UAE signs pact to avoid double taxation

The UAE has signed an initial double taxation avoidance agreement on commodities and services with Hong Kong.

The agreement, signed by Younis Haji Al Khoori, Director General of Ministry of Finance, will play a vital role in facilitating the movement of capital and is in line with UAE's efforts to strengthen financial relationships with various countries of the world.

The agreement will encourage economic openness between the two economic powerhouses by facilitating the movement of production material, encouraging export and import operations and increasing investment opportunities. It will enhance trade and export and advance economic relationships.

Commenting on the agreement, Al Khoori said: "The UAE is Hong Kong's largest single export partner in the region. This agreement will have a positive impact on protecting investment and securing economic and trade co-operation among our two fast growing economies and the region in general.

"It will create more opportunity for growth of existing businesses and the formation of new ones and this will add to the prosperity of our two peoples."

According to a report issued by the Hong Kong Trade Development Council, 54 per cent of Hong Kong's exports to Middle East in the first 10 months of 2009 were to the UAE.

The UAE has signed 52 double taxation avoidance pacts with trade partners that include nine Arab countries and 43 others. The ministry has initialed 15 agreements while procedures for the rest are being completed for implementation.

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