Abu Dhabi: The UAE has signed an initial double taxation avoidance agreement on commodities and services with Hong Kong.
The agreement will play a vital role in facilitating the movement of capital and is in line with the UAE's efforts to strengthen financial relations with various countries of the world, the Ministry of Finance (MoF) said yesterday.
The agreement will encourage economic openness between the two economies by facilitating the movement of production material, encouraging export and import operations and increasing investment opportunities. It will enhance trade and exports and advance economic ties, the statement said.
Largest partner
Younus Hajji Al Khoury, Director General of MoF, who signed the agreement, 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 cooperation among our two fast growing economies and the region in general. It will create more opportunities 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 agreements with trade partners that include nine Arab countries and 43 others.
