparing audited stand-alone statements. This norm will significantly reduce operational burdens without compromising the integrity of consolidated reporting.
The goals of the UAE Ministry of Finance are clear, as they strive to ensure consistency in reporting and streamline tax obligations. With this approach, the UAE can uphold its reputation as a transparent and investor-friendly country. These special purpose statements will be a vital component of corporate tax assessments in the future.
New Guidance on Distribution Activities Expected for Free Zone Businesses
The updated set of norms also explains the tax implications of Qualifying Free Zone Persons. This applies particularly to those involved in distribution activities within or from Designated Zones. Interestingly, existing tax benefits under the Free Zone regime remain unchanged. However, businesses in this category must await further clarification regarding the procedures.
The FTA is likely to issue a detailed guidance that should help these entities comply with the new set of norms. This ensures that they can maintain their eligibility for the 0% Corporate Tax rate, where applicable.
For businesses dealing with logistics, supply chains, or trading in the Free Zones, this clarity is essential to develop strategy that ensures compliance.
Strategic Implications for Corporations Operating in the UAE
The new regulatory updates reflect the key priorities of the UAE. The country strives to ensure compliance and maintain a competitive edge in global commerce. Businesses, therefore, must consult reputed tax professionals to adhere to the best accounting practices. With expert support, companies operating in the free zone can comply with the eligibility criteria.
For corporate groups in the UAE and Free zone companies, this is the right time to seek expert advisory services. Professionals can offer a comprehensive solution, scrutinizing the financial consolidation process and helping businesses prepare for audits in the future.
Corporate Tax Consultation Services in UAE
Regulatory changes can be demanding for businesses prioritizing compliance. MNCs and Free Zone entities must react to these changes and stay ahead of them. An experienced corporate tax consultant in UAE, like the IMC Group, can help organizations with end-to-end support to ensure compliance. The professionals evaluate the structure of corporate groups and help these organizations align with the right financial reporting processes.
Free Zone businesses can also seek expert insights as they prepare for the clarifications likely to be issued by the FTA. With professional support, companies can maintain their tax efficiency under the evolving corporate tax framework in the UAE.
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