The United Arab Emirates (UAE), and the United Kingdom (UK) signed an agreement on Wednesday designed to end double taxation between the citizens of the two nations. The UAE’s Minister of State for Financial Affairs, Obaid Humaid Al Tayer, and the UK’s Commercial Secretary to the Treasury, Lord O’Neill of Gatley, signed the treaty, which is intended to enhance the economic and trade ties between the countries and to protect both companies and individual citizens from the threat of double taxation.
Al Tayer emphasized the virtues of the economic treaty during his announcement of the signing. He underscored that the treaty will strengthen the investment environment for citizens of both nations and his belief that it will enhance economic development between both parties. He also stressed his personal belief that the agreement will help the UAE achieve its own national development goals. Here are several excerpts.
“The agreement enhances the depth of the bilateral relations between UAE and UK, especially the economic and investment relations, due to the countries’ advantages of the economic integration.”
“The agreement also provides a safe environment for bilateral investments which in turn supports the national economy.”
“The Ministry of Finance continues to expand UAE’s network of agreements on the avoidance of double taxation due to their role in supporting with economic development, diversification of national income sources as well as increasing investment opportunities through encouraging free flow of trade and investment. In fact, this will enhance the country’s economic competitiveness and benefit the investments of public and private sector and individuals.”
Lord O’Neill of Gatley echoed the Minister’s sentiments, saying, “I am delighted to have signed today with His Excellency Obaid Humaid Al Tayer a Double Taxation Convention between the UAE and the UK. This will fill an important gap in the framework for commercial cooperation between the UK and UAE…It will remove one area of possible uncertainty for the thousands of UK businesses operating in the UAE, and for the 100,000+ British nationals living and working in the UAE. The signing of this convention is part of the constant process of reinforcing the relationship between our two countries, which is broad and deep, historic and modern.”
This is not the first economic treaty shared by these two nations. The UAE and the UK had previously signed an agreement on the promotion and protection of investments in the UK by citizens and corporation of the UAE. They are also members of the Joint Economic Committee.