UAE Roundup: Budget increase, aid for Lebanon, unlocking investments
Budget increase
The UAE cabinet has approved a balanced budget for the 2025 fiscal year, with expenditures set to increase by nearly 12% to 71.5 billion dirhams ($19.47 billion). Revenue is also projected at 71.5 billion dirhams, maintaining the budget's balance. Nearly 40% of the budget will focus on social development, including significant allocations for education and healthcare. Over 35% will support government affairs, with smaller portions for infrastructure and economic sectors. This budget is part of the UAE's multi-year financial plan for 2022-2026, Zawya reports.
Insurance market leader
The MENA region's insurance market reached a turnover of 50.8 billion USD in 2023, a 9.2% increase from 2022. Non-life premiums dominate, making up 81.2% of the total. According to Atlas Magazine, Saudi Arabia leads the market with 17.45 billion USD (34.4% share), followed by the United Arab Emirates at 14.71 billion USD (29% share).
Crypto exempt from VAT
The United Arab Emirates has announced that cryptocurrency transactions will be exempt from value-added tax (VAT) starting 15 November 2024, with retroactive effect from 1 January 2018. This decision, communicated by the Federal Tax Authority, clarifies that digital assets will not incur the standard 5% VAT, aligning their tax treatment with traditional financial services. As reported by The Paypers, the UAE's regulatory framework supports fintech innovation and aims to bolster cybersecurity amid increasing digital transactions. Collaboration among fintech companies, regulators, and financial institutions is essential to address security challenges.
Goodwill campaign for Lebanon
Sheikh Theyab Bin Mohamed has launched a two-week philanthropic campaign in the UAE, running from October 8 to October 21, to support the people of Lebanon, under the slogan "The UAE Stands with Lebanon." This initiative follows President Sheikh Mohamed bin Zayed Al Nahyan's order for a $100 million relief aid package and the dispatch of six planes with 205 tonnes of essential supplies. Bernama adds that the campaign aims to engage community members and organizations in providing humanitarian support to Lebanon amid its ongoing crisis.
$100 billion investments
India aims to attract $100 billion in investments from the United Arab Emirates, announced Commerce and Industry Minister Piyush Goyal. Following the 12th India-UAE High-Level Task Force meeting, he highlighted that key sectors like data centres, AI, renewable energy, and transmission infrastructure will see significant funding. Currently, UAE's direct equity investments in India total just under $20 billion, with nearly $3 billion invested in the last fiscal year. Over the past five years, UAE's annual investments in India have tripled, making it the seventh-largest investor in the country, Business Today reports.
