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DIFC ADGM Sign Memorandum of Understanding with Israel’s Largest Bank Hapoalim
  • Newsletter, U.A.E

DIFC ADGM Sign Memorandum of Understanding with Israel’s Largest Bank Hapoalim

Dubai International Financial Centre (DIFC), a top ten global financial centre, and the leading financial hub for the Middle East, Africa and South Asia (MEASA) region and home to the largest most developed financial and FinTech ecosystems in the region with a presence of 72 countries, has signed a memorandum of understanding with Hapoalim Bank of Israel, one of the largest bank and financial services company in Israel. The agreement aims at cooperation across financial activities and will benefit both countries in a wide range of mutually beneficial opportunities.

Bank Hapoalim, the leading bank in Israel and headquartered in Tel Aviv is engaged in corporate and private banking services. The bank was founded in 1921 and is a publicly-traded banking corporation organized and operating under Israeli law listed on the Tel Aviv Stock Exchange (TASE).

As per the agreement signed on 21st November 2020, Bank Hapoalim will become a global partner of the DIFC and will also become a part of DIFC worldwide network of banks, financial centres, regulators and companies disrupting financial and technology sectors and embracing the highest legal, regulatory and operating standards.

The MOU signed with the DIFC will enable bank Hapoalim to avail banking and innovation opportunities in the MEASA regions.

The agreement reached will enable DIFC to help Emirates facilitate economic growth from the finance and innovation sectors. Besides, the MOU will support the DIFC vision to drive the future of finance from Dubai. The agreement also demonstrates the contribution of DIFC to the UAE’s willingness to forge business ties with Israel and promote Israeli business setup in Dubai.

The agreement also marks a step towards bank Hapoalim establishing the bank’s first regional presence outside Israel. Both the entities recognize the importance of collaborative efforts through knowledge sharing, delegations hosting and industry events promotional activities.

FinTech and investment experts from Hapoalim bank will also be invited to take part in exclusive events including the forthcoming DIFC Fintech Hive Investor Day and explore opportunities for company formation in Dubai.

Arif Amiri, CEO of DIFC Authority commented: ” Our partnership provides Bank Hapoalim with access to the most developed, broad and deep financial ecosystem in the region, allowing them to capitalize on the most lucrative banking, capital markets,  asset management, innovation and fintech opportunities available.”

Arif Amiri also said: “We hope the agreement will provide us with a unique Dubai-Israel opportunity to accelerate our future of finance agenda and stimulate innovation with Bank Hapoalim through the DIFC Innovation Hub.”

Dov Kotler, CEO of Bank Hapoalim remarked: “It will provide Israeli fintech entrepreneurs with a gateway to the dynamic and vibrant Dubai ecosystem, and help foster cross border innovation. It is an honour to be the first Israeli bank to construct this important bridge for innovation.”

The CEO of Bank Hapoalim also added: “The agreement signed with Dubai International Financial Centre is an important milestone. We hope to serve, extend and strengthen the financial relationship between our two countries.”

Emirates NBD, a Dubai based lender signed an MOU with Israel’s Bank Hapoalim in September 2020 allowing Israeli clients to transact directly in the UAE.

Abu Dhabi Global Market (ADGM) and Bank Hapoalim have also signed an agreement to jointly innovate on fintech services, ecosystems and market opportunities, the official news agency WAM reported on 21st November 2020.

As per the agreement, ADGM and Bank Hapoalim will collaborate on fintech projects in the fields of international trade, business and financial services activities between the UAE and Israel.

ADGM and Bank Hapoalim will also support fintech companies and entrepreneurs seeking to scale their presence across the UAE and Israeli markets.

Dhaher bin Dhaher Al AlMheiri,  CEO of the ADGM Registration Authority said: ” ADGM is continuously working with strategic partners, locally and internationally, to further the Abu Dhabi and UAE’s economic plans and technology agenda, and we are excited to partner with Bank Hapoalim to advance the banking and financial services in both jurisdictions. “

Dov Kotler, CEO of Bank Hapoalim nominated speaker at the upcoming FinTech Abu Dhabi festival commented: ” The agreement with Abu Dhabi Global Market is a breakthrough pact that we hope will serve to extend and strengthen the financial cooperation between the UAE and Israel. It will enable fintech companies, customers of Bank Hapoalim, access to a new world of opportunities. It is a great honour to be the first bank to sign such an agreement that will contribute to the establishment of the relationship between our two countries and economies.”

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Dubai Chamber Hosts Israeli Business Delegation to Pave the Way for Investments and Trade Ties
  • Newsletter, U.A.E

Dubai Chamber Hosts Israeli Business Delegation to Pave the Way for Investments and Trade Ties

A high-level Israeli delegation led by the Federation of Israeli Chamber of Commerce (FICC)  and consisting of representatives of the FICC, Israeli Manufacturers Association and the Israel Export Institute visited Dubai Chamber of Commerce and Industry headquarters on Monday, 9th November 2020 to discuss and lay out the groundwork for exploring prospects of trade and cooperation between Dubai and Israel and to facilitate business set up in Dubai.

The invitation for Israeli delegation was sent by the President and Chairman of Dubai Chamber of Commerce and Industry, H.E. Hammad Buamim who also serves as the Chairman of World Chambers Federation.

The visit of the business delegation is a part of the trade mission organized by the Dubai Chamber and aims to familiarize Israeli businessmen with the economy, business environment and competitive advantage of Dubai.

The delegation also aims to set the stage for Emirati and Israeli business ties and promote relations with the institutions in industry, trade and investment of both countries.

The visit was in line with the efforts of Dubai Chamber to maximize opportunities for Dubai’s dynamic private sector, create fertile ground for investments from local, regional and global stakeholders, and provide training for education and skills to boost the capacity of its members to carry out business activities.

Importantly, the visit was organized only after two months of signing a strategic partnership between Dubai Chamber and Tel Aviv Chamber of Commerce, represented by the FICC to oversee bilateral economic cooperation benefitting both countries’ business ecosystems.

As per press release, with the partnership agreement, both the nations will produce a joint study identifying synergistic sectors of mutual interest, plan a roadmap of virtual events and commit to organizing a business delegation and mutual hosts. It would also include hosting a joint business forum and support for new businesses, startups and scale-ups with available resources and programs.

Through the entire week, the delegation met with officials from Dubai Exports, Dubai Airport Free Zone, Dubai South, Expo 2020 Dubai, Jebel Ali Free Zone, DP World, Dubai Future Foundation, Dubai World Trade Centre and Dubai Multi Commodities Centre. The Israeli delegation also visited the Sheikh Mohammed Centre for Cultural Understanding.

The delegation was headed by Uriel Lynn, President of the FICC and also accompanied David Castel, CEO, Haifa Chamber of Commerce, FICC; Amir Shani, Vice President, FICC; Adiv Baruch, Chairman, Israel Export & International Cooperation Institute; Zeev Lavie, VP, International Relations Division & Business Development, FICC; Gadi Ariely, DG, Israel Export & International Cooperation Institute; Sabine Segal, Deputy Director-General for International Business Affairs Israel Export and International Cooperation Institute; and Avshalom Vilan, Secretary-General, Israel Farmers’ Federation.

H.E. Hammad Buamim and Dubai Chamber officials and directors received the delegation and HE. Buamim expressed his optimism about the prospects for developing and promoting Dubai- Israel trade. He also emphasized saying that there exists a huge potential for companies of both countries to explore and forge mutually beneficial partnerships and capitalize on new market opportunities.

H.E.Buamim also highlighted the competitive advantage that Dubai can provide Israeli companies as a strategic trade hub offering access to the emerging markets across the GCC and Africa and South Asia.

Dubai Chamber’s President and CEO also stressed upon the fact of Dubai’s strengthening position as a worldwide preferred market for startups and noted that the Emirate continues to launch new business incentives to attract innovative entrepreneurs and top talents, including long term residency visas and recently a virtual work visa for Dubai company incorporation.

There is a growing demand for high tech, pharmaceutical and electronic products in the UAE generating numerous investment opportunities that Israeli companies can benefit from, given their strong expertise and advanced solutions in these fields, H.E. Buamim commented.

Sustainable Agriculture, food security banking, fintech, cybersecurity and space economy have also been identified as high potential areas where the UAE and Israel can build new partnerships, Dubai Chamber’s head noted.

Uriel Lynn, President FICC described the visit as an important step towards developing UAE-Israel trade relations, promoting mutual understanding and facilitating cross-border cooperation across several economic sectors of mutual interest.

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Understanding the Economic Substance Regulations
  • Newsletter, U.A.E

Understanding the Economic Substance Regulations

Subsequent to the consultations with European Union and Organization for Economic Co-operation and Development OECD, the Cabinet of Ministers of UAE updated the 2019 Cabinet Decision No. 31, pertaining to the Economic Substance regulations (ESR). The upended regulations were announced by the Cabinet Resolution No. 57 in August 2020. Additionally, the Ministerial Decision No. 100 was released that gave supplementary information on the implemented Relevant Activities Guide.

As per the laws mentioned under Economic Substance Regulations, it will be applicable in retrospect from January 2019 on al licensees in UAE. Thus, all licensees will need to re-evaluate their ESR categories and make the relevant changes as per the newly amended laws and regulations. It will require all licensees to again file the FY 2019 notifications at the Ministry of Finance portal, while the ESR reports will be required to be uploaded within 12 months. The portal will be live in December 2020.

Key Amendments

As per the amendments done in August 2020 in the Economic Substance Regulations, here is a quick purview:

Role of FTA and RA: UAE Federal Tax Authority (FTA) is now the National Assessing Authority and will oversee the enforcement of economic substance tests. While the Regulatory Authorities shall be responsible for collection and checks on the authenticity of reports and notifications submitted by the license holders.

Amendment of the term Licensee: It now stands for unincorporated partnerships, juridical individuals that carry on with relevant activities that is companies established in the Free Zones- Abu Dhabi Global Market and the Dubai International Financial Centre. Those that are no longer under the ESR include sole proprietors, foundations and trusts.

Exemptions to Licensees: In the past, the ESR exemptions were granted to companies/entities with 51% indirect/direct government ownership has been revoked.  Now, only these licensee categories are exempted:

  • UAE offices of foreign companies
  • Tax residents staying away from UAE
  • Investment funds
  • Licensees granted exemption by Ministry of Finance (they will be required to file notifications and sufficient evidence for exemptions)

Specification on Notification

Now on, exempted licensees and licensees carrying on with relevant activity have to be done within 6 months of the FY end. While the deadline is within 12 months of the year end- December 2020.

Clarifications on ESR Test

There are no major changes to the ESR tests. However, some changes that have been included are that the directors of the licensee do not have to be UAE resident, but the Board of directors need meet in UAE based on the activity levels of the Licensee.

Economic Substance Report

The company needs to submit the ESR to the MoF while the Licensee’s FY report has to contain:

  • Category of relevant activity that is conducted
  • Gross income, type of operational costs and assets in UAE
  • Place and location of business
  • Details of full-time employees in UAE
  • Financial statements
  • Declaration if or not the Licensee adheres to the Economic Substance Test
Companies that need to comply with the ESR

All of the businesses and companies that are registered in the UAE doing relevant activity need to comply with the provisions of the ESR. These include:

  • Banking and Insurance
  • Distribution and Service Centers​
  • Finance – Lease Business
  • Investment Fund management companies
  • Holding Company Business 
  • Shipping companies
  • Intellectual property Business

Penalties

There has been an increase in the penalties. In the first year, failure to submit report or the requirements of the ESR is AED 50,000. In the second year, it is AED 400,000. If the Licensee fails to submit notifications, the levy is AED 20,000. If there is continuous non-compliance, the license will be revoked.

Thus, the new regulations will ensure that the Licensees will undertake the required measures to adhere to the current Economic Substance Regulations to streamline and fall within the purview of the government required compliances.

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The Ultimate Beneficial Ownership (UBO) Regulation in the UAE: Procedural Amendment
  • Newsletter, U.A.E

The Ultimate Beneficial Ownership (UBO) Regulation in the UAE: Procedural Amendment

Cabinet Resolution No. (58)/ 2020 regulating Procedures related to Beneficial Owners (the ” Resolution “) came into force on the 27th of August 2020 superseding earlier cabinet resolution of 34 of 2020.

The Resolution imposes new procedural requirements for companies, registered and licensed in the UAE on disclosure and record-keeping to enhance transparency in the UAE’s business climate and develop effective and sustainable executive and regulatory mechanisms on beneficial owner data.

The Resolution requires the UAE licenced companies to prepare and file an Ultimate Beneficial Owners’ (UBOs’) register, a Partners’ or Shareholders’ register and a Nominee Directors’ register with the relevant UAE authority.

The requirement of maintaining and filing Partners’ or Shareholders’ register has already been there in the UAE under the Commercial Companies Law 2015 including respective free zone companies regulations and the Nominee Directors’ and UBOs’ register are newly introduced requirements.

The Resolution is applicable for all companies registered and licensed in the UAE excluding companies in financial free zones (Dubai International Financial Centre and Abu Dhabi Global Markets) and companies directly or indirectly wholly owned by Federal or Emirate.

UBOs’ register needs a careful analysis of a company’s corporate structure, management and control to identify and disclose the real beneficiaries who are natural persons and ultimately own or control a company through the direct or indirect ownership of a minimum 25% of company’s shares. The real beneficiaries also have the right to appoint or dismiss the majority of Directors and/or Managers.

In absence of natural persons owning a minimum of 25% of the company’s shares, then any natural person exercising control over the company by other means shall be identified as the UBO. In case, any natural person doesn’t satisfy this condition too then any natural person responsible for the senior management of the company shall be deemed as the UBO.

The UBO register must document beneficiaries particular about

  • Name, Nationality, Date and Place of Birth
  • Address
  • The basis of and the date when the real person has become the UBO
  • Passport details
  • Emirates ID
  • The date when the natural person ceases to be the UBO

Register of Partners/ Shareholders must contain information about the number of ownership interests held by each partner or shareholder including voting rights attached to such ownership interests and the date of acquisition of ownership interests. It also requires details of any trustee with rights and powers in respect of the company as evidenced from the document establishing a trust.

Register for Nominee Director/ Manager must have details of Directors/ Managers and must be a natural person serving in a Director capacity and acting following guidelines, instructions, or will of another person, the Nominee Manager.

As per the Resolution, the companies must notify the relevant authority about any change or revision in the information provided within 15 days of such change or revision and the registers are required to be updated accordingly.

Companies failing to comply with the requirements of this Resolution, the UAE Ministry of Economy will impose sanctions on these companies. The administrative sanction details are yet to be published.

There should be the primary contact in the company as an authorized agent for submitting information to the authority as well as receiving notifications if any.

All information provided in the registers is to be kept confidential and unavailable to the public domain as per the privacy protection policy of the UAE.

Over the past years, some free zones in the UAE e.g. Dubai Multi Commodities Centre, Jebel Ali Free Zone, TECOM already implemented requirements of UBO information during registration and licensing of companies. The recent announcement of Resolution 58 will now bring uniformity amongst all free zones and mainland companies.

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UAE Unveils Onshore Trust Law: A Legislative Framework for Wealth Management
  • Newsletter, U.A.E

UAE Unveils Onshore Trust Law: A Legislative Framework for Wealth Management

The UAE cabinet, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Ruler of Dubai approved the issuance of a new Federal Decree-Law on Financial Covenants. The law provides a legislative framework that will regulate and boost the country’s wealth management sector and help protect investors and attract foreign investment.

The Federal Decree is an innovative and future-oriented legislative framework accommodating the needs and expectations of both family business owners and other business owners and investors.

The onshore trust law comes in the support and enhancement of the growing wealth management sector in the country. It will act as an integrated system for companies and individuals owning various capital and financial rights and willing to hand their wealth over as a financial covenant to a trust managed by competent and qualified persons or institutions, well versed with various investment patterns and risks due to lack of money management expertise and enough time.

Family-owned businesses, the socio economic cornerstones in the UAE for many years will be the top beneficiaries of the Decree-law as the founders and owners of these companies and businesses, will be able to develop long term stable and sustainable plans for the protection and succession planning of their companies’ assets.

Family business owners are often faced with issues related to the family business continuity and succession, and the Federal Decree will provide solutions to these issues.

Besides the family business, the legislation will also promote the investment infrastructure in the UAE as an additional financial tool for financing and investment in the hands of the investors.

The Decree-Law will help in establishing trust structures onshore as a basis of company and asset holding arrangements similar to the types available in common law jurisdictions such as the UK, Jersey, BVI and Cayman, and protect the wealth of family-owned businesses.

The Federal Decree includes various types of covenants with specific purposes, such as a ” Charitable Trust” created for charitable purposes, or a private trust created to deal in securities and financial markets or for establishing retirement funds or ensuring that benefits are provided to the beneficiaries in exchange of regular contributions paid for the covenant.

Financial Free Zones, the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market are excluded from implementing the provisions of the Decree-Law as these zones already have trust laws and their legislations.

The law also highlights the ” bond covenant ” and its importance as the basic document that includes all terms and conditions such as the beneficiary, the conditions for dealing in funds, the method for appointing, removing and replacing the trustee, the effects of termination of the covenant, method of appointing the guard of the covenant with details of executive powers and ways to increase the covenant funds.

The Decree-Law emphasizes a forward-looking initiative of the UAE cabinet to create a competitive business climate and expand the legal framework to serve business owners and attract foreign investors.

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India Oman to Expedite Amendments on Double Taxation Treaties And Boost Bilateral Trades And Investments
  • India, Newsletter, Oman

India Oman to Expedite Amendments on Double Taxation Treaties And Boost Bilateral Trades And Investments

In a bid to boost bilateral trade and investment, India and Oman during the ninth session of India -Oman joint commission meeting (JCM) reviewed the recent developments in businesses and trades and reaffirmed their commitment to expand bilateral trades and encourage businesses to invest in each other’s country to realize untapped potentials in commercial and economic relationships.

The ninth India-Oman CM was held in October 2020 through a virtual platform and was co-chaired by Hardeep Singh Puri, Minister of State for Commerce and Industry and H.E. Mr.Quis bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion of the Sultanate of Oman.

Bilateral trade between the two countries has increased to USD 5.93 billion in 2019-20 registering a growth of 8.5%. India -Oman agreed to cooperate in the areas of Agriculture and Food Security, Standards and Metrology, Tourism, Information Technology, Health and Pharmaceuticals, MSMEs, Space and Civil Aviation, Renewable Energy, Mining, Culture and Higher Education.

Indian companies are already invested in Oman and in Steel, Cement, Fertilizers, Textile, Cables, Chemicals and Automotive Sectors. There are already more than 4000 Indian business establishments in Oman with an estimated investment of 7.5 billion USD.

Company formation in Oman has been encouraged by the Oman Ministry of Commerce, Industry and Investment promotion and assured liberal benefits for Indian companies.

As per a press release, “Both sides also agreed to expedite their internal procedures for signing ratification of the protocol amending India-Oman Double Taxation Agreement and conclusion of the India-Oman Bilateral Investment Treaty.”

India and Oman reviewed and assessed the progress of the proposed MOUs in different sectors and mutually agreed to conclude them promptly. Indian representatives appreciated Oman for signing the International Solar Alliance Framework Agreement.

India has long been associated in business and trade with Oman and  has enjoyed a friendly diplomatic relationship. Increasing bilateral trade and investment between the two countries and a strategic partnership reinforced a need to review and expedite the double taxation treaty and procedural amendments as appropriate.

The India Oman business ties have been robust and expanding for quite some time now and India is Oman’s one of the top trading partners. For Oman, India has been its third-largest source of imports and also the third-largest export market for its non-oil products.

Mr. Hardeep Singh Puri highlighted recent initiatives undertaken by the Indian Government for enhancing the ease of doing business in India and promoting business through Product Linked Incentive (PLI) schemes in various sectors. He also invited Oman business enterprises and Omani Sovereign Wealth Funds to invest in India.

Company formation in India has now become much simpler, transparent and less bureaucratic. IMC, a professionally managed and well-experienced business service consultancy group can help Oman business enterprises to set up companies in India and provide all necessary support from the start to end. IMC is based in one of the Indian metropolitan cities and also has well established operational setups in Dubai and Singapore.

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Saudi Arabia And The UN ITU Sign MOU to Collaborate on AI Optimization Globally
  • Newsletter, Saudi Arabia

Saudi Arabia And The UN ITU Sign MOU to Collaborate on AI Optimization Globally

Saudi Arabia represented by the Saudi Data and AI Authority (SDAIA) and the International Telecommunication Union (ITU) of the United Nations has recently reached a Memorandum of Understanding (MOU) to collaborate on initiatives aimed at supporting, strengthening and optimizing the benefits of Artificial Intelligence (AI) for sustainable development globally.

During the Global AI summit hosted in Riyadh, the Saudi ITU MOU was signed on the second day for making AI best practices available to everyone on this planet. In this collaborative agreement, Saudi Arabia will support ITU in developing initiatives, activities and projects facilitating the UN Sustainable Development Goals (SDGs) through international cooperation, knowledge sharing and multi-stakeholder participation.

As per Saudi Press Agency (SPA), this MOU announced with ITU in a virtual ceremony organized during the Global AI summit 2020 will help to develop an internationally recognized system for mobilizing resources and providing assistance to institutions willing to adopt AI technologies. Dr. Abdullah bin Sharaf Al-Ghamdi, the President of the SDAIA welcomed this MOU as a significant step towards new investments and company formation in Saudi Arabia.

Al-Ghamdi said,” The ITU will share best practices in the field of AI with the Kingdom. This will help in shedding light on how to sponsor and support emerging companies and new incubators in the national space, especially as there is no official framework that currently exists to support the AI readiness of countries and international cooperation.” As per the President,” Around the world, nations have recognized the transformative potential of Artificial Intelligence and are preparing themselves to harness the benefit of AI to support their development strategies and goals.”

“With this announcement of this MOU, Saudi Arabia intends to support ITU to design activities that will help strengthen global efforts to use AI technologies for the advancement of sustainable development and growth. SDAIA has been established to drive AI programs in the Kingdom, and enable Saudi Arabia to become a global leader in AI. Through this partnership we will support the sharing of knowledge and experience among all nations, to further the use of AI for the benefit of humanity.” HE Dr. Al- Ghamdi highlighted.

In his address, the ITU Secretary-General Houlin Zhao said, ” AI is being used to tackle the world’s most pressing challenges, from climate change to the Covid-19 pandemic.” He also greeted the announcement of the MOU and said that the UN agency also looked forward to this partnership with SDAIA for developing initiatives and projects in AI technologies and promoting sustainable developments on a global scale.

The Secretary-General of the ITU also emphasized the importance of this collaborative agreement saying,” We dream of a world where nations harness the power of AI together, where we all exchange ideas and best practices, where we collaborate to unlock the full potential of AI. He also reiterated, “With AI impacting every aspect of today and tomorrow, collaboration is needed more than ever.”

Founded in 2019, the SDAIA is a world-class governing body to drive the Kingdom of Saudi Arabia’s AI innovations and ecosystems and also to lead AI optimization for global economic development and growth.

The Global AI Summit hosted by SDAIA is an international meet and brings the world’s important decision-makers, technologists and investors under a common Umbrella. Human welfare being the driving theme, this event recognizes the global disruption of the Covid pandemic and explores the transformative potential of AI and Smart Technologies to effectively handle the post covid new normal and make the world a better place to live. It is now evident that new AI startups and established global players will now be increasingly attracted to Saudi Arabia and look for how to open branch office in Saudi Arabia.

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Singapore and Germany Collaborate to Boost Digital Transformation of Businesses
  • Newsletter, Singapore

Singapore and Germany Collaborate to Boost Digital Transformation of Businesses

Singapore is one of the leading nations in the World Digital Competitiveness Ranking in 2020 only being second to the USA. Even in 2019, it remained the second most digitally competitive country in the world. This international ranking is based on the ability of any nation to use digital technologies for promoting economic transformation in business, government and other social domains. There is a sizable increase in Foreign Direct Investment in South- East Asia with Singapore attracting the highest investment.

“The Post-Covid world will be characterised by a K-shaped recovery, with two types of economies: those that will recover quickly and those that will recover more slowly,” says Professor Arturo Bris, Director of the IMD World Competitiveness Centre. As per him,”

Recovery is driven by many factors, such as the health of public finances. But also, fundamentally, by the digital competitiveness of those economies”

Germany, on the other hand, has been the biggest contributor to technology and science over centuries; be it in physics, chemistry, cars and consumer products and given birth to most of the Nobel Laureates in Science in the world. Many EU funded projects are controlled and coordinated by German companies and research institutes today and highlight its science and technology innovation in diverse fields including Information and Communication Technologies.

Several initiatives recently announced by Singapore and German authorities will now provide multiple opportunities to the companies from both countries to work together and spearhead their digital transformation of various business processes.

A Memorandum of Understanding (MOU) jointly signed by Enterprise Singapore (ESG) and the Asia Pacific Committee of German Business (APA) on 15th of October, 2020 announced a series of initiatives to be undertaken jointly to support enterprise development through a transformation in sectors of common interest for the two countries.

The joint initiatives are launched to strengthen business ties and exchange technological know-how between Singapore and Germany. The Germany Singapore Business Forum (GSBF) organized twice over the last four years has also been a part of the initiatives. GSBF helped influence Singapore companies to take interest and explore potential business opportunities in Germany.

As part of agreements, ESG and APA will support enterprise development through industrial and digital transformation in sectors of mutual interest including advanced manufacturing, digitalization and innovation, medical technology and healthcare, and future of mobility.

The enterprise development will be realized through increased collaboration in open innovation and by jointly accessing market opportunities in Southeast Asia and Europe.

Under the MOU, a refreshed version of GSBF newly named as GSBF Connect will be jointly organized by ESG and APA to facilitate sector-specific and more frequent collaborations between the two countries.

GSBF Connect will now be sector-specific and will be held throughout the year with the first edition dedicated to the manufacturing sector and planned to run virtually. The second edition is scheduled to take place in December during the Singapore week of innovation and technology.

More than 400 companies from both countries have used this forum over the last four years. The Germany Business missions also increased from 13 to 22 between 2018 and 2019. Over 150 companies have been benefited in 2019 from different sectors such as advanced manufacturing, medical technology and healthcare, the future of mobility and e-sports.

Peter Ong, Chairman of ESG addressed, ” In this changing business environment, our enterprises need to connect with one another in more and better ways. Germany and Singapore are trusted partners who place a high emphasis on delivering quality and innovative products and services.”

“Singapore is attractive to German companies in several ways as a long term partner with whom new technologies and innovative business models can be developed, but also as an experienced bridge builder into the emerging Asian region.”, highlighted Professor Axel Stepken, co-chairman of GSBF connect and TUV SUD AG management board chairman.

Prof Stepken also said,” Singapore has a strong record as a leading Research and Development Hub and digital trendsetter, while German companies are known for their ability to manufacture state-of-the-art machinery and products. I still see many fields and sectors in which we can bring our specific strengths together.”

Singapore and Germany collaboration also include SME funding programme facilitating Partnerships e.g. Singapore firm Move on Technologies and German company Vanguard Automation.

A new four-way partnership was agreed on October 14th between Singapore Polytechnic, German testing, inspection and certification company TUV SUD, Delta Electronics and Singapore’s Smart Transformation Alliance (STA).

Partnering with Germany will inevitably lead to lower integration cost and fewer challenges in the deployment of more advanced automation systems for the Singapore’s local companies embracing industry 4 solutions and more number of foreign companies are expected to pour in for Singapore company incorporation.

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UAE Offers Lucrative Business Opportunities to Indian MSMEs
  • Newsletter, U.A.E

UAE Offers Lucrative Business Opportunities to Indian MSMEs

 The UAE Ministry of Economy has specially invited the Indian major chambers and business associations to explore investment opportunities in Dubai for MSMEs and other Industries and participate in the Digital Annual Investment Meeting 2020.

The Annual Investment Meeting (AIM) in the UAE, an initiative of the Ministry of Economy is the largest deal-making virtual platform where countries feature investment destinations at their locations and attract Foreign Direct Investments (FDI). The three-day digital event organized in a secured digital environment strengthens networking of investment experts and facilitates key investment strategies.

The theme of AIM revolves around FDI, Small and Medium Enterprises, Startups,  Future Cities, Foreign Portfolio Investment and, the One Belt One Road and is held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and the ruler of Dubai.

The UAE is all geared up to for the first virtual AIM 2020 connecting potential investment experts and business professionals and featuring Pre-conference Workshops, Opening Ceremony, Conference, Regional Focus Sessions, Digital Country Presentation, Exhibition, Digital Networking, Made in Series, Startups Pitch Competitions, AIM Awards, Investors Hub and many more.

AIM being a credible and globally prominent Investment Platform has been influential in extending needed resources for learning, showcasing, Investing, Recognizing and Networking and consistently attracted support and participation of Governments and Ministries from many countries over the world. It has also lured infrastructure and project authorities, financial institutions, sovereign wealth funds, venture capitalists, investment experts and professionals, private companies, international organizations and global investors from 140 countries.

Increased business revenues and profit margins are the major objectives for exploring international markets and besides, a presence in other countries also increases the customer base, distributes business risks, helps identify cost-effective global suppliers and recruit new talents.

Over the decades, Dubai has developed a made-for-trade business ecosystem that offers robust infrastructure facilities and a transparent regulatory environment conducive for business growth and success.

Dubai is also a strategic business location with excellent connectivity with India that facilitates India’s exports from SME and MSME sectors to other countries. Company formation and business set up in Dubai are also very simple and free of bureaucratic interventions.

The Dubai Multi Commodities Centre (DMCC), established in 2002 as a free zone commodity marketplace in the heart of Dubai has already attracted more than 17000 global companies, SMEs, and Startups as their second home. Considered as the most prestigious free zone in the UAE for setting up businesses, DMCC has bagged “Global Free Zone of the Year ” five years in a row by Financial Times FDI Magazine. This Free Zone in Dubai is truly remarkable and can be the best place for the Indian Companies to set up businesses in the UAE.

With the Diplomatic Breakthrough with Israel, the UAE will also offer innumerable opportunities in high-end technology, e-commerce, healthcare and renewable sectors to the Indian Industries. The ports and logistics capabilities of both India and the UAE can also be instrumental for ensuring end-to-end integrated supply chain solutions for business growth.

Should Indian business entities want to start a business in the DMCC Free Zone, IMC is always at their service to get started with the right tools and expertise. DMCC Company Formation is always an easy and affordable task with IMC providing the expert and professional support throughout the company formation.

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UAE Post Covid Economy is all Poised for a Bounce Back In 2021
  • Newsletter, U.A.E

UAE Post Covid Economy is all Poised for a Bounce Back In 2021

In every possibility, the UAE’s economy will make a modest comeback in 2021. With the global economy recovering from the severe damages of the Covid 19 pandemic and assuming that the global World Expo takes place as scheduled with the motto of “Sustainability, Mobility and Opportunity”, the projected economy is all set to rebound with more than 3 % increase in its GDP.

UAE is the most developed and diversified economy in the Middle East, Africa and South Asia (MEASA) region and handled the covid pandemic much effectively and decisively in comparison to many countries in the world. The covid cases have been greatly contained by enforcing personal hygiene, ramping up testing capacity and spending heavily in covid public welfare and vaccine development.

Though lockdown of global economies caused a significant drop in oil prices and badly affected the aviation industry, UAE will not be impacted that severely like other oil-producing countries because of the diversified nature of its industries and continued Government support for small and medium enterprises. The business outlook in the UAE is much more promising than other regional players with more than 100 Government initiatives already launched and is still the most attractive nation for a Dubai Company Incorporation.

The Positives for the UAE’s Economic Recovery

Despite many short term challenges, the long-term economic outlook of the UAE can be extremely lucrative for new businesses and industries willing to take advantage of new opportunities with well-planned strategies and risk management. The oil and gas; power and water; petrochemicals; transport; construction and renewable sectors are the major business sectors that could offer plenty of openings for business growth and developments.

  • With more than $868 billion of projects already planned and underway and $132 billion under execution, the UAE will be one of the largest project markets in the Middle East and North Africa.
  • The postponed Expo 2020 will heighten the post covid business enthusiasm in the UAE.
  • The UAE is well considered as the global transit hub and when travelling resumes in 2021, there will be a huge increase in the number of business and tourists.
  • Abraham Accords has been signed in September 2020 and a diplomatic breakthrough reached between the UAE and Israel which promises an increased cross border investments in the areas of technology, tourism, security, health care and water with Israel and expansion in the UAE market.
  • The Fintech sector has been well supported by the UAE Government and will be instrumental in future business growth.
  • There has been improved domestic demand and consumer spending backed by the UAE’s large expatriate community after many months of covid restrictions.
  • Reduced oil prices and covid induced drop in GDP will give rise to more than 8% fiscal deficit. However, the fiscal deficit will not pose a serious concern and could be easily financed considering huge assets held with the Sovereign Wealth Funds.
  • Separate measures have been taken by the UAE free zone authorities e.g. the DIFC.
  • Many business support initiatives from the UAE government for the SMEs with tax relief, incentives and filing extensions.
  • AED 1.5 billion economic stimulus package from the UAE Central Bank.

Opportunities in Project and Other Sectors

More than $672 billion worth of projects are in the pipeline in the UAE out of which $417.7 billion is in the construction sector only and the remaining $ 95.3 billion in oil & gas and $ 82.9 billion for transport.

The other industries gaining momentum in demand are food, medical equipment, health care, pharma, e-commerce, delivery services and telecom and will offer tremendous business opportunities to potential investors.

IMC has a local presence in the UAE and can provide you with every support in your new Dubai business ventures with extensive knowledge and know-how on new business set up in Dubai.

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