Dubai: The Avoidance of Double Taxation Agreement signed between the UAE and Saudi Arabia has come into effect at the beginning of this month, after both countries completed the necessary procedures in accordance with their regulations.
The UAE, represented by the Ministry of Finance (MoF), signed an agreement with Saudi Arabia on the avoidance of double taxation on income and capital and the prevention of tax evasion, at the Saudi Ministry of Finance in Jeddah in May 2018.
According to a statement released on Sunday, the agreement aims to strengthen the cooperation in tax matters and consolidate the financial, economic and investment partnership between the two countries. This is in line with the UAE’s efforts to increase investment opportunities, encourage trade and meet the country’s development goals through the diversification of sources of national income and full protection of goods and services.
Investments of Saudi citizens and banks in the UAE were valued at Ds17.08 billion in 2017, whereas the number of economic activity licenses granted to Saudi citizens in the UAE reached 12,451 by end of 2017.
According to statistics, the volume of trade between Saudi Arabia and the UAE reached Dh32.93 billion in 2017, and the number of Saudi shareholders in the UAE joint stock companies reached 118,878 during the same year. The value of real estate transactions for Saudi nationals in the UAE was Dh59 billion in 2017, while the total number of property owners in the UAE was estimated at 4,989 by end of 2017.