Dubai has set the trade target for year 2025: Dh2 trillion. Despite headwinds from an intensified global economic downturn, the 2019 have intensively contributed towards significant growth and brought the emirate closer to the desired goal. Dubai, being the business destination for the major part of entrepreneurs, has again proven its steady positions on the global markets.
Here are the key numbers to help these businessmen who consider their trade operations, to make the right business decision.
In terms of values, Dubai’s external trade hit Dh1.371 trillion last year compared to Dh1.299 trillion in 2018. Exports skyrocketed 22% to Dh155 billion, re-exports grew by 4% to Dh420 billion and imports rose by 3% to Dh796 billion.
The highest-traded commodity by value in 2019:
Gold, jewellery and diamonds, which contributed Dh370 billion, a growth of 7% from 2018. Gold took the lion’s share of trade with Dh169.5 billion
Phones with Dh164 billion, an increase of 9% from the previous year.
Jewellery at Dh116.6 billion
Petroleum oils that contributed Dh85.4 billion in 2019, a growth of 55%
Free Zones in Dubai are a key factor behind the emirate’s trade success. The sophisticated infrastructure, especially Jebel Ali Free Zone (Jafza), has helped businesses benefit from different incentives and facilities, and attracted most of foreign investments over the years.
In 2019 Jafza was the major contributor to the overall increase, accounting for Dh592 billion, a 11% increase year-on-year. Direct trade saw 2% growth to reach Dh770 billion. Customs warehouse trade hit Dh9 billion.
Attention all Companies licensed under Ras Al Khaimah Economic Zone (RAKEZ), please be informed that you are required to submit Audited Financial Statements by June 30, 2020. Failure to submit the required audited financial statements will result in a fine of AED 2,500 and may lead to suspension of services.
As per the RAKEZ Companies Regulations, it is the responsibility of each company to ensure that their appointed auditor is registered as an Approved Auditor with RAKEZ and is listed in the Approved Auditors List.
Asad Abbas & Co. (Chartered Accountants) is duly registered and have been supporting its clients in RAKEZ for decades. We have highly professional team to support your operations.
Please contact us at +00971 4 4329083 or Email Us: email@example.com for more information or clarifications on this matter. We will be happy to assist you further.
P.S: This audit should be conducted by a RAKEZ approved auditor
please click on the link below for the RAKEZ Approved Auditors List
VAT Non-compliance Would Attract Fines of up to Dh50,000
It has been more than two years since the UAE levied 5% value-added tax on goods and services. VAT was introduced for the first time in the country, and a number of companies have been making mistakes in filing their tax returns, consequently attracting fines. Here are most common reasons that may cause fines as high as Dh50,000:
hiring of the wrong resources
failure to issue valid tax invoice
non-maintenance of records
mistakes in calculating and paying VAT but failing to file the appropriate amounts
limited understanding of the concept of exempt, zero-rated and outside of scope supply
misinterpretation of the VAT legislation deduction of input VAT on non-compliant invoices
incorrectly performing the calculations for partial deduction
incorrect deduction of input VAT for blocked items or linked to exempt supplies
incorrect recovery input VAT on capital assets and the deduction of import VAT paid on behalf of other businesses
Companies must take a thorough review of compliances undertaken and positions adopted, create a VAT governance framework with proper roles
and responsibilities defined for the team members, appoint tax experts for periodic review of tax positions and VAT returns, upgrade IT setup to meet the record-keeping requirement and train to the users.
Investing in right people and technology in the solution would save businesses from failure. I see many businesses surprised when they finally do end up getting advice, make a voluntary disclosure and end up being heavily penalised.
Our advice would be: do not delay until last moment and seek professional help beforehand. Would you like to discuss in person? Message us directly.