General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, yesterday received Prince Guillaume of Luxembourg, who is on a visit to the UAE. Shaikh Mohammad expressed hope that the visit would contribute to developing avenues of economic and investment cooperation between the two countries. Image Credit: WAM

Dubai: Finance ministers from the UAE and Luxembourg met to discuss deeper ties between the two financial centres.

Obaid Humaid Al Tayer, Minister of State for Fin-ancial Affairs, met with Prince Guillaume of Luxembourg and Luc Frieden, Minister of Finance of Luxembourg, at the ministry's headquarters in Dubai.

The meeting falls within the UAE's policy of strengthening its financial ties with other countries and supporting investment and economic development.

The discussion focused on ways to strengthen cooperation, especially in the financial and banking sectors, and to increase trade relations between the two countries.

Non-oil trade

The volume of non-oil trade between the UAE and Luxembourg reached Dh238 million in 2008.

They also discussed closer cooperation between the world's leading financial centres in Luxembourg and the UAE.

Commenting on the meeting, the UAE minister praised the efforts made to activate the double taxation on income agreement between the two countries, which was ratified in 2005.

The agreement provides a balanced tax treatment for investors in both countries, reinforces capital flows, encourages investments and establishes more joint ventures that will positively benefit both countries.

Al Tayer confirmed that the agreement played an essential role in alleviating the tax impact on investment and is a process that helps increase the effectiveness of investments on revenue and profitability.

It provides governmental investments advantages in making profits on stocks and bonds and promotes tourism.