A tax treaty between Saudi Arabia and UAE designed to provide a more flexible investment climate for the two countries has come into effect.
The Avoidance of Double Taxation Agreement was signed in Jeddah in May 2018 but it has taken this long for the relevant authorities to complete the necessary regulatory procedures.
Now that the agreement has taken effect both countries will be hoping that it serves to make them both more attractive destinations for international investors.
Younis Haji Al Khoori, undersecretary of UAE’s ministry of finance described the agreement as “a qualitative leap forward” in bilateral relations between the two countries, especially in financial and economic terms.
“These agreements contribute to the elimination of double taxation, facilitate cross-border trade and investment flows, and provide protection to taxpayers from direct and indirect double taxation,” he said. “This in turn enhances the country’s investment climate and makes it more attractive as a destination for foreign investment.”
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