Undersecretary of the UAE Ministry of Finance, Younis Al-Khoury, said the total UAE-wide revenue from value added tax from its application in 2018 through the end of October 2021 amounted to more than 95, 4 billion dirhams, while the total state-level revenue from the selective tax for the same period More than 8.6 billion dirhams.
Al Khouri revealed that the Ministry of Finance is currently working with the Central Bank of the UAE, all financial authorities and specialized experts to develop the local debt market in the UAE dirham by issuing an appropriate debt instrument by of the state, thus facilitating the development of the long-curve of the dirham’s forward yields.
He added that the most important and important achievements of the Public Debt Office at the Ministry of Finance are the success of the external issuance of the UAE federal government and the inclusion of the first issuance of sovereign bonds worth 4 billion. US dollars, according to the Emirati news agency “WAM”.
He explained that the bonds named in US dollars included three tranches; The first worth one billion dollars for ten years, the second worth one billion dollars for 20 years, and the third “Formosa” bond worth two billion dollars for a duration of 40 years, which in all of this attracted enormous interest from investors in the region and around the world, as subscription requests exceeded the target level, at a rate of 5.6 times and a total of $ 22.5 billion, which allowed the Ministry of Finance to issue bonds with the lowest yield for an inaugural sovereign issue among the countries of the Cooperation Council for the Arab States of the Gulf, as the yields of the three issues were valued at 2%, 2.875% and 3.250% respectively , This confirms the strength of the UAE’s sovereign rating and its solid and balanced economy.
Al Khouri added that the UAE has obtained a sovereign rating of AA- from the international agency “Fitch” and a rating of “Aa2” in creditworthiness, which is the strongest sovereign rating in the region, by the international rating agency “Moody’s”, with a stable outlook for the country by both agencies.
The UAE has started to implement selective tax as of 1 October 2017, which is an indirect tax, imposed on certain goods that are harmful to human health or the environment, while the implementation of the value added tax began on January 1, 2018, at a base rate of 5% on most goods and services provided in each stage of the supply chain.
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