New decision aims to improve investment environment

Dubai: A new rule will make it easier for Gulf companies to open offices in the UAE.

Branches of companies from GCC countries — Saudi Arabia, Kuwait, Oman, Bahrain and Qatar — will have the same rights as those of UAE companies, WAM reported yesterday, following meeting of the UAE cabinet chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the Presidential Court.

Summit decree

The move follows a decision by the GCC Supreme Council which issued a communique following the 31st GCC summit decreeing that companies from any of its member-states should be able to open offices in another without requiring a local partner or sponsorship.

At a meeting, the cabinet also passed the estimated budget of the General Pension and Social Security Authority (GPSSA) for 2012 with estimated revenue of about Dh 4 billion and payments and expenditures at about Dh 2.3 billion, and an expected net surplus of Dh 1.7 billion.

Estimated revenues for 2012 recorded an increase of 4 per cent compared to 2011 at Dh 106 million, while estimated expenses rose 16 per cent at Dh 300 million as a result of growing base of pensioners and the projected rise in benefits and compensations.

Revenues on investment were forecast to grow more than 9 per cent at more than Dh 70 million. Market value of the GPSSA investment is also expected to go up.

A number of international conventions the UAE signed with other friendly countries were also approved, as was the budget of the Emirates Investment Authority for fiscal year 2012.