STUDY ABROAD ASSIGNMENT
SUBMITTED BY :- Rashmi Yadav
Dubai is a city in UAE and one of the seven emirates that
make up the country.
Population- 2,106,177 & Land territory - 4,114 km2
Emerged as a business and cultural hub of Middle East.
It’s main revenue comes from Tourism.
Major attraction is it’s infrastructure , it has world’s tallest
building –Burj Khalifa.
As of 2012, Dubai is the 22nd most expensive city in the
EXCHANGE CONTROL & DEBT TO EQUITY
Currently no foreign exchange control restrictions in the UAE.
No restrictions on the transfer of funds into or out of the UAE, except
that Israeli currency.
All other currencies are traded freely at market-determined prices.
No licence is required to change money.
The government does not impose debt-to-equity ratio requirements
TAXATION IN THE UAE
Corporation income tax (or equivalent)-No federal corporate income
tax, it is only on oil & gas companies and also on foreign banks.
Personal income tax- No personal income tax.
Sales tax/VAT-No VAT in the UAE ,might introduce in near future.
Municipal tax- It is levied in various forms in various
emirates, generally as a percentage of rental value.
Hotel tax -Impose a 5-10% hotel tax .
Transfer pricing and thin capitalisation-No transfer pricing regime &
also no thin capitalisation.
RESTRICTIONS ON FOREIGN INVESTMENT
The UAE is not an English common law jurisdiction.
Investors, particularly in the real estate sector, are only granted short
six-month resident visas which need to be renewed on expiry.
A foreigner wishing to conduct business outside a free zone must have
a local partner owning at least 51% of the business.
UAE’s oil and natural gas sectors foreign investment is limited to 40
percent and the remaining 60 percent is owned by the Emirates
Sectors including insurance, telecommunication and travel agencies
are still mostly closed to foreigners.
INFRASTRUCTURE- Started focusing on it
when it’s oil reserve started depleting.
REVENUE- Main source is tourism.
BUSINESS- Favours local over foreign investors.
LAW & CULTURE- Stringent laws are there, &
also they take pride in their culture.