Dubai(Web Desk )
Ambassador Faisal Niaz Tirmizi, Pakistan’s Envoy to UAE and Muhammad Zubair Motiwala, Chief Executive, Trade Development Authority of Pakistan (TDAP) attended Pakistan Middle East Trade Development Conference 2024 held at Pakistan Association Dubai (PAD).

The conference was arranged with collaboration of the Pakistan’s Embassy, TDAP and Engro-Pakistan. Pakistani exhibitors participating in the ongoing Gulfood 2024 and Emirati Business community attended the event.

The conference focused on exchanging ideas to explore opportunities for fostering trade relations between Pakistan and the Middle East. The event aimed at facilitating Pakistani traders in the Middle East offering networking opportunities, especially with UAE buyers.
Ambassador Faisal Niaz Tirmizi highlighted the opportunities for Pakistani companies in UAE especially in the sectors of dairy, meat, fruits & vegetables as well as in nonfood products. The Ambassador explained that UAE’s market is ever growing that provides ideal opportunities for dedicated Pakistani companies with sound business plans to take maximum advantage of these opportunities.
Panel discussions were also held during the conference which focused on evolving strategies to enhance market penetration and navigate challenges effectively. Mr Abdullah Ali Mohammed Al Awar, Chairman Al Awar Livestock Trading Est. and Mr Rashif Abdullah Al Awar, Vice Chairman of Al Awar Livestock Trading Est., Dr. Shehzad Amin, Chief Executive Officer Pakistan Dairy Association, Ali Tanveer Khan, Director Business Development & Optimization, MEPA, FrieslandCampina and other leading Pakistani businessmen and exporters attended the event.
Mr Usman Zaheer, Senior Vice Chairman Pakistan Dairy Association highlighted the importance of dairy exports to UAE market from Pakistan and highlighted the need for producing value added dairy products. Mr. Ali Tanveer appreciated the support of the Government of Pakistan that enabled Friesland Campina’s penetration into UAE market.
While moderating the panel discussion, Dr. Shehzad Amin shared the idea of creating an incubator cell at Pakistan Association Dubai for new companies and exporters who wish to enter UAE market. Muhammad Zubar Motiwala, endorsed the idea and pledged support from TDAP to establish the business incubator center at PAD for promoting new export businesses. He also highlighted the Agro Food exhibition to be held in Karachi during August 2024, and invited businessmen from UAE to participate.

DAVOS: DP World and JW International Holdings have inked a Memorandum of Understanding (MoU) to jointly work in Pakistan, JW Global CEO Javid Afridi said on Wednesday.

On the occasion of singing ceremony, Prime Minister of Pakistan Anwar-ul-Haq Kakar was also present.

Prime Minister Kakar and the chairman and CEO of DPW Sultan Ahmad Suleman also held a meeting and discussed matters of mutual interest. Sultan Ahmad Suleman said that Pakistan is an emerging market and a key corridor in Central Asia.  He hoped that the MoU will enhance trade in entire region.

Javid Afridi said that as per the MoU, the two sides will jointly work in Pakistan in diverse fields including Special Economic Zones and Logistic Parks.

Javid Afridi hoped that the MoU will explore new venues of for economic growth in Pakistan.

CALIFORNIA: The most prominent messenger application – WhatsApp – has recently introduced a new custom sticker creation option on iOS, enabling users to edit images from the camera roll into their unique visual combinations.

In a recent update, the app has incorporated the capability to generate stickers from images, a functionality that has been accessible on iOS for approximately a year, western media reported.

This feature allows users to trim elements from photos for personalized visuals. The latest enhancement introduces the flexibility to add diverse elements like graphics, drawn-on updates, animated effects, and more.

Whatsapp Introduces New Features
The procedure is user-friendly – individuals can fashion a sticker from an existing image in their device gallery and tailor it with preferred elements. Moreover, the newly introduced feature permits the editing of previously created stickers. This enhancement adds an entertaining dimension, providing users with an additional avenue to enhance engagement and interaction through creative elements.

WhatsApp is also expanding its text formatting options on Android, enabling users to integrate code blocks, quotes, bullet points, and more. Although these formatting choices have been accessible on iOS for a while, they are now being extended to Android, broadening communication possibilities within the application.

As UAE companies prepare for corporate tax, the primary focus remains on revenue streams and on free zone tax benefits.

Any business-related expenses – generally assumed to be tax deductible – often escape a comprehensive analysis. But these expenses form an equally important aspect of determining taxable income. Any error in tax positions could result in future penalties.

Another issue relates to non-deductible expenses. Any fines and penalties – otherwise claimed as an expense in the account books – should be added back to the profits to determine the taxable income. Exception applies to amounts awarded as compensation for damages or breach of contract

Such expense restriction is generally not a significant concern for most companies. The quantum of statutory penalties are generally not substantial.

The car rental industry, however, could face strong headwinds from such expense restrictions. Depending on their fleet size, rental companies regularly pay fines for traffic violations committed by their customers.

It is often claimed that the violation is committed by customers and not by the rental companies. That the rental company is only a facilitator/conduit between the customers and the authorities.

The veracity of any such claims hinges on identifying as to who is statutorily liable to pay such fines. One needs to also examine if the restriction on their deductibility is absolute or depend on the recoveries made from customers.

Product samples, gifts

A common query regarding expense deductibility relates to product samples and marketing gifts. The items could be provided to existing as well as potential customers. Except for permitted entities, the UAE tax laws restrict the expense deduction for donations, grants or gifts made to an ‘entity’.

As the law refers to ‘entity’, it is often argued – based on a literal interpretation of the tax laws – that the gifts made to individuals are not restricted for tax purposes.

I have regularly counselled that understanding the context of tax policies is important for interpreting the tax laws. The context of the corporate tax policy does not suggest that gifts to individuals should be allowed as a deductible expenditure.

Taxpayers could seek an official clarification to determine if the gifts and grants to individuals would be allowed as a deductible expenditure.

Business expenditure

Any expenditure incurred ‘wholly and exclusively’ for the purposes of a taxpayer’s business is deductible from taxable income. Having led the tax functions at a leading industry player, my first thoughts always visualise the soft-drink beverage industry.

It often operates on a two-company model – the concentrate manufacturing company and the bottling company. A substantial portion of its media ad spend expense is incurred by the concentrate manufacturer. In certain countries, the tax authorities have stressed that the advertised product – the beverage bottle – is never manufactured by the concentrate manufacturer and, axiomatically, the ad expense does not relate to their business.

In the UAE context, such an argument could also risk the ‘exclusivity’ requirement for expense deduction.

Similar tax conundrums would be faced by brand owners and marketing offices incurring marketing expenses for products never manufactured or sold by them.

Airlines

To highlight the importance of tax policy context and its understanding, the apt example would be that of the airline industry. Only 50 per cent of the expenditure incurred in connection with meals or transportation provided to its customers is deductible. It is generally referred to as ‘entertainment’ expenditure.

As the passengers are nothing but customers of airlines, would the 50 per cent restriction apply to their entire operating expenditure? Only a contextual reading would provide the correct answer to such question.

Tax laws are not written for specific industries. A perfunctory analysis of the tax laws and errors in understanding implications is likely to result in financial penalties. Business owners need to understand the importance of a comprehensive tax analysis.

UAE conglomerate looks to legally protect nearly $1b of its investments in the

Dubai: Al Habtoor Group has issued a formal notice initiating an investment dispute against Lebanon, as the UAE conglomerate’s sets out to legally protect nearly $1 billion (Dh3.67 billion) of its investments in the country.

The notice is in connection with Lebanon’s breach of the Bilateral Investment Treaty between the UAE and Lebanon, the company said in a statement, referring to an agreement put in place to protect UAE investments in Lebanon territory since 1999.

“In particular, Lebanon and its central bank have imposed restrictions preventing Al Habtoor Group from freely transferring its funds amounting to over $44 million (Dh161.6 million) from the Lebanese banks,” Al Habtoor Group further revealed.

“Lebanon has also failed to secure a safe and sound environment for Al Habtoor Group’s businesses and investments. As a result of Lebanon’s actions, Al Habtoor Group has incurred and continues to incur significant losses and damages.”

With Lebanon now finding itself mired in deep financial crises that threaten to further destabilise the country, foreign investors particularly from the Gulf Cooperation Council (GCC) states are concerned about protecting their business interests.

Dubai: Al Habtoor Group has issued a formal notice initiating an investment dispute against Lebanon, as the UAE conglomerate’s sets out to legally protect nearly $1 billion (Dh3.67 billion) of its investments in the country.

The notice is in connection with Lebanon’s breach of the Bilateral Investment Treaty between the UAE and Lebanon, the company said in a statement, referring to an agreement put in place to protect UAE investments in Lebanon territory since 1999.

“In particular, Lebanon and its central bank have imposed restrictions preventing Al Habtoor Group from freely transferring its funds amounting to over $44 million (Dh161.6 million) from the Lebanese banks,” Al Habtoor Group further revealed.

“Lebanon has also failed to secure a safe and sound environment for Al Habtoor Group’s businesses and investments. As a result of Lebanon’s actions, Al Habtoor Group has incurred and continues to incur significant losses and damages.”

With Lebanon now finding itself mired in deep financial crises that threaten to further destabilise the country, foreign investors particularly from the Gulf Cooperation Council (GCC) states are concerned about protecting their business interests.

Dubai: Dubai Aerospace Enterprise (DAE) Ltd, the global aviation services company based in the emirate, announced their business and operational transactions for 2023 on Wednesday.

The company’s results include transactions of the Group as well as its divisions, DAE Capital and DAE Engineering.

DAE Capital acquired 20 aircraft and sold 30 last year, with a final fleet size of 493 aircraft. The fleet includes Airbus, ATR, and Boeing aircraft with a value of US$17 billion.

The firm also acquired the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft in the third quarter of 2023. The average age of DAE’s fleet, the company revealed, was 7.5 years.

DAE Capital served 123 customers across 62 countries while DAE Engineering provided services to more than 50 customers in 25 countries. DAE Engineering was also Appointed the Middle East’s first Boeing 737-800BCF conversion line in partnership with Boeing.

The company announced its largest bank financing in history, with US$1.6 billion (Dh5.87 billion) multi-tranche bank financing, consisting of both conventional and Islamic tranches.

DAE additionally touted their regional and industry-level ratings – Morningstar Sustainalytics ESG Risk Rating of 12.5 – making them top-rated in both sectors for the third year running. In 2023, DAE received the Lowest ESG Risk Rating of any rated aircraft lessor.

Established in 2006, DAE serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle.

RIYADH: Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz has announced that Saudi Aramco has discovered two natural gas fields in the Empty Quarter: Al-Hiran and Al-Mahakik natural gas fields, the Saudi Press Agency (SPA) reported on Sunday.

The discovery of the Al-Hiran gas field was confirmed after gas flowed at a rate of 30 million standard cubic feet (MMSCF), and 1,600 barrels of condensate daily (BCPD).

Meanwhile the Al-Mahakik gas field was confirmed after gas flowed from it at a rate of 0.85 million standard cubic feet.

Furthermore, Natural gas was also found in five reservoirs in previously discovered fields. The gas was discovered in the Jallah reservoir in the ‘Usaikerak field in the Empty Quarter, after gas flowed at a rate of 46 million standard cubic feet per day. In addition to discovering an additional natural gas reservoir in Shadoun field, west of Haradh, after gas flowed from ‘Unayzah – A reservoir, at a rate of 15.5 million standard cubic feet per day with about 460 barrels of condensate daily.

Natural gas was also found in reservoirs in Mazalij field, southwest of Dhahran, where gas flowed at a rate of 14 MMSCFD, with about 4,150 BCPD, and in Al-Sarah reservoir in Al-Wadhihi field and Al-Qusaibah reservoir in Awtad field, near Hofuf city, where natural gas flowed at a rate of 11.7 MMSCFD and 5.1 MMSCFD, with about 57 BCPD.

The Minister congratulated the Custodian of the Two Holy Mosques and Crown Prince on the occasion of these discoveries. He also wished for continued growth, development, and prosperity for the Kingdom of Saudi Arabia and its people.

Three oil tankers, newly sanctioned by Washington, regularly shipped Sokol crude from Russia’s Far East to Indian Oil, the country’s top refiner, in recent months, according to shiptracking data from LSEG, Kpler and trade sources.

The US on Thursday imposed sanctions on maritime companies and vessels for shipping Russian oil sold above the Group of Seven’s price cap, as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.

The Liberian-flagged ships hit with sanctions are the Kazan, Ligovsky Prospect and NS Century, according to the Treasury Department.

All three Aframax-sized tankers discharged Russian Sokol crude in India in September while two of them made the trip in October, the data showed.

In the short-term, sanctions may reduce the number of ships carrying Russian oil and prompt India to seek supplies elsewhere, but they are unlikely to stop the trade altogether due to its lucrative nature, several traders who declined to be named, said.

As long as there are willing buyers, sellers and shippers will always find a way to make the oil flow, one trader said.

One trader also said India may seek supply from the Mediterranean and North Sea to replace Russian Sokol.

NS Century is currently on its way to discharge Sokol crude at Vadinar port in Gujarat for Indian Oil Corp (IOC) on Nov. 25, LSEG and Kpler data showed.

IOC buys Sokol under an annual contract with Russian oil major Rosneft (ROSN.MM). A spike in global prices led to Russian oil being sold at above the price caps imposed by western nations of $60 a barrel.

The three vessels last year obtained safety certification from the Indian Register of Shipping (IRClass), according to its website.

Ligovsky Prospect and Kazan, managed by Oil Tanker (SCF) Management-FZCO, were certified on Sept. 14, and May 7 last year, according to IRClass website. NS Century, managed by Dubai-based Sun Ship management (D) Ltd was certified on Sept. 15, 2022.

Societies such as London-headquartered Lloyd’s Register, the American Bureau of Shipping and IRClass provide services, such as seaworthiness checks and certification, which are vital for securing insurance and entry to ports.

IOC and IRClass did not immediately respond to requests for comment.

Sokol crude is produced at the Sakhalin-1 project, managed by a Rosneft subsidiary after the exit of ExxonMobil.

Prior to sanctions and restructuring of the project’s ownership, India’s ONGC Videsh, the overseas investment arm of state-run Oil and Natural Gas Corp (ONGC.NS), and Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese firms had a stake in the project.

Dubai’s real estate market is likely to cool down next year as prices decelerate, a new report shows.

According to a report by S&P Global, the sector is likely to expand by five to seven per cent next year.

analysts Tatjana Lescova and Sapna Jagtiani wrote in a sector review.

The prices for villas have reportedly exceeded previous peak levels, but apartments are lagging at 10 per cent-20 per cent below previous peaks due to a historical oversupply, the report said.

Dubai’s real estate sector continues to buck global trends. Since 2021, prices have risen at double-digit rates per year, nearing previous peaks, while pre-sales have also reached record highs.

The analysts identified several reasons for the continued buoyancy of Dubai’s property market.

Foreign investors, including high net worth individuals, have helped to sustain strong demand, particularly for prime properties. Strong pre-sales in 2023 contrast with our previous expectation that the market would stabilize. Dubai has remained relatively immune to external pressures from the sluggish global economy, echoing the strength it showed during the pandemic.

Dubai benefits from a diversified economy. It has performed well since the pandemic despite higher funding costs for corporates and lingering inflation, which nevertheless remains below the global average.

the analysts wrote.

S&P expects continued strong momentum in the hospitality, wholesale and retail, and financial services sectors to drive growth in 2024-2025. In contrast, real estate will likely slow down in the next 12-18 months after another strong year in 2023.

The population has grown by over 2 per cent to 3.6 million according to the Dubai Statistics Center (data as of September 2023). And international visitor numbers are continuing to recover. Dubai International Airport handled over 41 million passengers in the first half of 2023, exceeding that of 2019. Dubai is on track to reach 17 million visitors per year, representing a full recovery in just three years.

As real estate prices continue to rise in Dubai, the risk of a cyclical reversal is mounting, the analysts say.

At the same time, the analysts expect pre-sales to also decelerate to a still-healthy level. In

 On Monday, UAE Dirham (AED) to Pakistani Rupee (PKR) exchange rate currently stands at Rs76.80, showing a decrease of Rs1.35 when compared to the previous rate of Rs78.15, while the open market rate is Rs. 80.80.

This shift in AED to PKR rates in Pakistan’s currency exchange landscape is noteworthy, with the interbank conversion rate currently at Rs76.80.

It’s important to note that rates may vary in the open market for those engaged in currency exchange, both for buying and selling.

The Rs1.35 decrease in the UAE Dirham to Pakistani Rupee exchange rate reflects ongoing market dynamics and economic factors that influence the currency exchange market.

Fluctuations in AED to PKR rates are closely monitored by individuals and businesses involved in international transactions, making this development significant in the financial sector.