Abu Dhabi: The UAE and Japan signed an agreement for cooperation in nuclear energy on Thursday, further strengthening the energy ties between both nations during the official visit of Japanese Prime Minister Shinzo Abe.
A convention for avoidance of double taxation was also signed during the official meeting between His Highness Shaikh Mohammad Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai and Abe in Dubai yesterday.
“Agreement between governments of Japan and the UAE for the cooperation in the peaceful uses of nuclear energy” was signed by Hamad Al Ka’abi, UAE’s permanent representative to the International Atomic Energy Agency (IAEA) and Yoshiko Kamo, the Japanese Ambassador to the UAE, in the presence of both the leaders.
“Convention between Japan and the UAE for the avoidance of double taxation and the prevention of fiscal evasion with respect taxes on income” was signed by Obaid Humaid Al Tayer, UAE minister of state for finance, and Kamo.
The agreement on nuclear energy will facilitate transfer of nuclear technology, expertise and equipment between both nations, Yutaka Yokoi, press secretary at the Japanese Ministry of Foreign Affairs, said at a press conference in Abu Dhabi yesterday.
The UAE has signed similar accords with Australia, Canada, the US, UK, South Korea, France and Russia.
The UAE started constructing nuclear power plants in the Western Region of Abu Dhabi as part of its strategy to diversify energy sources and minimise power generation from natural gas and oil, which offer potential export revenues.
A consortium of South Korean companies have already started constructing the first nuclear power plant in Barakah for the Emirates Nuclear Energy Corporation (Enec) and the construction of second plant is expected this year. These are the first in the series of nuclear power plants being planned in the Gulf, including Saudi Arabia.
Enec has already started construction of the first plant, and expects to start building the second reactor this year. Enec has already applied for a license from the UAE nuclear regulator for building the third and fourth reactors.
Enec signed in August contracts worth $3 billion with six international companies, including Russia’s Tenex, Rio Tinto PLC and France’s Areva SA, to supply nuclear fuel, conversion and enrichment services for its four South Korea-designed advanced pressurised water reactors. Each of the four planned reactors is capable of producing 1,400 megawatts of electricity.
The contracts, which cover the first 15 years of the reactors’ operations, will provide Enec with long-term security of supply, and favourable pricing and commercial terms, the company said.
The Japanese officials said the convention for avoiding double taxation will help the businesses a lot. The convention defines what sort of income of the UAE and Japanese companies can be taxed, the press secretary said. Japanese companies making profits in the UAE will be huge beneficiaries of the convention, Yokoi said .
He said both nations have started negotiating a treaty for protection of investments .
— With inputs from Dow Jones Newswires
