A Quarterly Newsletter from the UAE and Oman member firms of the PKF International Ltd. network

VOL 19, Issue 3 July 2017

From the Managing Partner - U.A.E.

A belated Eid Mubarak to all – I do hope you all had a peaceful and productive Holy Month of Ramadan and an enjoyable Eid break as we head into the summer period. No doubt many will be actively looking to get projects finished prior to decision makers taking summer breaks.

The recent increase in the Fed rate by 25 basis points has resulted in a similar increase here what with the Dirham-Dollar peg. Whilst this was to be expected, it does not help those already experiencing tight liquidity or limited access to funds. And indeed, the recent issues with the State of Qatar and the resultant asserting of sovereign rights by some GCC states will also likely have an impact on the commercial operations of a few companies this year.

Over the last few months Value-Added Tax (VAT) has been on everyone’s lips and I am sure many of you have been to the briefings being given by the Ministry of Finance. Given that only the GCC Framework has been issued but we still await the UAE VAT law and associated implementing regulations, it is understandable that all questions cannot yet be answered. We can, however, provide an insight into how VAT may affect your business (VAT impact) and subsequently assist you with VAT implementation. In this connection we are profiling our Tax Director, Sarika Dhameja in this issue – see page 9. Please feel free to contact her on sdhameja@pkfuae.com.

We are very pleased to interview in this issue, Mr. Mohammad Bin Suwailem, Executive Director, Dubai Airport Free Zone. We also feature some guidance on fair value measurement which may be topical given that we are passing through testing times.

We also have our usual updates from Oman (featuring the Sultanate’s budget for 2017) and the free zone world. Please feel free to write (update@pkfuae.com) if you would like to express an opinion on any matter inside.