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Digital Sky is Overcast with Multi-Clouds Now
  • Newsletter

Digital Sky is Overcast with Multi-Clouds Now

Of late, a multi-cloud strategy has become the leading option for business entities as the survey found an increase in usage of approximately 15 percent between 2019 and 2020 mostly fueled by covid 19 pandemics. Multi-cloud is composed of more than one cloud platform including public, private, and hybrid clouds. Independent of any single cloud platform, a multi-cloud platform offers increased flexibility, reduced cost, enhanced scalability, and many other advantages. There also remain some cons that need to be addressed before switching over to multi-cloud such as increased training needs of personnel, reduced interoperability between applications and services, non-availability of many skilled professionals, increased operational hiccups, logistical complications, etc. However, the benefits far outweigh the cons.

What are the Pros and Cons of a Multi-Cloud Platform?

A quick look into the benefits of multi-cloud platforms often justify its enhanced usage by business entities and the most common benefits are

  • Continuous Availability with little or no possibility of a service break down if one cloud goes down a business can be functional on other deployed clouds
  • Flexibility and freedom of choice of platforms and solutions best suitable for your business needs
  • Empowering customers to negotiate on price with ample visibility on cost and benefits
  • Faster speed and better network performance with service providers having data centers closer to your locations
  • Improved scalability based on business demands and extent of usage
  • Quick innovation due to increased access to a wide range of tools and choosing clouds providing the best sets of services
  • Better prevention of DDoS attacks as data is stored on different platforms
  • Mitigating shadow IT as individual departments have accessibility to solutions as per their needs and without any need to bypass IT department


Though investing in a Multi-Cloud solution is usually a smart and beneficial investment strategy, it also comes with its fair share of challenges as

  • Increased management complexities arising out of vendor-specific monitoring consoles and cloud architectures
  • Increased remuneration and short supply of skilled professionals including architects, developers and testers and, administrators
  • Multiple factors influencing billing and pricing for increased issues with cost analysis and reporting
  • Security issues as a multi-cloud environment are more difficult to secure with several aspects to consider including encryption key, SS/TLS encryption, secrecy management, access controls, etc.
  • Compliance issues as vendors can have non-standard models
  • Complexities in the integration of individual SaaS solutions and reduced interoperability


What are the benefits of Cloud Accounting?

As flexibility is the essence of today’s business, we should be able to manage business operations independently of a central setting. Cloud Accounting and Bookkeeping Services offer us this advantage with several other benefits as mentioned below

  • Ease of accessibility from anywhere and anytime
  • Automated accounting tasks
  • Real-time accounting data with better accuracy
  • Ability to coordinate and collaborate even when physically distanced
  • Improved data security


Strong platform features are indispensable while you choose a remote accounting platform and must-have functions that can enable you to communicate, update and share accounting data, secure information, and manage operations.

Cloud accounting platform Zoho is equipped with tools that enable remote working with several additional features and Zoho Implementation partners can identify, customize, integrate and implement the right set of Zoho tools to effectively address every business needs.

What are Multi-Cloud Models?

Multiple clouds provide strategic services to meet specific business and technical needs and are primarily classed as Software-as-a-service, or SaaS, Infrastructure-as-a-service, or IaaS and Platform-as-a-service, or PaaS.

There are many players in the multi-cloud market segment and deployments can either be a blend of public plus public or public plus private clouds. There can be different models based on business functions running on different platforms such as production running on on-premise infrastructure and development running on a public cloud. In a separate model, a single business function can run simultaneously on a multi-cloud.

What is the Future Outlook of Multi-Cloud Systems?

Multi-cloud environments are going to stay and flourish with time due to cost optimization, operational ease, and increased effectiveness. Cost optimization tools are also coming to the market for analyzing processes to maximize cost savings.

As per global surveys and market research in 2021, the multi-cloud management market is all set to expand at a CAGR of more than 25 percent between 2020 and 2026.

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Saudi Arabia is All Set to Introduce E-Invoicing
  • Newsletter, Saudi Arabia

Saudi Arabia is All Set to Introduce E-Invoicing

A draft resolution detailing the technical and functional implementation guidelines of E-invoicing has been released on 18th March 2021 by Saudi Arabia’s General Authority of Zakat and Tax (GAZT) as an addendum of earlier released regulations published during December last year.

The E-invoicing implementation has been planned in two phases, the first one going live on 4th December 2021 followed by the second phase that would go live on 1st June 2022 GAZT has also announced that all businesses may not be needed to comply with the requirements by 1st June 2022 and the details will be published as a separate resolution afterward.

Unlike a handwritten or scanned invoice, an electronic invoice is generated, stored, and amended in a structured electronic format through an electronic solution that includes all the requirements of a tax invoice. Credit and Debit Notes issued in an Electronic format, as a result of amendments conducted in the Electronic Invoice are called electronic notes and don’t include photocopied or scanned paper notes.

E-invoicing will be used for VAT purposes and will apply to all taxable persons excepting the non-resident taxable persons and any other party issuing tax invoices on behalf of a supplier subject to VAT. Exempt supplies and imports of goods and services subject to Reverse Charge Mechanism (RCM) are excluded from E-invoicing requirements

The contents of an electronic invoice will have all Terms, requirements, and conditions applicable to tax invoices as per Article (53) of the VAT Implementing Regulation. All applicable provisions of tax invoices will apply to Electronic Invoices, including the rules of storage of tax invoices stipulated in the VAT legislation, and specifically, Article (66) of the VAT Implementing Regulation.

For simplified e-invoices and notes, a Quick Response (QR) code of a Base64 format with up to 500 characters must be generated and printed on simplified e-invoices and E-notes. Additionally, controls/mechanisms should be implemented to avoid tampering of the e-invoices.

The e-invoice and E-notes must be issued in XML or PDF format and shall generate a universally unique identifier. For simplified e-invoices and E-notes, businesses will need a cryptographic stamp to be included on the electronic invoices or notes.

The details regarding implementation timelines, targeted groups, and specifications for generation, storage and integration including approved external provider details for E-invoice Generation Solutions will be issued by the GAZT at a later date.

The implementation of Electronic Invoicing will have two phases and will include two specifications

  • Phase one is for the generation and keeping of tax invoices and electronic notes in a structured electronic format issued through an electronic solution that combines all the requirements of tax invoices.
  • Phase two is the Integration of the electronic solution of taxable persons used for generating electronic invoices and notes with the system of GAZT for data sharing.


The Kingdom of Saudi Arabia has planned to introduce e-invoicing as a step towards global best practices aiming for increased compliance with tax obligations, better consumer protection, and fair business competition.

As E- invoicing is made mandatory, businesses that need to issue E-invoices and/or E-notes as per E-invoicing Regulations must make themselves aware of necessary requirements.

All businesses must carry out an initial gap analysis for evaluating if their existing system and technical specifications of E-invoicing complies with the draft resolution requirements.

GAZT also welcomed public comments that can be shared till 17 April 2021 allowing taxpayers and E-invoicing service providers including advisors and other interested parties to comment on the draft resolution.

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Oman VAT Executive Regulation – Important Highlights
  • Newsletter, Oman

Oman VAT Executive Regulation – Important Highlights

On 14th March 2021, the much-awaited Executive Regulations of Value Added Tax (VAT) was issued by the Head of Oman Tax Authority (OTA), His Excellency Saud bin Nasser Al Shukaili vide Ministerial Decision 53/2021. Oman’s Official Gazette no. 1383 published the regulations with guidelines for implementation. The VAT system in Oman will come into force on 6th April 2021 and the Sultanate is going to join the other three GCC member states viz the UAE, Saudi Arabia, and Bahrain to introduce the levy.

VAT is being introduced in Oman keeping in perspective of the county’s ‘Oman Vision 2040’ initiative that stipulates the roadmap to diversify the oil-based economy to non-oil sectors including logistics, manufacturing, and tourism.


Online Registration for VAT

Only those holding a “commercial registration number” (CRN) can register for VAT through the online portal of OTA. The necessary forms and guidelines for registration were provided after OTA decided to implement a staggered registration schedule for those requiring VAT registration.

The schedule is staggered based on the income and businesses with an annual turnover of more than OMR 1 million can apply for VAT registration till the time it goes live. The upcoming registration schedule for income exceeding OMR 500,000 is likely to commence on 1st April and last till 31st May 2021.


Important Highlights of VAT Executive Regulations

The Executive Regulations provide ample clarity on most of the significant areas that were debated, discussed, and exhaustively studied over a long period considering social and economic impacts and clarify the applicability, rules, and procedures of the VAT Law including supplies, supply provisions, administrative matters, and penalties, tax points during transactions, VAT for online services, value assessment of supplies, exemption, and tax adjustments, totally exempted supplies, applicability in special economic zones, customs duty waiver, registration, de-registration, requirements of documentation, tax filing and invoicing, VAT returns, etc.

It is important for businesses to clearly understand the regulations that provide guidelines on the scope and extent of VAT exemptions and zero-rating. Businesses operating in areas that are exempted or zero-rated must be aware of the proper scope and applicability of such exemptions and zero-rating for their business activities and benefit from it.

Companies qualifying for VAT must also know other aspects of how VAT will affect their businesses and accordingly formulate appropriate plans and strategies for VAT compliance from the very first day. Some of the vital regulations are listed below:


Scope and Applicability of VAT


1. VAT Exempt Categories

The Sultanate of Oman has planned to levy VAT at the standard rate of 5 percent on most goods and services. The country, however, has announced some exceptions for essential food items, medical care, education, and financial services which will be exempt from VAT. According to OTA some 94 food items have been kept away from the VAT list including milk, meat, fish, poultry, fresh eggs, vegetables and fruits, coffee and tea, olive oil, sugar, nutritional products for children, bread, bottled drinking water, and salt to name a few.


2. VAT-Zero-Rated Categories

A zero-rated good doesn’t attract VAT owing to its social importance as a necessity. The sale of zero-rated goods is not taxed and credits are given on VAT paid on inputs. Any company engaged in dealing in zero-rated supplies is not included in the mandatory requirement of VAT registration.

Zero-rate or no VAT is imposed in Oman on essential commodities such as education and healthcare.

Businesses related to oil and gas; certain food items; cargo and passengers in global trade, some precious metals like gold, platinum, and silver; some life-saving medicines, medical equipment, and import and export of items can qualify for zero-rated VAT in Oman.


3.VAT-Other Categories

Besides the VAT exempt and zero-rated categories, some other categories classed as essential services also enjoy VAT exemption including financial services, reselling and renting of residential buildings, healthcare services and related goods and services, educational services, local passenger transportation services, import of goods to countries where there is no VAT and any return of imported items, goods, and services for military forces, supplies for no profit and charitable organizations, etc.

Commodities given free of charge such as any sample for business promotions will only attract VAT if the value exceeds either OMR 50 per person or OMR 1,000 in a year collectively and beyond these values, the commodities will be treated as deemed supplies and VAT will be levied on those.


Pre-Registration Input Claim of VAT

Per Executive Regulation Article 73, any input tax incurred before the registration can be claimed within 3 years maximum and article 74 says that the input tax incurred before registration for supplies of services can be claimed within 6 months maximum.

OTA must be informed within 30 days of registration for submitting a claim. For a tax claim valuing more than OMR 50,000 for goods stored as stocks, the audited stock list must be submitted to OTA for a claim.


Compliance of VAT

The Executive Regulations are mandated by the Omani Government stipulating certain compliance requirements which need to be compulsorily adhered to by an individual or company qualifying for VAT as per the regulations. Not complying with the stated compliance requirements may attract penalties as specified under the Executive Regulations.


Tax Invoicing of VAT

The executive regulations mandate the preparation and issuance of proper tax invoices for every single taxable supply including a deemed supply and against receipt of advance. The tax invoice should have all information prescribed by the OTA such as serial no, date of supply and receipt of payments, description and quantity of goods, details of customers and sellers, etc.

There is also a provision for a simplified tax invoice with less information than that in a complete tax invoice and is subject to prior conditional approval of the OTA that is usually received within 15 days from the date of application. A simplified Tax Invoice Format is mentioned in article 147 of the Executive Regulation with mandatory inclusion of the phrase “Simplified Tax Invoice” on it.


Tax Period and Return Filing of VAT

The taxpayers will need to file their returns every quarter starting from 1st January to 31st December of any calendar year. The VAT returns need to be filed online through a government portal and in the format specified by the OTA. The tax return along with the payment of the VAT must be done within 30 days from the end of a specific quarter.


Claim and Refund of VAT

The Executive Regulations demand all VAT claims to be submitted in a prescribed claim application format designed by OTA with specific information of VAT refund claimed, the reason for the refund including the tax period for which the VAT claim applies. All claims of refund must be submitted to the area authority within a maximum of five years from the end of the tax period for which it is due.

The VAT return can be claimed under the following conditions.

  • If an extra VAT amount is paid then the due amount
  • If VAT is paid by a non-resident of Oman
  • If the VAT is paid by a foreign government or military or diplomatic officials
  • If VAT is paid by foreign travelers while purchasing personal goods in Oman and not in commercial quantity and for carrying with them
  • Refunds arising out of changes in the regulations and as announced by the OTA through Executive decisions from time to time

Services under the Reverse Charge Mechanism (RCM) of VAT

As per article 151 of Executive Regulation concerning imported goods or services, the taxpayer is responsible for recording the RCM. Unlike forward charging, a Tax invoice must be issued to self with RCM VAT in his favor if the supplier is a foreign resident and not registered with the OTA for paying the VAT.


Maintaining Records of VAT

The Executive Regulations specify the records to be maintained by the taxpayers including but not limited to the following.

  • Details of day to day transactions in chronological order.
  • Details of Inventory with inventory levels, items name, and types on a regular periodic basis.
  • Details of supplies of imported and exported goods and services.
  • Details of supplies of goods and services from GCC countries.
  • Details of all Customs related transactions.
  • All tax invoices including supporting documents issued by the taxpayers.
  • All tax invoices and supporting documents received by the taxpayers.
  • Records of information for validation of appropriateness of individual tax treatment.


Appeals for Tax Treatment of VAT

The Executive Regulations describe the method for putting an appeal before the OTA and in connection with the tax assessment or adjustment or any decision for VAT registration by the OTA. All appeals to the OTA need to be submitted in the Arabic language.


Penalties for Non-Compliance of VAT Regulations

Penalties amounting to OMR 500 to 5,000 are imposed for certain non-compliance such as

  • Delay in submitting compulsory VAT returns
  • The VAT registration certificate is not displayed properly and not visible to everybody
  • Record keeping, accounting records and books, and necessary documentation are not maintained as per the specified requirements.

Some non-compliance can attract higher penalties and maybe as high as OMR 10,000 which are

  • Inappropriate refund claims not supported by authentic records and documents.
  • Non-submission of registration cancellation request when compulsory by the regulations.
  • Incorrect recovery of VAT and knowingly.
  • Inappropriate processing of VAT inclusive goods and services.

Residential Areas Inclusive of VAT

Article 83 of Executive Regulations stipulates that hotel apartments, ungrounded structures, any place providing bed and breakfast, any tourist complex don’t come under the purview of residential buildings and are subject to usual VAT rates under rules of taxable supplies.


Agent of a Company

Article 19 of Executive Regulation makes it mandatory for any company acting as an agent and working in the name and representing the principal, the agent company must notify the Tax Authority about such arrangement by submitting a power of attorney and including this in its regular scope of activity. The details of principal and beneficiary must also be documented on all the records such as invoices and contracts. The agent must mention a disclaimer on all documents that he is performing all activities on behalf of the principal.

Though enough clarifications are provided in the VAT Executive Regulations, there are still areas needing further clarity. However, the articles specified in the Executive Regulations make it clear that the Tax Authority will be strict and vigilant on the actions of the taxable person. Adherence to these regulations is the key essence as evident in each article.

The introduction of VAT will surely help the country in generating an extra revenue stream though businesses dealing with capital goods may find the market and demand slightly subdued initially. As essential items are mostly kept out of the domain of VAT, it will not put much burden on common Omani citizens.

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Singapore Enters into Digital Economy Partnership Act (DEPA) With New Zealand And Chile
  • Newsletter, Singapore

Singapore Enters into Digital Economy Partnership Act (DEPA) With New Zealand And Chile

Singapore’s Digital Economy Partnership Agreement (DEPA) with New Zealand and Chile came into effect on January 7, 2021.

DEPA is a digital-only trade agreement, which aims to establish new ways and collaborations in digital trade issues, promote interoperability of different countries and address new issues caused by digitalization.

First signed in June last year, DEPA is the world’s first of its kind digital trade agreement that establishes a common set of digital trade rules and digital economy collaborations for the removal of digital barriers, fostering a new form of economic engagement especially at a time when many business activities have gone online.

Singapore has been aiming to build on its network of digital cooperation agreements and international frameworks to support businesses and SMEs engaging in cross-border digital trade and e-commerce. Additionally, DEPA will encourage greater cooperation in newly developed areas such as artificial intelligence and provide organizations the capacity to try new technologies across different countries with lower operating costs and better data protection.

Besides this year’s DEPA with New Zealand and Chile, Singapore has also signed DEPA with Australia through the Singapore-Australia Digital Economy Agreement (SADEA), in December 2020. The country is also in exploratory talks with South Korea and the UK to develop a similar bilateral Digital Partnership Agreement.

The Government of Singapore’s DEPA initiatives is in pursuit of further strengthening its footprint as a global leader in technology and e-commerce including the promotion of the country’s extensive free trade agreement (FTA) network for Singapore company formation by foreign investors.

Key Features and Benefits of DEPA

DEPA will establish new and innovative ways to digital trade issues that will help foreign business owners lower the costs of their operations and improve market access with the added advantage for Singapore company incorporation.

Paperless trade

A key feature of DEPA is that it will encourage paperless trade and reduce document transit and cargo clearance time improving business effectiveness.

An exporter in Singapore can easily apply for an e-certificate of origin with an electronic SPS certification for onward transfer to the customs of the destination country.

Paper trades drastically reduce the cost competitiveness and operational efficiency due to the cost of papers and higher waiting time.

Fintech and e-payments

DEPA advocates greater acceptance of payments due to increased interoperability between different payment systems enabling cross-border payments much easier for NBFCs such as fintech firms.

It was in early December last year when Singapore issued its first digital banking license enabling non-bank entities to offer similar services as conventional banks.

Electronic invoicing

DEPA will ensure e-invoices in Singapore are recognized in Chile and New Zealand for shorter invoice processing time, faster payments, and cost savings by embracing similar e-invoicing standards.

Pan-European Public Procurement On-Line (PEPPOL) e-invoicing solutions will also be available in Singapore SMEs.

Digital identities

DEPA will enable countries to develop safe and secure mutually recognizable digital identities that can streamline many business processes such as opening a bank account, registering a company, etc.

Partners within DEPA can facilitate initiatives that promote the compatibility of different digital identity regimes. In doing so, procedures such as Know-Your-Client (KYC) checks by banks can be done more efficiently and in any DEPA partner country, since the bank only requires the company’s digital identity. This due diligence process currently can take over three months to complete.

Data innovation and artificial intelligence

Parties in DEPA will allow data to flow freely across borders which, in turn, facilitates a conducive environment for businesses to develop new products and services from data-driven innovations.

This includes the use of AI for which there will be the adoption of an ethical AI governance framework. This will ensure that DEPA partner countries responsibly harness AI.

Furthermore, this digital agreement means businesses can pilot and commercialize their data-driven products and services with overseas counterparts from DEPA, therefore accelerating cross-border innovation.

Personal data protection

DEPA will ensure greater personal data protection during the transfer of data across borders by developing mechanisms based on international frameworks.

Business organizations in Singapore can now opt for Asia Pacific Economic Cooperation Cross Border Privacy Rules (APEC CBPR) certification and once certified, can demonstrate the company’s strong data protection and security policies consistent with the APEC Privacy norms.

Besides, the CBPR certified companies can exchange data with other certified companies in Singapore’s DEA network, as well as with other regimes which are already certified as per APEC CBPR System.

DEPA will build trust in digital systems facilitating opportunities for participation in the digital economy and promoting the adoption of AI governance framework and responsibly utilizing AI.

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Amendment in Citizenship Law will Attract More Investment and Talent to The United Arab Emirates
  • Newsletter, U.A.E

Amendment in Citizenship Law will Attract More Investment and Talent to The United Arab Emirates (UAE)

The UAE announced on Saturday, January 30 2021 about the amendment of the country’s citizenship laws granting citizenship status to investors and expatriates for the first time, a move that could potentially benefit the UAE with more foreign investment and new business setup in Dubai. Additionally, the move will mean quality human capital for the country.

The Prime Minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum, also the ruler of Dubai, said “the new measures were aimed at attracting skilled professionals and their families to help in the development of the emirates.”

“We adopted law amendments that allow granting the UAE citizenship to investors, specialized talents & professionals including scientists, doctors, engineers, artists, authors, and their families. The new directives aim to attract talents that contribute to our development journey,” he added.

The nomination and approval rights for qualifying the eligibility of such citizenship will lie with the UAE cabinet, local emiri or rulers’ courts, and executive councils of the seven emirates under clear criteria set for each category. The law will allow those qualified and provided with UAE passports to “keep their existing citizenship”, he added.

The changes to the law on nationality and passports, in effect, will allow expatriates to become dual citizens and for the first time in history for any of the Middle East nations. The UAE has also become one of the few countries in West Asia to grant citizenship to expatriates, who form a large chunk of the population in the region.

The UAE alone is home to millions of foreigners, one of the largest concentrations of expatriates in the Middle East and other parts of West Asia. It is believed that this citizenship amendment act along with the recent Abraham Accord and normalization of diplomatic and economic ties with Israel will witness increased FDI pouring into the UAE with many new Dubai company incorporation as well as many new businesses in other parts of the Emirates.

The categories that can qualify to acquire UAE nationality include.

  • Investors
  • Specialists
  • Families, spouses, and children
  • Doctors
  • Scientists
  • Artists
  • Inventors
  • Talents
  • Intellectuals


Granting of citizenship will be through nominations from the courts of rulers and crown princes, executive councils of the seven emirates, and the cabinet and will be based on nominations received from federal entities.

The UAE cabinet declared the changes in line with an order received from President Sheikh Khalifa bin Zayed Al Nahyan to attract and retain individuals with specialized skills and innovative minds.

The amendments laid down certain criteria and conditions to be fulfilled by each of the above categories before granting UAE citizenship.

Doctors and specialists must be specialized in a unique scientific discipline or any other scientific principles that are highly required in the UAE and have acknowledged scientific contributions, studies, and research of scientific value and practical experience of not less than 10 years, in addition to obtaining membership of a reputable organization in his/her field of specialization.

Scientists are required to be active researchers at a university, research center, or in the private sector, with practical experience of not less than 10 years. They should have contributions in their field, such as winning a prestigious award or securing substantial funding for research in the past 10 years. It is also mandatory to obtain a recommendation letter from any recognized scientific institution in the UAE.

Investors must own a property in the UAE

Inventors need to obtain one or more patents approved by the UAE’s ministry of economy or any reputable international body, in addition to a recommendation letter from the Economy Ministry.

Persons with creative talents, such as intellectuals and artists, should be pioneers in culture and arts and winners of one or more international awards. A recommendation letter from related government entities is mandatory as well.

If some expatriates qualify then before acquiring citizenship, the expatriates must swear an oath of allegiance, commit to abide by local laws, and inform authorities in case they acquire or lose any other citizenship.

UAE citizenship offers a range of benefits, including the right to establish or own commercial entities and properties, and any other benefits coming into effect from federal authorities.

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India Enters into Defence and Trade Agreements with Mauritius and Extends 100 Million USD Credit
  • India, Newsletter

India Enters into Defence and Trade Agreements with Mauritius and Extends 100 Million USD Credit

In a significant development and approved by the union cabinet, India recently entered into a USD 100 million Defence Line of Credit agreement with Mauritius, the first such pact with an African country as a part of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) also called Foreign Trade Agreement (FTA)during a visit by External Affairs Minister S. Jaishankar during his visit to Mauritius.

“Privileged to witness along with Prime Minister Pravind Kumar Jugnauth the signing of Comprehensive Economic Cooperation and Partnership Agreement, India’s first such agreement with an African country. This will help focus on post-pandemic economic recovery and enable business expansion and greater investments,” Mr. Jaishankar said to the media after signing the agreement.

The new framework under the CECPA will allow India a greater entry for Indian goods into the African continent especially for several items including surgical equipment, medicine, and textile products.

A limited agreement by nature, CECPA will cover trade in Goods, Trade in Services, Rules of origin, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Financial Services, Customs Procedures, and Cooperation in other areas. This will also include 310 export items for India such as foodstuff and beverages, agricultural products, base metals and articles, electrical and electronic items, plastics and chemicals, wood, etc.

“Just to illustrate some of the benefits, Mauritius will get preferential access for export of 40,000 tonnes of sugar into India early frame,” highlighted Mr. Jaishankar. Mauritius will also receive preferential access for the export of 7.5 million pieces of apparel in addition to other 615 products such as frozen fish, specialty sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment.

A $100 million Defence Line of Credit for Mauritius was also announced. This would “enable the procurement of defense assets from India” according to the requirements of the country which was emerging as an important maritime entity in the Indo-Pacific region. “These initiatives underline once again that the security of Mauritius is the security of India; in the prosperity of Mauritius is our prosperity,” Mr. Jaishankar remarked adding that Mauritius would get a Dornier aircraft and an Advanced Light Helicopter Dhruv on a lease that would help strengthen its maritime security capabilities.     

Mr. Jugnauth emphasized that the agreements signed between the two countries would “consolidate the strong ties” between India and Mauritius further and promote foreign direct investment of Mauritius and new Mauritian company formation in India. Notably, during April September 2020, Mauritius ranked 4th in foreign direct investment in India.

The Chagos Archipelago dispute also came up during the discussion, which was an issue of sovereignty and sustainable development before the United Nations. In 2019, India voted for Mauritius at the U.N. General Assembly on this issue. India was amongst the 116 countries that demanded that the U.K. end its “colonial administration” from the archipelago.

“I assured the Prime Minister of India’s steadfast principled support on this issue as has been demonstrated in the past,” noted Mr. Jaishankar.

Me. Jaishankar also reaffirmed India’s medical support to Mauritius in the aftermath of the covid pandemic supported by the recent delivery of 100,000 Covishield vaccines to the African nation. Covid vaccine supply was a “clear and telling demonstration” of the strong bilateral relationship between the two countries, he remarked.

India’s External Affairs Minister also reviewed the status and progress of the India-assisted development projects in Mauritius and invited Mr. Jugnauth for a visit to India.

About business and investment in the services sector, Indian service providers will have access to around 115 sub-sectors from the 11 broad service sectors including computer-related services, research & development, telecommunication, construction, financial, tourism & travel, entertainment, transport, professional services, etc.

India too offered approximately 95 sub-sectors from the 11 broad services sectors, including professional services, R&D, and other business services, and invited Mauritius investors for setting up a company in India.

Both sides have also reached an agreement for an Automatic Trigger Safeguard Mechanism (ATSM) for negotiating on a limited number of highly sensitive products within two years.

India Mauritius bilateral relationship is deep-rooted supported by historic cultural affinities, regular and frequent high-level political interactions, development cooperation, defense and maritime partnership, and people-to-people connection.

Mauritius being an important development partner, India had extended a ‘Special Economic Package’ of USD 353 million to Mauritius in 2016.

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Oman Amends Foreigners’ Residence Rule by Abolishing No Objection Certificate (NOC) Requirement for Foreign Workers
  • Newsletter, Oman

Oman Amends Foreigners’ Residence Rule by Abolishing No Objection Certificate (NOC) Requirement for Foreign Workers

The recent amendment in Oman’s labor laws can be seen as a Government effort to reduce the rights gap between expatriates and locals and this amendment of Foreigners’ Residence Law now enables expatriate workers to transfer jobs without seeking prior approval from their employer; reported a local daily Times of Oman in its press briefing.

The amendment abolished the “No Objection Certificate” (NOC) requirement which, as per the Oman Human Rights Commission, will increase competitiveness between Omani and expatriate workers. This amendment at the same time will also offer protection to low-income families.

The requirement for expatriate workers to obtain a NOC from their current employers to join another company was in force since 2014 under the law of residence for foreigners in Oman. The law required that if a foreigner didn’t secure the NOC from the current employer, the employee was banned from working for any other employee for two years.

The new decision will now enable the foreign employees to switch over to new jobs depending entirely on the lapse of existing work contracts.

The commission added that the decision was also expected to reduce the number of foreign workers leaving the country, who do so because they fail to get NOCs. “The decision will also contribute to reducing the cases of non-Omani labor absconding, especially those who are denied a NOC, thus forcing the worker to stay outside the country after the expiry of his contract,” the commission said in its annual report.

As highlighted by the Times of Oman, the recent amendment is also expected to reduce the gap in wages between local and foreign workers.

“All these legislative and legal amendments, which came in response to the current circumstances, will undoubtedly have a more positive impact on protecting the rights of citizens and residents,” the Oman Human Rights Commission reported.

The policy on Labor Reform was also initiated by Saudi Arabia in November last year mentioning the exceptional situations under which foreign workers were allowed to move to a new job without the prior consent of their present employer.

The scrapping of NOC requirements in Oman can be considered as a significant development in labor laws as this will have a profound impact on the Omani labor market providing much-needed flexibility in changing jobs within the country and foreign workers will find Oman to be more attractive in absence of restrictions.

As Oman continues to attract more foreign talents, many foreign investors are likely to be lured for investments and new company formation in Oman.

Besides labor reforms, digital transformation is also fast happening in Oman and across several ministries and Oman’s fiscal plan announced in November last year also included a number of reforms signalling that business setup in Oman will continue to be easier in post-pandemic time.

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Qiddiya Investment Company (QIC) And The General Authority of Small and Medium Enterprises (Monsha’at) Sign Two Memoranda of Understanding to Support Local SMEs in Saudi Arabia
  • Newsletter, Saudi Arabia

Qiddiya Investment Company (QIC) And The General Authority of Small and Medium Enterprises (Monsha’at) Sign Two Memoranda of Understanding to Support Local SMEs in Saudi Arabia

Qiddiya Investment Company (QIC) and the General Authority for Small and Medium Enterprises (Monshaat) in the Kingdom of Saudi Arabia came into an agreement and signed two memoranda of understanding (MoUs).

The agreements are intended to enhance bilateral cooperation between the two entities and provide QIC with access to the “Jadeer” portal, the database of local SMEs, and develop Qiddiya as a destination that provides an open and supportive business environment for SMEs.

Philippe Gas, the CEO of QIC noted, “These two MoUs reflect our continuous effort to enhance cooperation and strategic partnerships with local entities involved in national transformation, in line with the ambitions of Saudi Vision 2030.”

Gas also emphasized, “These MoUs mean that local SMEs will be able to easily access information about the Qiddiya project and the numerous opportunities available in QIC.”

The comments were made after the deal with Monsha’at Governor Saleh bin Ibrahim Al Rasheed was signed off by Philippe Gas of QIC.

Governor of Monshaat Eng. Saleh bin Ibrahim Al-Rasheed remarked, “These MoUs highlight Monshaat’s keenness to enhance cooperation with the public and private sectors and to create an environment that stimulates the growth and prosperity of small and medium-sized enterprises.”

He stressed, “It will help to increase competitiveness and will contribute to the development of local entities by boosting and developing the standard of SMEs in the Kingdom.”

“It will also support them to reach the opportunities provided by the public and private sectors, including those offered by QIC”, the Governor also highlighted.

Under the first MoU, QIC will provide Monshaat with commercial opportunities across the key sectors of hospitality, tourism, and entertainment encompassing all areas of the business such as contracting, supply, logistics, IT, maintenance, public services, and many more.

Certain conditions will need to be fulfilled by service providers, that will help Monshaat to rehabilitate SMEs and formulate policies, standards, and strategies to raise the productivity of these enterprises and increase their contribution to the GDP.

This will eventually enhance the contribution of local entities to the major projects which are presently being implemented in the Kingdom and are in the pipeline for implementation after their company registration in Saudi Arabia.

Monshaat will help QIC build its innovation center that would benefit from Monshaat’s experience in this field and will also give QIC access to its research facilities and centers.

Moreover, Monshaat will provide access to Qiddiya of statistical information to be used in developing Qiddiya’s various project sectors.

The second MoU will give Qiddiya access to Monsha’at’s “Jadeer” portal, a database of SMEs operating in the Kingdom of Saudi Arabia and categorized by sector including a list of emerging companies that benefit from business incubators.

This access to the digital and research facilities of Monsha’at will give Qiddiya easier communication between QIC and other entities in sectors where there exist opportunities for collaboration and will also improve the decision-making process for the QIC and make it an attractive environment for SMEs and emerging companies.

This initiative comes as an important recognition of Saudi Arabia’s broader economic and social outlook focusing on boosting SMEs to a level that they can contribute significantly to Saudi gross domestic product by 2030 through meaningful business collaboration with foreign entities aspiring for new business setup in Saudi Arabia.

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UAE-ADNEC and Expo Tel Aviv Sign Strategic Memorandum of Understanding (MOU) for Enhancing Business and Investment Opportunities
  • Newsletter, U.A.E

UAE-ADNEC and Expo Tel Aviv Sign Strategic Memorandum of Understanding (MOU) for Enhancing Business and Investment Opportunities

Abu Dhabi National Exhibitions Company (ADNEC) and Expo Tel Aviv, the leading exhibition center of Israel, enters into partnership to encourage and promote further collaboration and cooperation in the business of travel and tourism sector in the region. The MOU signed will help in identifying and capitalizing on the business opportunities for the Middle East’s business tourism sector and will facilitate new business setup in Abu Dhabi.

The Memorandum of Understanding (MoU) signed between the two leading exhibition centers will forge a relationship and enhance their respective new business pipelines and increase opportunities for collaboration at both venues as reported by the state news agency.

The MoU demonstrates the greater spirit of cooperation between the United Arab Emirates (UAE) and Israel. The agreement was signed at a virtual signing ceremony between Humaid Matar Al Dhaheri, Managing Director and Group CEO of ADNEC, and Tamir Dayan, CEO of Expo Tel Aviv.

Humaid Al Dhaheri in his comments about the agreement added, “Our relationship with Expo Tel Aviv will enable the wider growth of the business tourism sector in the UAE and wider region, which ADNEC consistently seeks to promote. This strategic partnership showcases ADNEC’s efforts in fostering intraregional cooperation and will offer new developments for the transfer of knowledge to local audiences. Through this partnership, we aim to foster innovation and business opportunities between our two nations.”

Al Dhaheri remarked, “Additionally, this partnership will continue to boost ADNEC’s leading status as a key destination for business tourism. Our efforts to identify opportunities for collaboration with a range of regional and global partners are ongoing, strengthening the Middle East’s and the world’s business tourism sector.”

Tamir Dayan of Expo Tel Aviv remarked, “The Abu Dhabi National Exhibitions Company and Expo Tel Aviv provide models for regional leadership in the business tourism sector. Our mutual expertise in the design, delivery, and execution of world-class events makes us natural partners. Israel and The Emirates will probably be the first countries in the world to be vaccinated against the coronavirus and lead the exhibitions industry forward and now through this MoU, we are aiming to foster our cooperation, providing further opportunities for the transfer of knowledge and expertise between our two entities. My colleagues and I look forward to working with our Emirati partners in identifying and capitalizing on new opportunities for the Middle East’s business tourism sector, and welcoming new visitors from the UAE and beyond in Tel Aviv.”

ADNEC is committed to encouraging and promoting regional collaboration in the business tourism and events sector in the region, which is evident from a range of agreements and partnerships that have been signed with other countries in the Middle East. The continued focus of ADNEC on encouraging and exploring the greater outreach opportunities with event organizers and associations in Israel at the backdrop of the historic signing of the Abraham Accords in 2020 will provide new opportunities for pan-regional collaboration and cooperation including Israeli foreign investments by encouraging business entities to explore how to start business in Abu Dhabi Global Market.

Municipally owned Expo Tel Aviv is the leading and foremost international convention center in Israel’s leading and center city of an economy, commerce, culture, and media. The center hosts approximately 400 events every year that include both local and international conventions and exhibitions, along with events, fairs, and shows. Founded in 1933, the Expo Tel Aviv International Convention Centre houses eight pavilions and 20 conference halls, 45,000 sqm of exhibition and conference space. A 400 room hotel is also currently being developed. Expo Tel Aviv attracts over 3 million visitors each year and also hosted and broadcasted the 2019 Eurovision Contest to 200 million viewers across the globe.

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In A Significant Move, The “AL-ULA DECLARATION” Opens Borders and Resumes Trade Between Qatar and Other GCC Countries
  • Newsletter

In A Significant Move, The “AL-ULA DECLARATION” Opens Borders and Resumes Trade Between Qatar and Other GCC Countries

On 5 January 2021, in a landmark declaration and signing of ‘solidarity and stability’ agreement during the 41st GCC Summit held in the city of Al-Ula; the UAE, Saudi Arabia, Bahrain, and the rest of the Gulf Cooperation Council (GCC) member states, including Egypt, signed the “Al-Ula Declaration” of ‘solidarity and stability’ marking the end of a three and a half year trade and diplomatic restrictions against the State of Qatar, severed on 5th of June 2017.

Although the “Al-Ula Declaration” has not been formally made public, re-establishment of political and economic ties between Qatar and other GCC countries including the UAE, Saudi Arabia, Bahrain, and Egypt has been made amply clear through the public statements made by senior Saudi, UAE, Egyptian, Bahraini and Kuwaiti officials.

Restoration of diplomatic ties with Qatar has led to the reopening of Qatar’s land, sea, and air borders to other GCC countries which were closed in the aftermath of diplomatic disputes resulting in the closure of airspace, land, and marine borders since 2017.

Qatar and Saudi Arabia share a land border that is now open for traffic including the marine borders between Qatar, Bahrain, Saudi Arabia, and the United Arab Emirates. The airspaces of Bahrain, Egypt, Saudi Arabia, and the United Arab Emirates are now open and the aircrafts originating from Qatar can enter others’ territory after the announcement was made.

Following the Al-Ula declaration, Saudi Arabia and the UAE have taken immediate steps to re-open all land, marine, and air passages for both inbound and outbound movements, to and fro, Qatar, and the concerned authorities in both countries have issued appropriate directives to this effect.

Resumption of air traffic between the UAE and Qatar happened from 9 January 2021 when the General Civil Aviation Authority (GCAA) of UAE declared re-opening of airspace stating that the GCAA would resume both scheduled and unscheduled flights between the two countries.

In similar efforts, on 8 January Abu Dhabi ports for Qatar vessels were opened and vessels were scheduled to depart the UAE for Qatar as the next port of destination.

Saudi Arabia too had announced similar measures that took effect from the evening of 4 January. The Civil Aviation Affairs (CAA) at the Ministry of Transportation and Telecommunications of Bahrain also announced the opening of Bahraini airspace for Qatar-registered aircraft, commencing 11 January. Similarly, according to the Egyptian Ministry of Civil Aviation, Egypt had reopened its airspace on 12 January, allowing Egypt Air and Qatar Airways as well as other Qatari airlines, to resume air traffic.

Trade and Business for both Qatar and the four GCC nation-states including Egypt look very promising in the near future which is also pointed out by S & P Global Ratings who added, ” We expect that the resolution of the boycott will support improvement in the region’s broader business and investment environment.”

In the wake of the restrictions imposed in 2017, most businesses in Qatar needed to re-strategize and reinvent their supply routes and procurement models to avoid the strategically located restricted jurisdictions including the UAE and KSA.

It is not only Qatar, during this embargo all businesses operating in the gulf had faced severe disruptions to transportation and supply routes, and workaround supply chains adversely impacted all businesses with higher operating cost and time.

Due to the recent development and lifting of the restrictions, it has now become paramount for businesses and organizations with operational presence in Qatar to realize and comprehend the implications of this trade development. It is believed that this recent agreement will present many opportunities to relook into the logistics and supply chain for optimizing overall business performance through business process reengineering and the right determination of customs and trade implications of such a supply chain and business model will be crucial for re-configuration. 

Critically reviewing and assessing new supply chains with value stream mapping, businesses will identify how existing supply chains need to be changed for improved performance. Import duties and taxes can be an area of significant importance in optimizing the routing of goods around the GCC region.

As Qatar has introduced and demarcated several Free Zones, many multinational and GCC-based businesses should find the country economically preferable for new business establishments with access to numerous incentives to benefit from including tax holidays and customs duty reliefs on imports.

Businesses expected to reap the maximum benefit out of this deal will be the banking, import-export, travel and tourism, aviation, and hospitality sectors.

Even with the official lifting of the restrictions against Qatar, it is likely to take some time before the administrative decisions are enacted in full force and spirit to fully resume the shipment of goods between the Quartet and Qatar. The customs clearance protocols also need to be standardized. Though it would be too early to predict the outcomes, it will be a strong and important foundation for the economic prosperity and political stability in the GCC region. The 2022 FIFA world cup scheduled to be organized in Qatar will also act as a catalyst for the enhancement of business and trade.

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