UAE tax update; Petrol price cuts; Abu Dhabi Airport name change; Saudi Arabia to host 2034 World Cup – 10 things you missed this week

The guide provides clarification for non-residents who derive income in the country and offers advice on payments.

Meanwhile, UAE petrol prices for the month of November were released – showing a sharp decline in the cost of filling up at the pumps.

Elsewhere, the new Terminal A of Abu Dhabi International Airport was opened with the news it is set to change name next year.

Saudi Arabia was in the headlines after FIFA revealed the 2034 World Cup will be hosted in the Kingdom.

Catch up with 10 of the biggest stories you may have missed this week, as selected by Arabian Business editors.

UAE announces new tax rules for non-residents

The Federal Tax Authority (FTA) in the UAE has announced a new guide for the criteria for determining non-residents subject to corporate tax in the country. This clarification comes as part of the corporate tax law, which came into effect on June 1, 2023.

In a statement, the FTA invited all non-residents who derive income in the UAE to consult the new guidelines and the relevant legal framework on their official website.

According to the FTA’s guide, a non-resident may be subject to corporate tax under specific conditions. For natural persons, two cases apply. The first is if a natural person has a Permanent Establishment in the UAE and a Turnover exceeding AED1,000,000 during a calendar year. The second is if they derive State-Sourced Income from the Emirates.

UAE announces petrol price drop for November 2023

The UAE has revealed its November petrol rates, following its routine monthly price adjustments.

Following a surge in October, petrol costs have decreased this month.

From November 1, the cost of filling up vehicles in the UAE will be:

• Special 95 – AED2.92 litre from AED3.33 in October
• Super 98 – AED3.03 a litre from AED3.44 in October
• E-Plus – AED2.85 a litre from AED3.26 in October
• Diesel – AED3.42 a litre from AED3.57 in October

UAE President Sheikh Mohamed orders Abu Dhabi Airport to be renamed

Abu Dhabi International Airport will be renamed to Zayed International Airport from February 9, 2024.

“Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, has issued directives to rename Abu Dhabi International Airport. The new official name, Zayed International Airport, will take effect from 9 February, 2024, coinciding with the official opening ceremony of the new Terminal A,” the Abu Dhabi Media Office (ADMO) said in a statement on Tuesday.

The Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, visited Terminal A at Abu Dhabi International Airport in anticipation of its opening on November 1, 2023.

UAE casino: Dubai construction giant ALEC says Wynn gaming project ‘fantastic for Ras Al Khaimah’

As one of Dubai’s largest contractors, ALEC is positioning itself to capitalise on emerging opportunities across the UAE and GCC, its new CEO Barry Lewis told Arabian Business.

A key project on the horizon is Ras Al Khaimah’s mammoth $3.9bn Wynn gaming resort, where ALEC holds the primary construction contract.

“The Wynn gaming facility is a fantastic scoop for us – it’s a big job,” noted Lewis of the five-star integrated complex. Spanning over 1,500 hotel rooms along with retail, dining and entertainment amenities, its scale suits ALEC’s specialised capabilities.

Saudi Arabia becomes sole bidder for 2034 World Cup, FIFA says

Saudi Arabia is the only football association that presented a bid to host the 2034 FIFA World Cup before the deadline closed, the soccer’s global governing body said.

FIFA had set Tuesday, October 31, as the deadline to submit a bid to host the tournament, but Australia’s decision to pull out leaves Saudi Arabia as the only declared candidate.

Australia said on Tuesday it would not be presenting a bid to host the tournament. FIFA is yet to officially approve Saudi Arabia as the host of the 2034 World Cup, and this is expected to happen next year.

Dubai real estate market faces Riyadh challenge as Saudi property popularity surges

Riyadh is fast emerging as a serious contender in the real estate sector globally, challenging Dubai’s long-standing dominance, riding on the back of a huge price advantage over the UAE city and the Saudi government’s big push to woo international investors through financial incentives, a new industry report revealed.

A vast pool of potential domestic investors – estimated at 37 million, besides the rising number of international investors, are the other factors that could propel the Saudi capital city to become the new regional hot spot for real estate investments.

“In stark contrast to Dubai, Riyadh’s affordability has been a key magnet for investors, promoting substantial economic expansion,” the report by Dubai-based proptech firm Realiste said.

FIVE hotels to create 50 new “staff millionaires” after IPO

FIVE Holdings will create up to 50 new staff millionaires following its IPO in 2025, the group’s founder Kabir Mulchandani has revealed.

In an interview published in Arabian Business, Mulchandani said the group was heading for $2bn public listing in 2025, with $200m of his own shares – around 10% of the company – allocated to staff.

“We don’t really need to do an IPO for money or growth. We are generating a significant amount of cash. The real reason is the employee stock option programme. I have moved $200m worth of my shares to be given to the employees…I think this will give them a sense of ownership,” he said.

Dubai firm fined $370,000 for financial service violations

The Dubai Financial Services Authority (DFSA) has announced that a Dubai firm, FFA Private Bank has been fined AED1,373,122 ($370,000) for lack of adequate systems to identify, assess and report trading which indicated suspicions of market abuse.

The violations have been recorded between February 2018 and March 2021. This action was following the prohibition imposed by the authority in 2021 which was then lifted a few months later following the FFA’s ability to demonstrate DFSA addressed the weaknesses in its systems.

The system weaknesses meant that the firm failed to take relevant steps against suspicious trading, a risk which may have facilitated market abuse.

Oman suspends work visa conversion from visit visas for all nationalities

The Sultanate of Oman announced on Tuesday that it would be suspending the conversion of all types of tourist and visit visas to work visas.

“The Royal Oman Police, within its review of the policies for obtaining some types of visas, announces the suspension of the conversion of all types of tourist and visit visas to work visas for all nationalities coming to the Sultanate of Oman,” the Police said in a post on X, formerly Twitter.

Previously, expats arriving in the country on visit visas could convert to an employment visa, however the new announcement will mean that these individuals will now need to exit the country and return on a work visa.

Dubai, Abu Dhabi hotels running out of space as COP28, F1 come to the UAE

As the UAE prepares to host an influx of visitors for high-profile events like the COP28 climate talks and the F1 Grand Prix, hotel occupancy in Abu Dhabi and Dubai is projected to hit new highs, industry insiders told Arabian Business.

The usual busy season for hospitality and tourism – typically between November and January – has unfolded much earlier than expected for some due to F1, COP28, and other major industry events being held at the Dubai World Trade Centre.

“We have witnessed a substantial surge in hotel occupancy during the F1/COP28 period,” Thomas Kurain, Hotel Manager at Leva Hotels, told Arabian Business.