0% to the tax man...

UAE introduces new (and awesome) tax rules, plus real estate news that will blow your mind.

Author

Money Souk
November 10, 2023

Good morning, ☀️

We’ve got some exciting news on the income tax front (really!), real estate updates that will blow your mind, a sellout of crypto tokens in 1 hour, and a new retirement savings scheme that’s actually worth reading about.

Let’s dive in!

Markets 📈 

*Data as of 11/09/2023 — 8:20 GST

Metal Moves: Gold prices dipped to a three-week low amid a fading 'war premium' and a stronger U.S. dollar, with December gold falling $5.40 to $1,952.40.

Golden News 👑

(Haven Project rendering from Aldar Properties)

  • Why it matters: The successful sellout of phases 1 and 2 of Aldar's Haven project underscores the immense potential for real estate investment opportunities in Dubai. This trend signifies Dubai's growing appeal as a prime global hub for property investment, especially for long-term residency.

UAE announces new tax rules that clarify tax regulations on intellectual property and income earned trading selected items on registered stock exchanges.

  • Why it matters: These new rules include an expanded scope of exemptions and qualifying activities, including a 0% corporate tax rate that applies to income earned from trading things like metals, minerals and energy on recognized stock exchanges.

Al Ansari Financial Services, one of the leading integrated financial services groups in the UAE, has approved its first proposed interim dividend payment of AED 300M at 4 fils per share.

  • Why it matters: This approval aims to ensure consistent returns and long-term value for shareholders, which will affect investors differently depending on individual income needs, investment horizon, and portfolio diversification.

  • Why it matters: High real estate activity in Qatar highlights the healthy real estate investment climate across the GCC region.

UAE shoppers turn to gold bars and coins as gold prices return to $2,000/oz level.

  • Why it matters: The price increase further indicates the value-appreciating nature of gold as an investment. 

Crypto: NCXT token’s round 1 sells out in 1 hour, positioning NCX Exchange as a dominant force in the region.

  • Why it matters: This sellout showcases the high demand for digital assets in the crypto space. NCX Exchange has made a quick expansion in South and South-East Asia with its innovative features like a Crypto DeFi Wallet and a Crypto Debit Card. More crypto news below. 

Expat Wallet 💸 

The UAE government’s new voluntary retirement savings scheme launched at the beginning of November. It’s an alternative to the existing Gratuity Scheme, where employees receive a lump-sum payment when they leave their jobs. 

The Voluntary Alternative End-of-Service Benefits Savings Scheme for employees in the private and free zone sectors works differently: it enables employees, regardless of their salary, to invest their end-of-service benefits and build long-term wealth. This includes self-employed people and independent business owners, as well as expats working for government agencies and institutions. 

Investments can be made in a variety of investment portfolios, allowing employees to choose their financial risk level. Funds are managed by an administrator who provides services that include fund manager, custodian, and other entities to operate as a broker. End-of-service benefits are held with a third party licensed financial institution instead of the employer.

This new scheme is poised to revolutionize financial planning for both UAE-based investors and expats. (Source)

Money Brief 💰

A roundup of the biggest deals in the UAE this week.

Earnings:

  • Dana Gas reported 21% Q3 fall in net profit to AED 381 million (ZWY)

  • JSW Infrastructure, a port operator, sees Q2 net profits increase 85%, and approves acquisition of a UAE oil terminal (BQP)

  • Empower nets AED 685M profit for a 9-month period this year (GN)

  • TECOM Group sees their 9-month net profit surge 20%, with revenues increasing to AED 1.6B (E247)

  • Aldar Properties profits jump 48% on the back of AED 19B+ sales surge driven by international property investors (AB)

  • Emirates Investment Bank Q3 2023 profit jumps to AED 25 million (ZWY)

  • What we’re watching next week:

    • ADNOC Gas, Abu Dhabi Ports, Emaar Development, Tabreed, Shuaa Capital

IPO:

  • UAE’s latest IPO, Investcorp Capital, opens with a price range of AED 1.9 – 2.3 a share (GN)

VC:

  • UAE-based cybersecurity startup SpiderSilk raises AED 33M in a funding round led by Wa’ed Ventures, with participation from STV and Global Ventures (WD)

  • Dubai based buy now, pay later platform Tabby nabs AED 734.6M in Series D funding (TC)

  • DIEZ launches AED 499.5M Venture Capital Fund for fintech startup support (SSM)

M&A / Investments:

  • UAE considers AED 183.65B investment in India to strengthen bilateral ties (BT)

  • UAE’s EDGE Group acquires 52% stake in Swiss air systems firm ANAVIA (GB)

Partnerships:

  • Ducab Group, a UAE manufacturer, signs MoU with Moroccan engineering firm, Somagec Group, to enter Angolan market (E247)

  • Dubai Financial Market (DFM) and multi-purpose superapp, Tawasal, partner to boost accessibility and investor engagement (E247)

Real Estate: 

  • Dubai records 116,116 new real estate transactions worth AED 429.67B in 9 months (E247)

  • Dubai real estate sector records AED 11.75B of transactions this week (AB)

Sales: Downtown Dubai leads apartment sales rates at AED 2,453/sq ft, while Palm Jumeirah tops the charts for villas, reaching AED 4,995/sq ft.

Rentals: Palm Jumeirah offers luxury with an average annual rent of AED 257,366. If you're eyeing exclusivity, Al Barari's villas might be your match with rents averaging at AED 1,098,788.

What You Get: AED 260,000 luxury 2-bedroom apartment in Harbour Point, Dubai 🏙️

A fully furnished Harbour Point apartment with 2 bedrooms, 2 bathrooms and expansive Dubai Creek and Burj Khalifa views. (Source)

  • Size: 1,098 square feet

  • Annual asking price per square foot: AED 237

Crypto: 

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Weekly Meme

That’s all for now! 

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