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UK Prepares for Free-Trade Deal with GCC Countries
  • Newsletter

UK Prepares for Free-Trade Deal with GCC Countries

The opportunity and freedom to strike global trade deals have long been cited as one of the main reasons for the UK leaving the European Union (EU).

In recent times it was also supported by Lord Edward Lister, co-chair of the UAE-UK Business council and a former Downing St chief of staff, revealing to business forums that the UK has made initial advancements towards striking free-trade deals with the Arabian Gulf countries.

Citing trade and business partnership with the UAE as unprecedented, Mr Lister, spoke to an online forum on Wednesday, 28th April 2021 and claimed that significant developments have been taking place for establishing trade ties with the GCC countries.

“There is a lot of work underway at the moment – the consultation is shortly about to start on it – on new trade arrangements into the Gulf, which will be a free-trade agreement,” he added and pointed out the involvement of the UK government in this regard.

“As the UAE reaches its 50th anniversary, the two countries’ friendship is going through a revival at the moment”, commented Ahmed Ali Al Sayegh, Minister of State of UAE & Chairman of ADGM and a co-chair of the business council.

Me. Al Sayegh also highlighted that the UAE and the UK have been taking leadership roles in the covid 19 vaccination drive and are optimistic of complete recovery from the pandemic with a resurgence from the social and economic issues caused by Covid-19.

The UAE Minister of State also noted saying, “This is such a pivotal year for both countries and it offers us an unprecedented opportunity for growing our trade and investment relationship.”

“We have both taken great strides in addressing the Covid crisis by vaccinating and hopefully our economies will be growing back through the investments we are making in infrastructure, technology and skills,” he commented.

It was one year ago when the UK left the EU politically and excited from the Union’s single market at the end of 2020. Since quitting, the UK wanted to forge new trade deals with potential economic partners in the world and especially with the Arabian Gulf countries providing better market access and a more conducive business and investment climate.

The former Chief of Staff aged 71, recently stepped down as the official envoy to the Gulf as he anticipated that developing circumstances of trade deals need someone else to play a bigger role and in a permanent capacity. He also sounded optimistic about the pandemic recovery and hoped for more resilient economies of the two countries with new trade and investment partnerships and business setup in Dubai.

The UAE and UK governments reached a partnership agreement in March, with Mubadala Investment Company as a strategic investment program and agreed to invest a total of 800 million pounds (USD 1.11 billion) in the British life sciences industry and stretched over the next five years.

Rebalancing the economy by adhering to some of the proven principles demonstrated by the UAE has also been a priority for London as the covid 19 pandemics has brought out some weaknesses of the British system to the surface.

“We’ve all learnt some terrible lessons from Covid,” Mr Lister remarked and also added saying, “We’ve got to have a much more resilient supply chain in place.” “The number one area there is food security and agricultural technology”, he noted emphasizing “The ‘build back better’ policy of the prime minister is a desire to increase economic production, particularly in the regions of Britain.”

Investments made jointly with a wealth fund for growth areas is a rare event for the British government as done in the Mubadala agreement in March, Mr Lister added.

He claimed that the recent partnership would unfold increased opportunities and the executive director of Mubadala’s UAE clusters, Badr Al Olama also reciprocated. As per him, this would lead to more investment opportunities and pave the path for more UAE and UK strategic investments and company formation in Dubai.

“We want to develop the new dynamic sectors such as energy transition and life sciences,” Mr Al Olama said.

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Oman Becomes the Fourth GCC Country to Implement VAT
  • Newsletter, Oman

Oman Becomes the Fourth GCC Country to Implement VAT

The Value Added Tax (VAT), a consumption tax system has been enforced in Oman on Friday, the 16th April 2021 and the Sultanate has become the fourth country to join the other three GCC member states including the UAE, Saudi Arabia, and Bahrain to introduce this tax.

VAT was originally planned by Oman Tax Authority (OTA) in October 2020 vide Ministerial Decision 53/2021 and Official Gazette no.1383 publishing the regulations with implementation requirements and provided almost six months to the Omanis to be prepared for this tax. The country also plans to enact income tax in the foreseeable future to become the first Gulf nation to do so.

Oman has levied a 5 per cent VAT in line with the ‘Oman Vision 2040’ to diversify its oil-based economy to non-oil sectors e.g. manufacturing, travels and tourism and logistics and also to address its Fiscal Balance Plan for the future.

Both UAE and Saudi Arabia introduced this tax system on 1st January 2018 followed by Bahrain which implemented VAT after one year on 1st January 2019. The Kingdom of Saudi Arabia has already increased its VAT rate by 3 times taking it to 15 per cent since July 2020 to support its healthcare system including relief works and preventive measures for the pandemic.

An OMR400 million (USD 1.04 billion) has been estimated to be raised from this consumption tax this year that comes around 1.5 per cent of the country’s GDP and would help bring down its fiscal deficit.

A Common VAT Agreement was signed by the six GCC countries in June 2016 and the 5% VAT rate announced by Oman is consistent with this GCC Unified Agreement. There are also provisions made in Oman VAT law for zero-rating and exemptions. It is to be noted that the 5 per cent tax rate is one of the lowest rates as per the prevailing global standard.

While Qatar has planned to implement the VAT system in the second or third quarter of 2021 almost streamlining its tax administration system, Dhareeba; the Kuwait government is yet to confirm the VAT implementation schedule. Kuwait parliament deferred the implementation date many times in the past however as reported by the International Monetary Fund (IMF), the country is likely to enact its VAT law by 2022.

The below-mentioned supplies are treated as zero-rated as per the Oman VAT Law and don’t attract VAT due to social necessity.

  • Supply of certain food products
  • Supply of some specified medicines and medical equipment
  • Investment in gold, silver, and platinum.
  • Supplies related to the transport of goods or passengers made internationally or within the GCC countries including services in connection with transport
  • Cargo and passengers related to international trade
  • Supplies related to oil, oil derivatives and natural gas
  • Some specific supplies made outside GCC countries under certain conditions
  • All goods and services exempt from VAT in Oman and supplied to non-GCC countries


As per conditions outlined in the Oman VAT Executive-Regulation, the following essential services are exempt from VAT as per the Oman VAT Law.

  • Financial services
  • Healthcare services
  • Goods and Services related to health care
  • Goods and services related to education
  • Resale of residential properties
  • Transport of local passengers
  • Renting of properties meant for residential purposes


Certain imported goods also enjoy the VAT- exempt status under Oman VAT law including returned goods, personal luggage, etc.

Excluding the above-mentioned supplies, all other goods and services in Oman attract VAT at the standard rate of 5% and as mentioned in the Oman VAT Law.

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Singapore to work with The UN Member States to Bridge Digital Divide
  • Newsletter, Singapore

Singapore to work with The UN Member States to Bridge Digital Divide

The poorest in our society are the most affected class by covid 19 pandemic with minimum and no access to modern digital technologies including telephone, internet, television, and computers.  

The digital divide refers and reflects this existing gap and inequalities emphasizing the importance of bridging the digital divide by providing digital infrastructures, services, and applications with an all-inclusive approach and empowering unprivileged individuals and societies to effectively utilize the information and communication technologies. It is feared that expanding digital technology can heighten digital inequalities with disinformation, harassment, and abuse, especially to women and children.

For combating the covid pandemic with sustainable growth, the UN President of the General Assembly recently convened a virtual one-day High-level Thematic Debate on Digital Cooperation and Connectivity on Tuesday, 27 April 2021, in the UN’s General Assembly Hall headquartered in the USA. The meeting was headed by the UN general assembly president Volkan Bozkir and aired online with some international speakers delivering speeches.

Singapore Minister of communications and Information, Mr. Iswaran participated in this high-level thematic debate and noted that though covid 19 has speeded up the digital transformation drive through the world, it has also increased the danger of inequalities between “the digital haves and have-nots”.

As per Roland Berger’s Digital Inclusion index 2020, Singapore ranked first among 82 countries across the world and Mr. Iswaran highlighted the need for an “inclusive, innovative, and interoperable,” digital future and expressed Singapore’s willingness to work in unison with other member states of the UN.

The one-day thematic debate stressed the immediate need for political commitment at the highest levels to address the digital divide in the current Covid-19 situation. The debate was held in response to requests made by the member states and was represented by private and civil society sectors including participants from more than 60 countries.

“To ensure that digital transformation efforts are inclusive, countries around the world must recognize the diverse circumstances faced by nations”, Mr. Iswaran deliberated in his speech.

He also emphasized that the measures taken by different countries and the experiences gained can be shared on UN platforms such as Internet Governance Forum for a strong and focused approach on digital inclusion.

“The platform brings together various stakeholders from the private and public sectors to discuss public policy issues relating to the Internet. The UN Roadmap for Digital Cooperation, which was released in June last year, is also a good start,” said Mr. Iswaran.

The UN has come up with a road map for bridging the digital divide that includes achieving universal connectivity by 2030, creating a more equitable world by promoting digital public goods, digital inclusion for all including the most vulnerable sections, strong digital capacity building, protection of human rights, global cooperation on AI, improving digital security, and lastly, a strong and effective architecture for digital cooperation.                 

“Singapore has a Digital Readiness Blueprint that could serve as a useful reference for other countries in fostering digital inclusion”, Mr. Iswaran pointed out.

The Singapore digital readiness blueprint acts as a guide to equip all segments of society including children in lower-income households, senior citizens, micro, small and medium-sized enterprises with digital skills and access.

“Countries must also be innovative in their efforts to end the digital divide”, emphasized Mr. Iswaran.

“The accelerated pace of digital transformation has created opportunities but is also profoundly disruptive to some, and requires complex trade-offs,” Mr. Iswaran narrated.

“In Singapore, the Digital for Life movement that was launched in February will encourage ground-up projects that bridge the digital divide”, he emphasized. As per him, the move shall provide resources to enhance basic computer skills.

Singapore treats the ‘Bridge the Digital Divide’ initiative as corporate social responsibility and advocates a new company set up in Singapore upon the policy of partnerships and collaboration with non-profit organizations and individuals working together for this cause.

The Minister also highlighted the importance of an interoperable digital framework for a brighter global digital environment that would help individuals and businesses gain access to global opportunities.

“In Asian, initiatives like the ASEAN Data Management Framework will help to facilitate the flow of data across borders to unlock new business opportunities, especially for SMEs”, Mr. Iswaran remarked.

He also added that the data management framework shall promote data governance including management and protection of data.

The first ASEAN Digital Ministers’ Meeting held in January approved this initiative led by Singapore.

In an effort towards bridging the digital divide, the Singapore government solicits and encourages mobile, laptop, tablet, and other digital gadgets donations from investors looking for company registration in Singapore.

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UAE Participated In IMFC Meeting
  • Newsletter, U.A.E

UAE Participated In IMFC Meeting

UAE Minister of State for Financial Affairs, Obaid Humaid Al Tayer participated in the recently held spring meeting of the International Monetary and Financial Committee (IMFC) convened in a virtual format together with the annual meetings of the International Monetary Fund (IMF) and the World Bank Group during April 5 to 11 2021.

Ministers of Finance and development, Central Bankers, representatives of civil society organisations and private sector executives attended this meeting to discuss global economic concerns, the latest global economic developments and the financial and economic outlook due to the Covid-19 pandemic. The agenda of the meeting also included poverty eradication, the effectiveness of financial aids, global economic and financial systems including issues of high debt risks and international economic and development policies.

The Minister of State for Financial Affairs emphasized UAE’s resolve to work hand in hand with the international communities to overcome the risks and challenges posed by the pandemic and ensure sustainable economic recovery and growth.

Abdulhamid Saeed, Governor of the UAE Central Bank, Kristalina Georgieva, Managing Director of the International Monetary Fund, and many finance ministers from different countries also took part in this meeting.  

Al Tayer appreciated IMF’s initiatives and timely interventions for world economic recovery with a revised growth prospect of six per cent for 2021 globally from a negative growth experienced during the previous year that also supported more foreign company formation in Dubai.

The minister also echoed similar concerns as reflected by IMF over the possibility of an imbalanced economic recovery in the Mena region widening the inequality gap arising out of disproportionate economic and social effects and stressed upon fiscal priorities aimed for achieving inclusive sustainable economic development.

“We welcome the Global Policy Agenda devised by Kristalina Georgieva, managing director of the International Monetary Fund, as a comprehensive framework for recovery. The UAE will continue supporting the IMF’s endeavours to mitigate the financial and economic repercussions of the pandemic to achieve global recovery and attain strong, sustainable, balanced and comprehensive economic growth,” he remarked.

Al Tayer added that healthcare continued to be the topmost priority including production and distribution of vaccines for speedy economic recovery. He also informed that USE joined the global efforts to develop and produce covid 19 vaccines with a targeted figure of 200 million doses of Hayat-Vax vaccine annually.

The minister welcomed the initiative of IMF to reallocate Special Drawing Rights (SDRs) for middle and low-income countries as it would help them to fund healthcare systems and take preventive measures against the virus. He also appealed for increased lending and technological support to these countries.

He also noted, “Beyond just recovery, we must pursue socially inclusive and environmentally sustainable models of growth as the only path forward in the post-COVID-19 era, where the IMF can support by facilitating the exchange of expertise, supporting capacity building, and enabling funding efforts.”

Al Tayer added: “As a general principle, we urge the IMF to advance its climate agenda in accordance to the Paris Agreement, which enjoys multilateral consensus, by supporting countries to achieve their Nationally Determined Contributions, while considering their national circumstances and development priorities.”

UAE has taken several social, economic and political measures to mitigate the adverse effects of the pandemic and has demonstrated its commitment by promoting new business set up in Dubai, he highlighted. He also made some additional recommendations including maintenance of a strong, adequately resourced and quota-based fund and highlighted the need for transparent communication to win and maintain public trust.

The IMF Board of Governors responsible for monitoring and management of the world financial and monetary system and timely actions on disruptive issues e.g. covid 19 pandemics are provided with appropriate reports and suggestions during the IMFC meetings.

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Everything You Want To Know About Singapore Tech.Pass 2021
  • Newsletter, Singapore

Everything You Want To Know About Singapore Tech.Pass 2021

In an attempt to boost the already developed technological ecosystem of Singapore, the Economic Development Board (EDB) on 12th November 2020 announced the official launching of Tech. Pass specifically targeting the founders, leaders and technical experts with proven experience in globally reputed and established high growth technology companies.

Tech. Pass is a Singapore work permit for foreigners that allows established global tech professionals to come to Singapore for spearheading technical innovations and training the local Singaporeans on the latest technologies. The Tech. Pass is an extension of the Tech@SG programme which was launched in 2019 as part of Singapore’s efforts to attract smart Industry 4 technical talents to promote Singapore’s position as one of the top technological hubs.

Tech. Pass is now included in the Singapore work pass schemes in Singapore, which include the Employment Pass in Singapore and Entrepreneur Pass (EntrePass) however with some differences in administering bodies, validities and fees.

Since the time of launch, the Tech@SG programme has been providing best in class technical talents to many companies in potential growth areas including digital, biotech, cleantech, agritech, fintech, medtech.

This programme has also been providing necessary access to business networks and facilitating employment pass in Singapore (EP) applications for the core technical team members comprising highly accomplished entrepreneurs, business leaders, or technical experts.to Singapore and provides them with flexibility in participating in a variety of activities that can contribute to the tech ecosystem.

However a Tech. Pass holder cannot be automatically eligible for the Tech@SG Programme unless their company meets the separate company eligibility conditions to qualify for the programme.


Tech. Pass offers multiple benefits over other Singapore work passes with greater flexibility in their participation in certain activities in Singapore including

  • Start and run one or more tech companies;
  • Become an employee in more than one Singapore-based companies
  • Become a board of director
  • Be a shareholder or investor
  • Engage in Singapore companies as advisor or mentor
  • Become a Lecturer/ Professor in a Technical Institute
  • Work as a corporate trainer
  • Bring a spouse, children, and parents on either a Dependant’s Pass (DP) or a Long-Term Visit Pass (LTVP).

Singapore has come up with a set of Criteria for Tech. Pass programme with a validity of two years allowing the holder to

  • Start and operate one or more tech companies
  • Be an employee in one or more Singapore-based companies at any time
  • Transit between employers or to an entrepreneur
  • Be a consultant or mentor, lecture in local institutions of higher learning, or be an investor and director in one or more Singapore based companies
  • Sponsor stay for spouse, children, and parents in Singapore on either a Dependant’s Pass (DP) or a Long-Term Visit Pass (LTVP) issued by MOM

Eligibility Criteria for Tech. Pass has been defined by EDB and to be eligible for the pass, applicants must satisfy any two of the following conditions:

  • Drawn a minimum fixed monthly salary (in the last 1 year) of SGD 20,000 or equivalent foreign currency
  • Possess minimum 5 cumulative years of experience and in a leading role in a tech company with a valuation/market cap of at least USD 500 million or at least USD 30million funding raised
  • Have at least five cumulative years of experience in a leading role with major contributions in the design development and deployment of a tech product with a minimum of 100,000 monthly active users or at least USD 100 million annual revenue generation
  • Business owners and any other candidates with annual income over SGD 240,000 or its equivalent in a foreign currency

Tech. Pass is renewable only one time for two years subject to fulfilling the following conditions

  1. An assessable income of SGD 240,000
  2. Assessment is done by the Inland Revenue Authority of Singapore for salaries and/or business income
  3. Proof of Annual business spending of minimum SGD 100,000
  4. Employing at least 1 local PME4 or 3 LQS5 and
  5. Performing a minimum of two roles mentioned in the two below columns and one of which should be from the first column as a minimum

First Column

  • Founded a company engaged in tech-based or tech-enabled products or services
  • Served a top role in a Singapore based Tech company such as Asia Pacific MD, CEO, CTO
  • Worked in at least two Singapore based Tech companies
  • Employed in a Singapore Tech company as a technical team leader and a particular tech field
  • Employed as a Technical Team leader in two or more Singapore based companies

Second Column

  • Served a Board of Director in a Singapore based company and not necessarily a Tech company
  • Worked in Singapore-based start-up as a mentor/advisor
  • Employed in Singapore Institute of Higher Learning (IHL) as a professor or lecturer or adjunct professor/lecturer
  • Engaged as a trainer in some form not covered by 2nd and 3rd points mentioned above such as workshops, corporate training classes etc.
  • An Investor in one or more Singapore based Tech companies.

The Tech. Pass Application Process involves

1. Pre-application activity include verification of eligibility and preparation of supporting documents
2. Applying for Tech. Pass by downloading the Tech. Pass application form for yourself and dependents if applicable
3. Filling up the soft copy of the application form and obtaining an auto-generated payment reference number
4. Taking print out of the application form and getting the form signed with relevant supporting documents specified in the application form
5. Making Payments of SGD 105 for each application via PayNow or Telegraphic Transfer
6. Uploading completed and signed application form with the following documents

  • Payment receipt
  • Travel documents and
  • Supporting documents for dependants confirming your relationship with the DP/LTVP applicant, verification of Vaccination Requirements document issued by HPB, as appropriate

7. Getting the Pass Issued

It usually takes around 8 weeks to process Tech. Pass applications unless there are requirements for additional documents and information.

Once approved, you will receive an IPA letter by email providing 6 months for coming and getting the pass issued for the start work or business activities in Singapore.

The Fees involved is SGD 225 for each pass and SGD 30 for each Multiple Journey Visa, whenever applicable. No extension to the IPA is granted.

The Tech. The pass has come into effect from January 2021 with a quota available for the first 500 applicants on a first come first serve basis.

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India Enjoys Growing Trade and Investment From the UK
  • India, Newsletter

India Enjoys Growing Trade and Investment From the UK

India and the UK share long historic ties and as one of the leading G20 investors, the UK has made an investment of 29.56 billion USD in India since 2020 and the number of UK businesses has jumped more than two times during this period with many new India company formation.

The sectors that have been witnessing strong investment growth are healthcare, consumer goods, retail, and infrastructure. Both the countries have long been working to strengthen and improve the trade and investment relationship including enhancement of collaboration in technology and pharmaceuticals.

India having the world’s third-largest startup base can join hands with the UK which has the third-largest Unicorn base in the world to create business growth and employment.

There is no bilateral free trade agreement (FTA) between the UK and India however as a part of a roadmap to future FTA and during the 14th Joint Economic and Trade Committee (JETCO) meeting convened in 2020; trade and investment ministry officials from both countries committed to set up Enhanced Trade Partnership (ETP) between the two countries expected to be officially launched during the visit of the UK Prime Minister during 2021.

UK Investment Status in India

In collaboration with the Department of International Trade (DIT) and Confederation of Indian Industry (CII), Grant Thornton Bharat a reputed consultancy firm in its ” Britain Meets India” report emphasized a stronger trade and investment relationship between India and the UK, especially after covid and post-Brexit. The report highlighted some facts about some information on UK investment in India as under

  • UK FDI in India increased from USD 898 million in 2015-16 to USD 1,422 million in 2019-20.
  • 572 UK companies in India contributed a total turnover of 46.73 billion USD providing direct employment to 416,121 people
  • The goods and services sector contributed to 26.7 billion USD during 2020
  • India is the preferred country for the UK for economic partnership especially post Brexit
  • Top-ranked sectors being watched by the UK companies are industrial and business service sectors with Maharashtra topping the list of preferred investment destinations followed by Haryana, Delhi, Tamil Nadu, Telangana, and Karnataka.
  • Enhanced and continued business collaboration during post covid made India-UK trade and investment partnership stronger.
  • Supply chains for Indian pharmaceutical products and surgical masks remained uninterrupted for the UK and other countries as humanitarian gestures including future investment for mutual economic prosperity
  • Relentless collaboration between the two countries in the research, design, and manufacturing of vaccine has further enhanced the investment relationship between the two countries
  • Dyson Technology, Aviva Life Insurance, Diageo Business Services, RMD Kwikform, and FMC Technologies have been termed as the fastest growing UK companies in India, and Vedanta, Vodafone, Hindustan Unilever, United Spirits India have become the top 20 UK companies by revenue. I
  • Top UK employers in India include G4S Group, Vedanta Resources, and HSBC Holdings

Sector-Specific Business Opportunities in India for UK Investors

 As per Invest India report, the following Indian business sectors are drawing maximum interest amongst the UK investors

Indian Chemicals sector nearly contributes to 3 percent of world production of chemicals with more than 80,000 products and generating more than 2 million people and permitting 100 percent FDI through faceless automatic route. Tata Chemicals, Atul, Reliance, and Asian Paints are major players in this segment.

The electronics and Telecommunications sector with smartphone manufacturing is the second-largest in the world with a projected turnover of approximately 400 billion USD by 2025. FDI up to 100 percent is allowed through an automatic route. Consumer and industrial electronics, computer hardware, and LEDs do also come under this sector and Samsung, Apple, LG, Intex are the major players.

The Food Processing segment is the second-largest in the world and dairy, fruits, vegetables, poultry, fisheries come under this sector with 55 mega food parks spread across the country. Britannia, Nestle, Amul, and Hatsun Agro are some major players, and 100 percent FDI is permitted through the automatic route.

The E-commerce and Retail sector is the third-largest in Asia and online grocery, e-pharmacy, and social commerce are the sub-sectors. 100 percent FDI is allowed and Adidas, Marks & Spencer, Dyson are some major players.

Aerospace and Defense sector with the second largest armed forces and worth 42.7 billion USD allowing 49 percent FDI under automatic route and 100 percent under the government route with BEL and HAL being the major players.

The IT and Business Process Management (BPM) sector contributes to 8 percent of the country’s GDP with more than 500,000 high skilled professionals.

Why Choose India Over Other countries

As per the recent forecast, India would be the third-largest economy in the world with a huge domestic market and has considerably eased the process of How to register a private limited company in India for improving the country’s ranking in the ‘ease of doing business index.

The following are some reasons that are attracting overseas investors to do business on Indian Soil

  1. India has received 73.45 billion USD FDI inflow in 2019-20 and one of the fastest-growing economies
  2. Global maritime trade to shift from the Pacific to Indian ocean providing India growing economic influence
  3. India improves its position in global innovation index 2020
  4. India has the largest youth population in the world
  5. National Infrastructure Pipeline initiative has been announced and is being undertaken for providing world-class infrastructure facilities
  6. Rising global competitiveness and drastic improvement in Global Competitiveness Index

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DIFC Innovation License for Startups
  • Newsletter, U.A.E

DIFC Innovation License for Startups

Dubai International Financial Centre (DIFC) is the fastest growing financial center in the Middle East and Africa (MENA) region and has been dedicated to the economic excellence of the nation by promoting technological innovation and providing a conducive and enabling environment to the technology and financial services industries.

 

DIFC, acting as the harbinger of economic prosperity in the Middle East, Africa, and South Asia (MEASA) region as the largest financial free zone has recently announced a new license for startups called Innovation License when the DIFC corporate startup license holders under this scheme will join the communities of more than 200 technology companies, 2000 plus firms with more than 25000 professionals.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai originally announced this Innovation license during early 2020 to attract new categories of businesses to the financial center as a key initiative of Dubai Future District with a provision of subsidized commercial licensing option for USD 1500 per annum minimum.

Innovative and creative business entities will be able to grow and expand their business utilizing the legal and regulatory framework of DIFC complemented by world-class intellectual property and data protection rights.

“The new DIFC Innovation License provides an important springboard for future economy pioneers to establish, upscale, and future proof their business within the stable framework of a world-leading global financial center,” added Salmon Jaffery, Chief Business Development Officer, DIFC.

Salmon Jaffery also highlighted, “It is an exciting new offering that we hope will attract technology-led, sector agnostic start-ups that will disrupt the technology and financial sectors. These types of businesses have an important role in shaping the economic future of Dubai, UAE and the region. They will be welcomed by members of DIFC’s ecosystem and become a central part of the new Dubai Future District.”

Officially launched in August 2020, the initiative has already started witnessing new startups and entrepreneurs opt for Innovation license and in the applicable areas of IT infrastructure, Software Development, Internet and cloud migration consultancy, Smart Technology, R&D, and computer consultancy

Besides offering co-working spaces at an affordable rate of USD 500 per month, DIFC provides numerous benefits to Innovation License holders including a registration fee of USD 100, USD 250 data protection fee; securing up to 4 visas when renting flexible desk space, and 50 percent subsidy on additional visas.

IMC is a Dubai-based PRO services company with a team of highly qualified and result-oriented professionals and is well conversant with the local laws and regulations. In addition to rendering our round-the-clock active support in the entire licensing and registration process, we will also help you in identifying the most suitable business activities that can result in a high level of success under this new DIFC Innovation Licensing scheme.

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Global Economy Will Witness Stability and Growth In 2021
  • Newsletter

Global Economy Will Witness Stability and Growth In 2021

2021 will move towards economic prosperity with strong economic and profit growth throughout the year in equities, real estate, and bond markets including particular commodities; Invesco, the Investment management firm, and a global company headquartered in Atlanta with regional offices in 26 countries reports.

“Given the apparent success of vaccine rollouts in the developed world, we believe the global economy will show solid growth in 2021, partly as a function of a rebound from a deep recession, partly due to a gradual release of pent-up demand and also due to financial support, especially in the US. At the same time, we expect major central banks to continue providing generous support,” said Paul Jackson Global Head of Asset Allocation Research of Invesco in a report on 29th March Monday 2021.

Market Experts and strategists from Global Market Strategy Office in the USA are upbeat on the cyclical assets and businesses such as restaurants, hotel chains, airlines, furniture, high-end clothing retailers, and automobile manufacturers as the global economic indicators are trending in the right and upward direction buoyed by positive market sentiment at the backdrop of a huge economic push by most governments, high liquidity, and vaccine rollout.

However, many learned economists and market experts including Invesco cautioned about some unforeseen challenges and narrated some factors that could dampen this economic growth forecast. As also noted by Jackson from Invesco, the five reasons mentioned below can force us to shift our priorities and preferences and make us more defensive in our approaches.

  • Lingering of the covid pandemic with a resurgence in virus infection
  • Disruption in economic recovery triggered by a reduction in government spending, curtailment in economic stimulus, collateral damages, lowering of government support and incentives to businesses and households
  • Rise in inflation forcing central banks towards inflationary measures with increased interest rates
  • Higher bond yields and an unfavorable correlation between equities and bonds
  • The current markets are at a historic high as the hope for economic recovery has already been priced in


“We think the most likely problem is that markets have priced in a lot of recoveries. If we are to remain positive about cyclical assets, we need to become even more aggressive in our assumptions about growth and future spreads/valuation multiples. We are happy to do this, given that we now feel more comfortable about the global recovery, but it has the downside of forcing us to accept that government bond yields will rise more than we previously thought,” Jackson remarked.

The economic growth projections are made on certain assumptions such as stable interest rates and continuation of asset purchase.

Experts from Invesco believe that a positive correlation will be maintained in bond yields and equity prices for economic growth to continue.

Besides, Invesco expects real estate yields to be more attractive compared to other asset classes and will mitigate the risk of higher bond yields.

“Even if cash flows bounce less strongly than for equities, yields are high and we expect them to be stable,” Jackson added.

Energy and industrial metals are considered expensive while Agricultural commodities are cheap and would act as a cushion against rising inflation and interest rate hike.

Europe and the emerging markets are on the list of favorites of Invesco and mostly to gain during global economic recovery and expansion.

Many research institutions including OECD believe that by the end of 2021, more than 80 percent of the global population will develop immunity against the virus mostly contributed by vaccination drives and the economy will grow at a rate of 7 percent and more which would be a big jump.

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  • Newsletter

Managing Your Payroll Outsourcing Services

The secret to a successful business lies in building trust with the stakeholders and meeting them halfway in all business dealings. Payroll outsourcing services is no exception and considering it as your business partner and an extension of your internal HR team can help establish open and honest communication between you two significantly contributing to the business’s performance.

Payroll management is one of the trickiest functions in an organizational and business perspective where accuracy and timeliness are of paramount importance.

Managing payroll is not just about handing over a paycheque to your employee at the end of the month rather consists of a set of administrative functions including employee benefits, taxation, turnover, incentives, etc which are often complex, cumbersome, and stressful.

What is Payroll Outsourcing and How Does it Operate?

Payroll outsourcing involves contracting an external entity to handle payroll tasks. This external provider manages various aspects such as taxes, direct deposits, and routine processes like garnishments and salary calculations. Additionally, they may offer tools for convenient 24/7 access to payroll details for both businesses and employees. Opting for payroll outsourcing enables businesses to streamline operations, cut down on paperwork, and decrease the time HR staff dedicate to payroll duties, ultimately saving both time and money.

Payroll outsourcing services offer multiple benefits and are

  • Saves time
  • Ensures tax remittance correctly and on time
  • Other value-added services
  • Comprehensive reporting with elaborate information
  • Ensures timely compliance of revised regulations of the pension plan, insurance, etc.
  • Saves money
  • Ensures minimum Employee grievances
  • Easy access to the latest technology
  • Ensures Smaller carbon footprints with reduced paperwork
  • Review and Analysis of data for strategic planning

Besides maintaining trustworthy business relationships, efficient management of payroll outsourcing services also includes the following

  • Deciding on the point of contact for payroll service providers within your organization with clearly defined responsibilities can go a long way in bringing success for your payroll outsourcing. There should be someone authorized to have a strategic relationship with the vendor and preferably be someone from the payroll function with one to one relationship with the service provider’s representative responsible for the overall account of your company.
  • Ensuring free and open communication with regularly scheduled meetings is also necessary with the respective point of contact. While the day-to-day contacts meet regularly on a weekly or fortnightly basis to keep a tab on the current payroll issues and immediate action plans, the strategic top-level contacts can meet every month suggesting future improvement programs on customer’s account performance, customer service issues, if any including plans for forthcoming changes to the account. Top management executives should also meet at prescribed intervals usually once in six months for account review meetings focused on the company’s key policy changes, M&A, etc. including new value-added offerings and any technological up-gradation from the payroll outsourcing services.
  • Tracking and Validations of invoices are critical for ensuring financial compliance and business transparency with your vendor. For global payroll vendors, fluctuating exchange rates can significantly change the bill of expenses needing careful monitoring and validation of invoices.
  • Reviewing value-added services from your vendors is important and needs to be reviewed on a scheduled frequency between the top management of two partners. Staffing, training, technological innovations including accounting could be potential areas where your payroll outsourcing services can actively contribute.
  • Conducting periodic performance and focus reviews through Service Level Agreements and Key Performance Indicators are is mandatory to ensure satisfactory compliance with and adherence to documented agreements and performance metrics and necessary corrective and preventive actions required for payroll outsourcing services.
  • Signing a non-disclosure agreement with your payroll vendor is often necessary considering the privacy and confidentiality of payroll data and to safeguard it from being stolen.

FAQs:

What are the advantages and disadvantages of contracting out payroll services?

Among the benefits of outsourcing payroll are time savings, error reduction, enhanced compliance, and access to specialized expertise. However, entrusting sensitive information to a third-party provider means relinquishing some level of direct control.

How does the process of outsourcing payroll function?

When a company entrusts some or all its payroll tasks to an external entity, it’s referred to as payroll outsourcing. Apart from handling payroll processing, comprehensive service providers typically assist with tax filings, ensuring compliance with regulations, maintaining data security, and managing unemployment claims.

Is opting for payroll outsourcing advisable?

Every business decision has advantages and disadvantages, and payroll outsourcing is no exception. Before engaging with a comprehensive payroll service provider, employers should ensure that the vendor can fulfil all their needs and has a dependable track record.
What advantages do payroll outsourcing services offer?
Employers can save time and money by outsourcing their payroll tasks. This frees them from extensive administrative duties, allowing them to concentrate on expanding their business. Moreover, enhanced accuracy can avert expensive fines. Full-service payroll providers with adaptable payment options and self-service applications can also enhance employee contentment.

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World Alliance of Inter Financial Centres (WAIFC) Accorded Membership to The Dubai International Financial Center (DIFC)

In March 2021, the WAIFC board unanimously agreed to recognize the DIFC, the leading financial center in the MEASA region as a member of the association, the 4th from the GCC to spearhead the development of digital finance and in the areas of Fintech, Sustainable Finance, and Innovation.

As a non-profit organization located in Brussels and founded in July 2018 in Paris, the WAIFC represents the top nineteen global financial centers across four continents that promote and share best practices in the field of finance with a varied scope of activities and benefit from the collective strength of its members. The alliance as city governments and other financial institutions also facilitates cooperation amongst the group members and interaction with the general public besides developing and promoting their financial Centres.

As a member of WAIFC, DIFC as the highest-ranked financial center in the MEASA region will now collaborate with other leading global financial centers in Tokyo, London, Paris, Frankfurt, Toronto, and in many other countries on global best practices some of which are already entered into memorandums of understanding with DIFC.

DIFC with the vision to drive the future of finance is focused on embracing new and innovative technologies in the field of finance and aims for achieving sustainable economic and social goals including Environmental protection.

“We are very pleased to have DIFC join our association. Dubai is a leading global financial center, and DIFC will undoubtedly bring a valued contribution to our initiatives. We are very much looking forward to working with the colleagues in Dubai,” remarked Jennifer Reynolds, the Chairwoman of the WAIFC.

CEO of DIFC Authority, Arif Amiri highlighted: “DIFC is pleased to be joining the World Alliance of International Financial Centres. The Centre is looking forward to representing Dubai and building partnerships with other members so we can be a collective force for good. Together we can make progress in areas such as FinTech, innovation, sustainable finance, and developing digital economies. We can align our approaches which will allow us to cohesively drive the future of finance.”

Dr. Jochen Biedermann, Managing Director of the WAIFC, added: “DIFC has been an observer to WAIFC since last year, and we are delighted that it will join WAIFC as a full member now. DIFC has had a phenomenal development in less than twenty years from its first steps to one of the world’s leading financial centers. We are very much looking forward to exchanging best practices and learning from each other.”

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC with his able leadership taken DIFC to the pinnacle of its performance during 2020 amidst global economic uncertainty caused by the pandemic and elevated the country’s status as a pivotal global economic destination with many businesses reporting exponential growth, including capital markets, asset management, FinTech, professional services, and banking aided by a conducive FinTech and venture capital environments, cost-effective licensing and easy DIFC management startup license, flexible regulation, innovative promotional events, and easy access to funds for start-ups.

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