- Newsletter, Saudi Arabia
- November 9, 2021
The COVID pandemic has had a devastating impact on businesses, and economies all over the world and Saudi Arabia is no exception. In the construction sector, it has led to project cost escalation, supply chain disruption, and labour shortage. All the gulf nations witnessed a decline in their GDP growth.
However, as the gulf countries put their best foot forward towards sustainable long term development by diversifying economies into the non-oil sectors and bringing in social reforms, the construction sector in the gulf will begin to recover steadily and in all expectations, the post-covid construction sector growth will be led by the KSA with several foreign company formation in Saudi Arabia in real estate and construction space.
Amongst the GCC nations, Saudi Arabia currently holds the greatest potential for the construction sector with more than 5,000 capital projects worth well over USD 1.6 trillion in the pre-execution stage.
The construction sector is expected to expand by 2.9% in 2021 and as per forecast, would grow at an annual average growth rate of 4% during 2022-2025 on the back of the government’s housing development projects and infrastructure spending.
The country has a grand plan to rejuvenate the rail, airport, port and other logistics infrastructure including healthcare and tourism facilities.
On 29th October 2021, Saudi Arabia announced the capital city of Riyadh’s intention to bid for hosting the World Expo 2030 to the Bureau International des Expositions (BIE), World Expo organising body. A new airport for Riyadh for a cost of USD 147 billion has already been planned by the government.
Eight new cities have been planned along the Red Sea coast on the western side of the country and USD 575 billion has been budgeted for this project to build 100,000 hotel rooms, 1.3 million new homes and three million square meters of world-class office space.
A promising development plan has been laid out for Riyadh to solidify its status as the commercial centre of the Kingdom and USD 63 billion has been earmarked for creating more than 100,000 new homes expected to be completed by the end of 2023. There is also a plan to add 12,000 hotel rooms and around three million square meters of new office spaces.
Large-scale construction schemes called ‘giga-projects’ have been planned for promoting the country’s overall economy as part of Vision 2030. The most notable giga projects include NEOM Smart City, Six Flags Qiddiya Theme Park, Red Sea Resort Project and Amaala Red Sea Riviera.
Saudi Arabia’s Property Technology, PropTech market is expected to boost up with the roll-out of ‘giga projects’ like NEOM. Almost USD 2 million initial funding has been set aside for home maintenance services startups including FalconViz, Ajeer, Muqawiloon, B8ak.
The traditional ecosystem in the reality sector is all set to get disrupted and improved in property transactions, tendering and procurement due to smart technology adoption. The country plans to extensively use AI, robotics and 3D printing in the construction sector to improve productivity.
The Saudi government is actively working towards investing in green buildings and standardising the building rating system towards meeting sustainable development goals. A new standard called Mostadam Standard has been developed by the Ministry of Housing for rating buildings and launched in 2019 to validate the sustainability of constructions and avoid re-construction and CO2 emissions in future.
With giga-projects incorporating a mix of technology and sustainable development elements, the government is trying to build a better future for the younger generations and empower the country to build a new era driven by digital transformation and innovative technology. The real estate company called “Roshn” launched by Public Investment Fund specializes in integrated urban neighbourhood development incorporating the latest technologies in construction. The Sakani housing program also reaffirms the country’s commitment to development using smart tech.
Adopting Construction delivery Technology is instrumental in transforming the construction sector in the Kingdom. The government is already on a move towards the widespread introduction of prefabricated building techniques including those developed by the Ministry of Housing with 3D printing to reduce the construction time, standardise designs and operations, improve quality and productivity.
Exponential growth is on the cards in the transport and logistics sectors as the country recovers from the pandemic and restrictions ease. In July 2021, His Royal Highness Prince Mohammad bin Salman bin Abdulaziz Al-Saud proposed USD 147 billion capital infusion into the transport and logistics sectors over the next ten years. Once implemented, these sectors would contribute 10% of the country’s GDP by 2030, an increase over 4% from the current level.
An agreement has been signed between Maersk, a global integrator of container logistics and Saudi Ports Authority (Mawani) for an investment of USD 136 million over 25 years for an integrated logistics park set up at the Jeddah Islamic Port.
The huge infrastructure spending planned for reshaping the economy and future of the Kingdom will attract many foreign talents and institutions for doing business in Saudi Arabia.
- Newsletter, U.A.E
- November 9, 2021
[vc_row][vc_column][vc_column_text]”Rare Jumeirah Bay plot sells for almost double the price at AED 61 million” the August 2001 report from Luxhabitat Sotheby’s suggests that the high paced luxury property market in Dubai is on an exponentially upward trajectory. The city is witnessing an unprecedented rise in sales of high-end luxury real estate properties as the ultra-rich across the world set on a journey to find new homes in Dubai. Increasing demand is driving the prices higher for centrally located properties especially in the high-end luxury villas and apartment segments.
On the manmade marvel Palm, a Super-Penthouse, an epitome of luxury recently sold for AED 86 Million making it one the costliest penthouses ever sold in the metropolis. According to Alexander von Sayn-Wittgenstein, Managing Director of Luxhabitat Sotheby’s International Realty the penthouse prices would normally remain stable over time.
“The luxury segment is more stable than the mass market since supply here is limited and owners are wealthy and wouldn’t just sell for any given price,” he said.
[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1636460379636{background-color: #f7f7f7 !important;}”][vc_column][vc_column_text]Dubai’s real estate market is witnessing continuous growth and increased investment, reports Dubai Land Department (DLD). As per the 18th edition of Mo’asher, Dubai’s official sales price index, launched by DLD, August 2021 scored the second-highest rank since December 2013 and best August in the last twelve months in terms of the number of monthly sales transactions with 5,780 sales amounting to a staggering AED 14.97 billion.
The August 21 sales took the yearly volume to 37,537 sales transactions worth AED 88.12 billion. The value of real estate sales transactions also rose by 22.61% in just eight months compared to 2020 which had 35,401 sales worth AED 71.87 billion. While secondary ready market sales contributed to 55% of total transactions, primary market sales stood at 45% registering a growth of 5% on a month on month basis and witnessing the highest amount of money infusion in the last 11 years.
The Arabian Ranches 3, Dubai Land, Dubai South, Tilal al Ghaf and Damac Hills 2 were the areas where villa sales took place in August while Business Bay, Jumeirah Village Circle, Dubai Harbour, Mohammed bin Rashid City and Downtown Dubai were the main areas of attractions for apartments.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]In 2021, Dubai real estate sector witnessed the best Q3 in its history in sales transaction value and the best Q3 in sales volume since 2009. In comparison to Q32020, Q32021 showed an 85.36 % increase in sales transaction volume and an increase of 135.42 % in transaction value. Both the volume and value of sales transactions also rose considerably from that of precovid level and by 64.5 % and 138.8 % respectively.
Luxhabitat Sotheby’s, one of the famous global reality sector players, reported more than 8 million USD sales transactions by ultra-high net worth individuals since 2020. “The average value of the transaction has gone up in comparison to the last couple of years due to many UHNWIs moving to Dubai with a net worth of above $30 million,” Rohal Kohyar, Marketing Director at Luxhabitat Sotheby’s International Realty. Some big deals struck with clients who belong to Forbes’ billionaire list. As per Kohyar, a huge surge in demand helped them achieve an almost 300% jump in annual sales revenue.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1636460415460{background-color: #f7f7f7 !important;}”][vc_column][vc_column_text]Alluring sunshine, mesmerising skylines, attractive beaches, sprawling shopping malls, high-end dining facilities and a world-class healthcare system are some of Dubai’s tempting appeal to the growing number of millionaires moving to the emirate over the past several months. The ultra-rich retiring to Dubai are inspired and encouraged by the new visas, the handling of the pandemic and the quality of life.
The covid impact on traditional office work environments has also accelerated the trend in remote working from home further encouraging many international business persons to relocate their businesses to Dubai and take advantage of a relatively normal lifestyle. Dubai has scenic and mind-blowing beaches promising a sunny romantic waterfront lifestyle that attracts HNWIs from across Europe, Russia, and other cold countries to Dubai as their second home during cold winters.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Dubai has always remained friendly to foreign workers from across the world and only 10% of its population are UAE Nationals. This puts a global tag on Dubai and helps attract foreign nationals as tourists, businesses, and investment destinations.
Dubai is the gateway between the east and the west and due to its geographically central location, has made Dubai International Airport one of the busiest airports in the world. More than 15 million people visit this airport every year.
Around 2,000 high-net-worth individuals (HNWIs) relocated to Dubai from January to June 2021 and their population rose by 3.8% from 52,000 in December 2020, as reported by New World Wealth, a global wealth intelligence firm based in RSA and tracks the movements and spending habits of the world’s wealthiest people.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1636460426689{background-color: #f7f7f7 !important;}”][vc_column][vc_column_text]There has been an unprecedented rise in sales transactions in the luxury upscale residential space in Dubai surging 230% during Q12021, compared to Q12000. Prices have also increased in some top-end sought after locations and as much as 40%, highlighted Property Finder, the country’s largest real-estate website.
“Tons of people are coming in and buying multimillion-dollar properties on the spot, with no due diligence time whatsoever,” noted Matthew Cooke, a partner at consultancy Knight Frank, penthouse sales manager on man-made Palm Jumeirah artificial archipelago in Dubai.
Only a few prime locations are presently available in Dubai and high-end real estate developers are competing heavily for their future projects in the primary market. The secondary market doesn’t offer many options either as they are mostly owned by end-users. Presently a limited number of ultra-high-end real estate projects are on offer in the city and consequently carrying a hugely inflated price tag, 100% higher in some cases, on them. Effectively, the demand-supply gap is driving the luxury home prices higher in Dubai.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]As the ultra-high-end properties have seen the highest price surge during this year, it follows suit with the growing trend of UHNWI clients relocating to Dubai as their second home destination.
The residential prices in Dubai remained moderate over the last few years and have made the Dubai luxury real estate market amongst the most attractive and affordable in the region. The high-end residential property prices are still much lower compared to those in London, New York and Hong Kong. Being one of the safest cities in the world today, the luxury ultra-high-end real estate market in Dubai is expected to move further upwards in the coming days.[/vc_column_text][/vc_column][/vc_row]
- India, Newsletter, U.A.E
- November 9, 2021
Driven by common goals and philosophy for regional peace, economic growth & sustainability, India and Israel joined hands for a trilateral economic summit in Dubai on Tuesday, 19th October 2021. Business leaders from India, UAE and Israel could well visualize the potential of trilateral cooperation in many fields and projects and long cherished a collaborative approach to address the same. The economic summit was attended by more than 250 delegates, industry experts and Government Officials from the three countries.
The agenda of the summit was to discuss measures for assessing and optimising trilateral opportunities in trade and investment. The Economic Summit was a one-day forum and a joint effort of the Consulates of Israel and India in Dubai, the Israel Export Institute, the Indian Business and Professional Council (IBPC), Bank Hapoalim, Bank of Baroda and media partner Khaleej Times. Bank of Baroda and IBPC Dubai also sponsored the summit.
The summit witnessed several panellists and experts highlight prospects of joint projects in various fields. After the general discussion session, the sectoral panel discussions were held in the fields of technology, agritech, infrastructure, clean energy, food technology, water technology, tourism & smart cities, technology collaboration including harnessing the potential of the medical and health care sector.
The brainstorming and discussion sessions centred around the possible joint projects and assessing mutual benefits. India was represented by the three young unicorn panellists Nikhil Kamath of Zerodha, Nishant Pitti and Prashant Pitti of Ease My Trip and Sujeet Kumar of Udaan.
Abraham Peace Accords and recent government policy reforms in UAE and India made the delegates strongly believe in the trilateral synergy and an economic force to reckon with. All of them actively participated in the economic summit and Indian companies were invited to visit Israel for exploring collaborative opportunities in various sectors.
The Consul-General of India to Dubai, Dr Aman Puri termed this event as a ‘force multiplier’ and said, “The Indian business community in the UAE could significantly leverage the strengths of this trilateral to boost the economic growth of all nations.” He also mentioned this event as an ideal platform for the three countries to explore areas of collaboration and partnership in both private and public enterprises.
“This trilateral economic summit is taking place at an opportune time with the first anniversary of the signing of the Abraham Accords having been commemorated recently. I would like to congratulate both the UAE and Israel on their outstanding efforts in fostering regional peace and trust. The Abraham Accords was a landmark event that has not only had a significant impact on trade interest between the UAE and Israel but also helped to promote regional peace and prosperity. I commend the vision and commitment of the UAE and Israel leaders as well as the people of the two countries in forging such a historic, multilateral alliance that will have a significant positive impact on all nations,” Dr Puri remarked.
Dr Puri emphasized that India being the third-largest start-up ecosystem could bring tremendous growth opportunities from a company formation in India. He identified Israel as a powerhouse of research & development including startups and appreciated UAE for its relentless support for SMEs and startups and numerous incentives for new company formation in Dubai.
Ilan Sztulman, Consul General of Israel to Dubai also highlighted the opportunities of this trilateral summit for mutual collaboration and doing business together. He noted saying, “This forum is symbolic as it comes immediately after the signing of the important economic cooperation agreement between Israel, the United States, the United Arab Emirates and India on shared issues of concern in the region and globally.”
All the three countries, Israel, India and the UAE are tech-centric and have a deep interest in technology and once together can be an innovative force, the Chairman of IBPC commented.
The President, Manufacturers Association of Israel and CEO, Unipharm Ltd. Dr Ron Tomer noted that these three nations are complementary to each other and can make a win-win situation for everyone. He also informed that Israel’s FTA with India was in progress and the same with UAE was under discussion.
Chairman, KEF Holdings Faizal Kottikollon shared his thoughts on the major healthcare and education projects currently undergoing in India where a collaborative approach can benefit all three countries.
Many eminent personalities from the business and industrial arena took part in the event such as Adiv Baruch, Chairman of the Israel Export Institute; Ahmad Sultan Al Haddad, COO, JAFZA; Professor Leonardo Leiderman, Chief Economic Advisor, Bank Hapoalim and Professor of Economics and Business, Tel Aviv University; and many more.
The combined strengths of India, Israel and the UAE can propel the trilateral trade between the countries to a high of USD 110 billion by 2030, many top diplomats and industry experts have commented.
The comments came up during an event organised by the International Federation of Indo-Israel Chambers of Commerce (IFIICC) to discuss the ongoing business collaborations being facilitated by IFIICC across various sectors.
“The international business potential backed by Israeli innovation, UAE’s visionary leadership and strategic partnership of both nations with India could be USD 110 billion by 2030,” Head of the Israeli mission in Dubai, Consul General Ilan Sztulman said in a press release issued by IFIICC.
As India has a very constructive partnership with the UAE and also enjoys an equally wonderful relationship with Israel, post-Abraham Peace Accord between Israel and UAE can be the most opportune period to bring everything together for the economic good of the citizens of the three counties and open floodgates of opportunities for new business setup in the region.
- Newsletter
- November 2, 2021
On 8 October 2021, the Organization for Economic Cooperation and Development (OECD) / G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) released a statement on the two-pillar solution which states the agreement of 136 out of 140 Inclusive Framework members on core design features developed in the BEPS 2.0 project. The decision has received support from major economies including the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar, Bahrain and Oman.
The announcement reflects the progress made by the OECD on the two pillar solution to overcome the tax challenges arising from the digitalization of the economy.
IMC Group has deeply analysed the statement and has summarised the new components agreed by the IF members for Pillar One and Pillar Two. Our alert also summarises the implementation plan for the same.
Agreed Components of Pillar One
The October statement is a build on the July statement that focuses on the conceptual agreement on fundamental reforms to international tax rules. Furthermore, it provides clarity on certain key parameters. IF further provided clarification in regard to Amount A and confirmed completion of technical work for the application of Amount B by the end of 2022. The new agreed components are as follows:
Amount A
- Scope: The scope of Amount A is restated without any change. It states that Multinational Enterprises (MNEs) with global turnover above EUR 20 billion and profitability above 10% are within the scope of Pillar One rules. The calculation of turnover and profitability shall be done using an averaging mechanism.
- Allocation: October statement amended the previously defined residual profit allocation from 20% and 30% range to 25%. This means MNEs will now reallocate 25% of their residual profit (profit in excess of 10% of revenue) to market jurisdictions.
- Tax certainty: A mandatory and binding dispute resolution mechanism will be in place for all issues pertaining to Amount A. For a few developing countries, an electivebinding dispute resolution mechanism will be in place. The eligibility conditions to access this mechanism will be reviewed on a regular basis.
- Unilateral measures: The multilateral convention (MLC) through which Amount A is to be implemented requires the removal of all Digital Services Taxes and other relevant similar measures to all companies. Furthermore, no new measures are to be imposed on any company from 8 October 2021 until 31 December 2023 or the coming into force of the MLC.
Amount B
The statement clarifies that the application of the arm’s length principle to in-country baseline marketing and distribution activities will be simplified and streamlined. There will be a specific focus on the needs of low-capacity countries. The said work shall be completed by the end of 2022.
Agreed Components of Pillar Two
Pillar Two consists of two interlocking domestic rules, an income inclusion rule and an undertaxed payment rule as well as a treaty-based rule for the benefit of developing countries. The new components in pillar Two are as follows:
- Rate: The Inclusive Framework has agreed that a global minimum tax rate shall be 15% calculated on a country by country basis. The phrase “at least” has been removed from the statement.
- Scope: The rules will apply to MNEs that meet the EUR 750 million thresholds.
- Undertaxed Payment Rule (UTPR) exclusion: MNEs that have a maximum of EUR 50 million tangible assets abroad and operate in less than 5 other jurisdictions are excluded for a period of 5 years from the application of the UTPR.
- Effective Tax Rate (ETR) calculation: The earlier provided timeframe of 3 to 4 years has now been revised to 4 years for existing distribution tax systems earnings. The ETR calculation however remains unchanged.
Substantial activity exclusion: Certain incomes earned by MNEs are excluded from the computation of the ETR. The same is calculated at 5% based on a percentage of its tangible assets and payroll expenses. The term “at least” has been removed. The conditions for exclusion are as follows:
– The transitional period has been increased to 10 years.
– Exclusion amount is 8% of the carrying value of tangible assets and 10% of payroll. The same will be reduced annually.
De minimis exclusion: Furthermore, if MNE has revenue less than EUR 10 million and has profits less than EUR 1 million, a de minimis exclusion will also be applicable.
- Subject to tax rule (STTR): The STTR has been fixed at 9% from the previously mentioned range between 7.5% and 9%.
Implementation Plan for Pillar Two
The statement also highlighted the implementation plan for pillar two which is as follows:
- Pillar Two is anticipated to be brought into law in 2022 and will be made effective in 2023, with the UTPR coming into effect in 2024.
- Model rules to give effect to the GloBE rules will be developed by the end of November 2021. It will define the scope and set out the mechanics of the GloBE rules.
- Model tax treaty provision for the STTR and commentaries will be made effective by the end of November 2021. A multilateral instrument will be developed by the IF by mid-2022 to facilitate the smooth implementation of the STTR in relevant bilateral treaties.
- A detailed implementation framework will be developed by OECD by the end of 2022 to facilitate coordinated implementation of the GloBE rules.
End Note
With the new statement coming into effect, the tax and finance teams need to stay abreast with the changes in the existing tax landscape. They need to access the potential challenges the businesses are likely to face.
How Can IMC Group Help?
IMC Group is keeping a tap of all the changes that are happening from time to time. We can help you prepare an effective roadmap to sail through these changes.
Our international tax team can also assist you in determining the applicability and potential impact of Pillar One and Pillar Two on your business and how to go about its implementation.
For further information, get in touch with us now!
- Newsletter, U.A.E
- October 26, 2021
Economic Substance Regulation has been issued in the UAE since April 2019. Since its introduction, there have been various updates and amendments to the rule.
IMC Group has deeply studied and analysed the upcoming Economic Substance Regulation in order to guide businesses through the ESR filing obligations and help them prepare for the same.
Applicability of Economic Substance Regulation
The Economic Substance Regulations broadly apply to all United Arab Emirates onshore as well as free zone legal entities that carry out one or more of the 9 ESR “Relevant Activities” referred to as “licensees”.
The “Relevant Activities” are as follows:
- Banking
- Distribution and service centre
- Fund management
- Headquarters
- Holding company
- Insurance
- Intellectual property
- Finance and leasing
- Shipping
ESR Filing Requirements
The entities that fall within the scope of the regulations are required to submit a notification form and an Economic Substance Report to the respective regulatory authority.
The annual filing obligations for such entities are as follows:
- Notification
A notification must be filed within 6 months from the end of the financial year declaring that the entity undertakes Relevant Activity, even if no income was earned from such activity during the financial year; and
- Report
In case of income earned from Relevant Activity, a report must be filed within 12 months from the end of the financial year declaring certain business information demonstrating economic substance. The information includes income figures, expenses, assets, number of employees, etc.
Note:
An entity is not required to file the report for any financial period in which it has not earned income from a relevant activity or if it meets the conditions for being exempt. However, a notification must be filled regardless.
Exemption from the Regulation
The following entities are specifically exempted from the regulations:
- Investment funds
- UAE branches of a foreign entity provided the branch’s income is taxed in a foreign jurisdiction
- Tax resident entities in a foreign jurisdiction
- Wholly-owned entities by UAE residents or nationals that are not part of a multinational group, if they carry on business in the UAE.
Reporting Deadlines
Below are the reporting deadlines for a selection of financial year ends:
Fiscal Year End | Notification Filing Deadline | Report Filing Deadline |
31 Dec 2020 | 30 Jun 2021 | 31 Dec 2021 |
31 Mar 2021 | 30 Sept 2021 | 31 Mar 2022 |
30 Jun 2021 | 31 Dec 2021 | 30 Jun 2022 |
30 Sept 2021 | 31 Mar 2022 | 30 Sept 2022 |
31 Dec 2021 | 30 Jun 2022 | 31 Dec 2022 |
Key Actions
On the completion of a given financial year, entities are required to determine their upcoming ESR filing obligations and take the necessary steps to ensure timely filing along with submitting the supporting documentation.
Penalty for Non-Compliance
In case of non-compliance, entities will have to bear wide-ranging and significant penalties which are as follows:
- AED 20,000 – For failure to submit a notification
- AED 50,000 – For failure to submit an Economic Substance report
- AED 50,000 – For failure to provide accurate or complete information
- AED 50,000 (first failure) and AED 400,000 (second failure) – For failure to demonstrate sufficient economic substance in the UAE
Key ESR Considerations
Before the end of the financial year, all UAE entities must consider the following ESR matters and ensure timely action, where relevant.
- Assess whether the entity has conducted any Relevant Activity during the period and has generated income from the same. This is a crucial assessment as it determines its specific UAE ESR compliance requirements for that financial year.
- Entities that are earning income from any Relevant Activity during the period need to review their compliance with the applicable ESR tests (Directed and Managed, Core Income Generating and Adequate).
- Post review, entities should address the potential areas of non-compliance, if any.
- In case where the entity’s ability to comply with the regulations got impacted due to COVID-19, it should look for temporary measures such as appointing alternate directors in the UAE to attend local meetings.
- Entities should ensure control and supervision over any outsourcing arrangements. This can be done by way of entering into contractual agreements or correspondence.
The above-mentioned guideline provides an opportunity for the entities to take the necessary actions to comply with the ESR within the stipulated timelines.
How can IMC Group help?
IMC Group can help you navigate through the Economic Substance Regulation and guidelines based on your jurisdiction. You may book a consultation with our expert to know how the new update will affect you and the way forward.
- Newsletter, U.A.E
- October 19, 2021
At Intuit Management Consultancy, we are a leading cross-border advisory firm that caters to large companies, multinational corporations, small and medium-sized enterprises, high net worth individuals, family-owned businesses, and start-ups. We offer a wide range of services to our esteemed clientele which includes business setup solutions, corporate advisory services, global mobility, tax advisory services, and more.
It has recently come to our attention that according to Clutch’s list of top B2B companies, we are highlighted as one of the top accounting firms in the United Arab Emirates.
If you haven’t heard of Clutch before, it’s an established B2B reviews platform that helps firms across the globe connect with the solution providers that they need in order to improve effectiveness and increase productivity. The ratings and reviews platform publishes the most extensive and referenced client reviews in the B2B services market.
Throughout the year, Clutch highlights its highest-ranking firms across industries and locations. The Clutch Leader Awards recognize companies’ commitment to building their expertise, providing stellar customer service, and producing high-quality results for clients.
We couldn’t have won this award without our amazing clients. We are extremely grateful for their continued support and trust and we are especially thankful to those who took the time to leave us a review on our Clutch profile. Here’s what they had to say about working with us:
“The workflow is quite effective. They are also good in following up with us to get the required details so that things get completed on time.” – CEO, Aspire Systems
“Professional and Transparent approach and always kept us posted on the options available. We also were very happy with their level of continuous feedback on status.” – Managing Director, Multivista Global Pvt. Ltd.
Want to get in touch with the Intuit team? Simply fill out the form and a member of the Intuit team will be in contact shortly!
- Newsletter, U.A.E
- October 11, 2021
As Dubai Expo 2020 kicked off its inaugural ceremony with much splendour on 1st October 2021, the global business community became upbeat about a sustainable economic future with increased collaboration, innovation and opportunities in trade and investment. The six-month-long event with 192 participating countries, thousands of corporations and millions of visitors will indeed rekindle business interactions for putting the growth engine on track after widespread economic devastation due to the covid pandemic. Industry experts are also confident in the huge inflow of foreign investments in the UAE and several new business set up in Dubai.
The world fair, first in the Middle East coincides with the 75th year of Indian independence and will be the perfect venue for displaying its vibrant culture, innovative core and technological prowess over the coming six months.
Union Minister of Commerce and Industry, Piyush Goyal inaugurated the India Pavilion on October 1, Friday and said in a press briefing, “It is an outreach to the whole world to showcase a new India, an emerging technologically driven self-confident India. Dubai Expo 2020 is an opportunity to showcase India’s potential.”
The India Pavilion, located at Al Forsan Park next to the Opportunity District is one of the largest at the Dubai Expo and features an innovative moving facade with more than 600 rotating screens symbolizing ‘India on the Move’ and displays 75 stories of 75 years of Indian independence with an engrossing stimulus of “constant change” and “timeless endurance” at the front.
In line with Dubai Expo 2020 theme “Connecting Minds, Creating the Future”, India Pavilion is created on “Openness, Opportunity, Growth” and is centred on 11 primary themes including Climate and Biodiversity, Rural and Urban Development, Tolerance and Inclusivity, space, Golden Jubilee, Knowledge and Learning, Travel and Connectivity, Global Goals, Health and Wellness, Food & Agriculture, Livelihoods, and Water; and each having a dedicated zone under one high tech gigantic structure.
The India pavilion consists of four floors and displays its past, present and future powered by the latest technologies of Augmented Reality and Projection Mapping. The massive and captivating pavilion is an innovative combination of the Space program, Ayurveda, Yoga and a rapidly growing USD 3.5 trillion economy and also displays enormous opportunities rendered by its vast 1.3 billion population. The Pavilion also hosts an amphitheatre, conference halls, state pavilions, restaurants, and many other facilities.
While the first floor displays India’s cultural vibrancy, the second floor exhibits enormous opportunities to be derived from the India-UAE partnerships. The third floor is dedicated to corporate India and its growing strength and credibility in various sectors.
The Pavilion is designed to provide the visitors with an unforgettable experience of India’s unity in diversity, treasures and traditions, spectacular achievements, technological breakthroughs and myriad business opportunities. It is meant to inject a feeling of futuristic, modern and digitally strong India while simultaneously showcasing the beauty of Indian art, cuisine and culture.
India pavilion has planned to organize lots of conferences, B2B meets, cultural events, food festivals, online workshops, cinemas, debates, and competitions and will be visited by many social and political celebrities including business leaders and corporate heavyweights.
Fifteen Indian states and Union Territories including nine ministries from the Centre are taking part in this expo, which will be continuing till March 31, 2022.
The participating States and Union Territories at the India Pavilion are Gujarat, Karnataka, Ladakh, Telangana, Rajasthan, Maharashtra, Uttar Pradesh, Kerala, Jammu and Kashmir, Goa, Andhra Pradesh, Chhattisgarh, Jharkhand, Himachal Pradesh and Haryana and display respective region’s business advantages and growth opportunities.
Large Indian companies are also participating such as Tatas, Reliance, Vedanta, Hinduja Group, Adani, L&T, ITC, Hindustan Unilever Limited, Ease My Trip, Oyo, Standard Chartered Bank, Trident Group, Baidyanath, Apollo Hospital, Daawat Rice, Bank of Baroda, Patanjali, Dabur etc. and some leading UAE based business houses such as KEF Holdings, IFFCO, Aster, Lulu Group.
India put a brave front in its fight against the Covid pandemic and could successfully mitigate the adverse economic effects through the huge vaccination drive. The roll-out of several economic packages including the introduction of reform policies by the government has prepared the stage for a sustainable and robust economic growth phase to make the country a USD 5 trillion economy by 2025.
India has forged strong ties with the UAE and the proposed FTA between the two sides is likely to be signed during March next year. In a press meet during Expo 2020, Piyush Goyal remarked that the FTA holds tremendous potential for both the countries to enhance trade and investment and many investors in India are keen on Dubai company incorporation.
The Expo has presented India with a unique and strategic advantage and the country has planned to exploit it fully by focussing on countless opportunities that the country can provide to the global business and investing community. Addressing the nation on its 75th Independence Day, PM Modi said that no force on earth can stop India to realize her dreams and invited the citizens to be the flag bearers for global peace and safety. “The world’s economic revival is linked to the growth of India. The country is ready to do whatever it can to further global good and prosperity. This is an India that is reforming, performing and transforming,” Modi emphasized in his speech on Dubai Expo 2020.
- India, Newsletter
- October 10, 2021
Indian Prime Minister Narendra Modi set out on a three-day tour to the US from 22-25 September for attending the first in-person Quad Summit and began his visit schedule in the US on 23rd, Thursday by attending a session with prominent American CEOs from five different key sectors and appraised them on the business opportunities and key benefits of company registration in India.
Modi landed in the US on Wednesday and held face-to-face meetings with President Joe Biden and his deputy Kamala Harris and ahead of these official meetings met the CEOs of Qualcomm, Adobe, First Solar, General Atomics and Blackstone.
Two of the CEOs were Indian-Americans named Shantanu Narayen from Adobe and Vivek Lall from General Atomics. The other three were Cristiano E Amon from Qualcomm, Mark Widmar from First Solar, and Stephen A Schwarzman from Blackstone.
During his one-to-one meetings with the CEOs, Prime Minister Narendra Modi deliberated on the economic opportunities in India and emphasized saying,
“Will attend the QUAD meeting, and would also interact with leading CEOs to highlight economic opportunities in India.”
Modi’s meeting with the American CEOs from five key areas echoed the policies and priorities of the Indian government.
Meeting with Adobe CEO meant that the IT and digitization of the economy has been the topmost priority of the Indian government.
The meeting with Vivek Lall was significant considering General Atomics as a pioneer in drone technologies and one of the leading manufacturers of state-of-the-art military drones. General Atomics has already provided India with a few drones and is in the process of supplying a significant number of drones for Indian defence. The CEO of General Atomics was born in Indonesia and presently settled in California, for more than 10 years. He has been responsible for finalizing defence deals with American allies and clinched a business of USD 18 billion. The US only allows sharing of advanced defence technologies to its partners. Qualcomm is the global leader in 3G, 4G and next-generation wireless technology innovation for more than 30 years and pioneering the ways to 5G connectivity. The meeting with Qualcomm CEO, Cristiano Amon was important in the face of India’s push for the 5G technology adoption and revealed the company’s commitment to fulfilling Narendra Modi’s vision of transforming his country into a digitally empowered society. The San Diego-based company is in the manufacturing of software, semiconductors and services related to wireless technology and has offices in India. Large investments from Qualcomm were expected by the Indian PM.
As India is harnessing solar power for a prosperous rural India and taking huge initiatives in meeting its energy demand from clean and renewable energy, the meeting with Mark Widmar, the CEO of First Solar assumed significance as the company is the leader in providing comprehensive photovoltaic (PV) solar solutions globally.
The Arizona-based company has already recognized India’s geographic location as most conducive for solar power generation and announced a 3.3 GW of capacity solar plant in India with a USD 684 million project cost.
Blackstone is reputed around the world as a professionally managed investment firm that invests capital on behalf of pension funds, hedge funds, large institutions and individuals. Stephen A. Schwarzman is the Chairman, CEO, and Co-founder of this company and in 2019 has launched the first Real Estate Investment Trust (REIT) in India with Embassy group and then another two REITs in the country. The company asserted that it would invest another USD 40 billion in India over the next five years.
PM Modi also interacted with the CEOs from the US oil and gas sectors to discuss plans for addressing the country’s growing energy needs.
“It is impossible to come to Houston and not talk energy! Had a wonderful interaction with leading energy sector CEOs. We discussed methods to harness opportunities in the energy sector,” Modi remarked.
The American CEOs appreciated India’s moves in promoting doing business in India and welcomed measures taken by Modi’s government to liberalise the Indian economy including corporate tax structure revision. The CEOs assured their business presence in India and thanked the PM for the support initiatives being undertaken by his government. A complete guide on doing business in India can facilitate business setup in the country for aspiring American companies and investors.
- India, Newsletter
- October 9, 2021
India and the United Kingdom are aiming to resume negotiations on a Free Trade Agreement (FTA) on 1 November 2021 as the two countries agreed for an Early Harvest Agreement by March 2022 that would allow both to establish selective gains in commodities and services. India and UK arrived at this decision soon after a virtual meeting held between the Indian Commerce and Industry Minister Piyush Goyal and his British counterpart, Secretary of State Elizabeth Truss on Monday13 September 2021.
The announcement comes when India has initiated fast-tracking of FTA negotiations with several other countries including the European Union, Australia, United Arab Emirates, and Canada for promoting FDI with the help of a complete guide on doing business in India.
“Proposed FTA between India and the UK is expected to unlock extraordinary business opportunities and generate jobs. Both sides have renewed their commitment to boosting trade in a manner which benefits all,” a statement from the Indian Commerce and Industry Ministry revealed.
Earlier on September 3, Goyal said in an industry event that India was working on multiple FTAs with other democracies who believe in transparent, fair and rule-based investment and trade opportunities as a part of its renewed strategy to move past protectionism, reduce trade deficits and attract foreign investors for company formation in India.
“Substantial work has already been done and extensive stakeholder consultations have been held involving industry/business associations, export promotion councils, buyers/sellers associations, regulatory bodies, ministries/departments, public research bodies, etc,” Indian Commerce and Industry Ministry noted.
Goyal mentioned the formation of bilateral working groups (BWGs) for different tracks to identify and understand the ambitions, interests and sensitivities of each other to accelerate the negotiation progress. Regular meetings were convened amongst the BWGs and most of the work was almost over.
He believed BWG discussions will help both sides in understanding each other’s policy regimes and resume joint scoping discussions from 1st October for finalization of terms of reference and launching of negotiations in November.
“An interim trade agreement, as the first step of an FTA, would allow both of us to immensely benefit from the early gains of the partnership,” Goyal remarked. There is a need to strike a balance between commitments and concessions in goods and services, he emphasized.
There will be a reduction or elimination of tariffs on some selected goods during the interim trade agreement. In services, certain services of mutual interest may be included in the interim agreement. “If necessary, we may also explore signing a few Mutual Recognition Agreements in selective services like nursing and architecture services,” Goyal noted.
The UK Secretary of State for International Trade added, “Today Piyush Goyal and I launched trade working groups to lay the groundwork for our forthcoming UK-India trade deal, which will: boost access to more than a billion consumers; bolster our science and tech industries; and support jobs in both countries.” According to the UK government, regular ministerial dialogues between the two sides will help explore potential areas in the trade agreement encompassing tariffs, standards, Intellectual Property, trade remedy measures and data regulation.
In a bid to expand its market after Brexit, the UK has struck several FTAs and primarily with some of the largest and fastest-growing economies in the Indo-Pacific region. The UK has signed 68 deals and has reached FTAs with Vietnam, Singapore, Japan, South Korea, and Australia. A deal with India shall mean the promotion of exports, lowered tariffs, easing of regulations and enhanced bilateral trade.
Increasing UK-India trade has been dubbed a huge opportunity by the UK, given India’s position as one of the world’s biggest and fastest-growing economies and home to more than a billion consumers.
India is one of the key trading partners of the UK and the trade between the two countries stood at USD15.45 billion in 2019-20 and USD13.11 billion in 2020-21 with a trade balance in favour of India.
Data provided by the Ministry of External Affairs (MEA) revealed that during 2019-2020, India invested in 120 projects and generated 5,429 new jobs in the UK. For the UK, India was the second-largest source of foreign direct investment (FDI) in 2019 just after the US. There are more than 850 Indian companies currently operating in the UK and their combined revenue is almost Euro 41.2 billion, as per the ‘India meets UK” report- 2020 by CII- Grant Thornton.
Clinching an early Harvest deal will be favourable for both India and the UK and provide many benefits for enhancing economic recovery in the post-pandemic era and generate huge enthusiasm and momentum before signing the final FTA.
Newly introduced policies of India namely ‘Make in India’ and ‘Atma Nirbhar Bharat’ will be complemented once the FTA negotiations with trading partners come to fruition.
- Newsletter, U.A.E
- October 8, 2021
The property investors in Dubai can now avail three years visa with a minimum investment of Dh750,000 against Dh1 million required earlier, an official notification on the website of the Dubai Land Department (DLD) says. Previously the investor visa used to have a validity of 2 years and has also been extended now.
The visa facility is made available to the property investors by DLD through Taskeen Programme when an individual owns a property valued at a minimum of Dh750,000. The visa is renewable on the expiration of validity after three years.
This is a much awaited and highly welcome move to the real estate developers who demanded a long-term property visa for reviving the languishing real estate market. It is believed that the reduction in minimum investment amount would be an added advantage for real estate developers and help improve the sentiment of global investors willing to participate in Dubai’s flourishing real estate market during the historic event of Dubai Expo 2020. The property developers can see an increase in demand which in turn will boost the construction sector.
The government move has also been seen as timely and strategic as it would attract wealthy individuals in the middle east, many of whom are witnessing a growing geopolitical instability in the region, to own permanent residential property in Dubai and UAE for long term prospects and stability and would be an additional stimulus for the country’s economic growth.
For wealthy families across the world, Dubai is already well known for its high standards of living, world-class healthcare facilities, highest standards of safety, economic stability, ease of doing business, and with the roll-out of this new scheme, it shall further promote its competitiveness amongst the global investors and facilitate the business establishment and new company formation in Dubai.
Increased participation of entry-level buyers is expected for Dubai real estate assets and would present an opportunity to the real estate developers in selling off their existing properties and freeing up their blocked capital for new projects. Though it would take some time to correctly ascertain the exact ramifications of this move, it is unequivocally agreed by all quarters associated with Dubai Properties that the confidence of property developers in Dubai will be many times boosted on the back of extension of visa validity.
The Dubai real estate sector has started showing signs of recovery after being severely hit by the pandemic as almost 10% of expatriates had to leave Dubai due to job losses and many residential properties stayed vacant amidst a fall in real estate prices.
Emaar Properties, one of the biggest property developers In Dubai witnessed its sales skyrocket to a new high of USD 2.63 billion during the second quarter of 2021 and the official sales price index released by the DLD was also seen rising. August 2021 recorded the highest property sales of almost 4 billion USD last achieved more than a decade ago.
Dubai residency law mandates certain documents for investor visa application including the passport of the investor and an electronic copy of the title deed certificate. Owning a property with a minimum value of Dh750,000 is also mandatory for the applicant. For mortgaged properties, 50% of the property value or a minimum of Dh750,000 payment must be made to the bank. A mortgage bank statement along with a no objection letter in Arabic is needed for the visa application process. As the visa application process varies from emirate to emirate, involves several steps and can be overly complex at times needing expert knowledge on Dubai residency law, professional Dubai based Investor visa services are normally recommended for speedy visa processing and future follow-ups with the General Directorate of Residency and Foreign Affairs ( GDRFA), Dubai.
Dubai issues golden visas which are also long-term UAE investor visas only issued to eligible investors for a five or ten-year residency based on the size of their investment in the UAE and sponsor an investor’s spouse, children, one manager and one advisor.
While the 10-year residency visa applies to investors of at least Dh10 million, a 5-year residency visa needs a minimum investment of Dh 5 million. The long-term investor visa also mandates an additional set of requirements established by the GDRFA-Dubai and visas are granted to selected individuals belonging to specialized fields such as technical, research, science, medicine etc.
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