UAE Strengthens Economic Ties with Russia Through Double Taxation Avoidance Agreement

 The United Arab Emirates (UAE) has successfully concluded the final round of negotiations with the Russian Federation for a Double Taxation Avoidance Agreement (DTAA) on income and capital. This landmark agreement highlights the UAE's commitment to fostering a business-friendly environment, enhancing economic cooperation, and eliminating tax-related barriers to investment and trade.

Strengthening Bilateral Relations

The negotiations, which took place at the UAE Ministry of Finance offices in Dubai, mark a significant step in fortifying the economic and trade relationship between the two nations. The UAE delegation was led by His Excellency Younis Haji Alkhoori, Undersecretary of the Ministry of Finance, with the participation of Shabana Aman Khan Begum, Executive Director of the Tax Policy Sector. The Russian delegation was headed by His Excellency Alexey Sazanov, Deputy Minister of Finance of the Russian Federation.

The talks concluded with the initial signing of the draft agreement, signifying a milestone in the shared commitment to economic growth and investment facilitation.

Building Investor Confidence

The agreement is designed to establish a stable and predictable tax framework, preventing double taxation and fostering confidence among both foreign and domestic investors. By eliminating tax obstacles that may hinder investment, the DTAA is expected to stimulate joint investments, support economic growth, and facilitate the seamless flow of goods, services, and capital between the two nations.

His Excellency Younis Haji Alkhoori emphasized the significance of the agreement:
"This agreement represents a strategic step forward in strengthening the economic ties between the UAE and Russia. It provides a clear and stable legal framework that supports investors, enhances trade exchange, and fosters mutual confidence in the business environment."

Promoting Sustainable Growth

The UAE’s focus on creating an investment-friendly tax environment aligns with its broader economic vision to attract international investors and promote sustainable development. The agreement aims to achieve the following:

• Prevent double taxation: Protecting individuals and businesses from being taxed twice on the same income.
• Facilitate trade and investment: Encouraging the free flow of trade and the seamless movement of capital.
• Foster innovation and cooperation: Supporting the exchange of expertise, technologies, and business opportunities between institutions in both nations.
• Ensure global alignment: Addressing international tax challenges and aligning with global tax standards.

A Step Towards Economic Diversification

The DTAA with Russia reflects the UAE's dedication to diversifying its income streams and enhancing developmental objectives. By providing comprehensive protection against double taxation and preventing tax evasion, the agreement ensures a fair and transparent tax framework that benefits both individuals and corporations.

"We are confident that this agreement will open new avenues for collaboration and economic growth across various sectors," said His Excellency Alkhoori. "It also underscores the UAE’s position as a preferred global hub for trade, investment, and innovation."

A Path to Long-Term Prosperity

As the UAE continues to position itself as a global leader in economic development, the agreement with Russia demonstrates its proactive approach to fostering international partnerships and creating a sustainable economic future. By addressing cross-border trade and investment challenges, the DTAA lays the foundation for long-term prosperity and mutual benefit for both nations.

The UAE’s negotiation and finalization of this agreement serve as a testament to its commitment to building robust economic ties, fostering investor confidence, and driving global economic integration. This achievement not only strengthens the UAE-Russia partnership but also reinforces the UAE’s reputation as a key player in the global economic landscape.