UAE regrets being named on ‘uncooperative’ tax states list

By Rajive Singh

UAE regrets EU’s decision

ABU DHABI 13 March 2019: The United Arab Emirates regrets the European Union’s decision to include it on a list of non-cooperative jurisdictions for tax purposes.

This inclusion was made despite the UAE’s close cooperation with the EU on this issue and ongoing efforts to fulfill all the EU’s requirements.

The UAE remains firmly committed to its long-standing policy of meeting the highest international standards on taxation, including the OECD’s requirements, and will continue to update its domestic legislative framework in this regard, said Wam.

In furtherance of this commitment, the UAE has shared with the EU a detailed timeline of actions that it is currently implementing in accordance with its sovereign legal process and constitutional requirements.

CBUAE re-affirms financial integrity of UAE banks

UAE-based banks have maintained their financial integrity during Q4 2018 following the enforcement of Basel III Standards, a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk.

The Central Bank of the United Arab Emirates stated that banks operating in the UAE boast high profitability and a robust financial profile, with Capital Adequacy Ratio, First Tranche, Ordinary Share Correspondence to First Tranche, hitting 18.2 percent, 16.9 percent, and 14.9 percent respectively, which is much higher than the regulatory requirements set by the CBUAE.

LDR Falls

Loan-to-deposit ratio (LDR) of all banks fell from 94.8 percent in September 2018 to 94.4 percent by the end of Q4 2018,after it was 99 percent in Q4 in 2017, as deposits overtook loans during the monitored period.

The LDR stood at 94.7 percent and 93.1 percent at conventional and Islamic banks respectively, down 4 percent and 5 percent respectively from the preceding quarter.

The same ratio reached 94.1 percent in national banks, 0.6 percent down as compared to September 2018, standing at 96.7 percent in UAE-based foreign banks against 95.5 by the end of Q3 2018.

Liquid assets ratio increased from 16.1 percent by the end of Q3 to 17.4 percent by the end of Q4 2018, with total liquid assets standing at Dh407.6 billion by the end of Q3, Dh35.4 billion up from that recorded until the end of Q3.

YOY, total liquid assets across UAE banks increased by Dh9.7 billion, up 2.4 percent.

Dubai Gazette