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Press Release
DIFC Economics Workshop Explores Taxation as a Means of
Diversifying GCC Government Revenues
Dubai, 5 April 2010: The DIFC today hosted its ninth Economics Workshop series focused on discussing
critical issues associated with the role of taxation in addressing the challenge of diversifying government
revenue from dependence oil and gas revenues.
Speakers from DIFC and leading financial consulting firms explored how GCC countries can create a
modern, rational and efficient tax system that can improve revenue diversification and boost the fiscal
capacity of their economies in 2010.
Dr. Nasser Al Saidi, Chief Economist of the DIFC Authority said: “Government finances in GCC countries are
highly dependent on revenues from hydrocarbon exports, which makes them vulnerable to the volatility of oil
and gas prices. Volatility in government revenues affects expenditure plans and investment spending in
development projects, which in turn threatens the sustainability of economic growth. To address these
financial and economic vulnerabilities, the GCC countries need to understand public finance reform and
diversify their government revenue sources by considering various sources of taxation, including sales taxes
and value added taxation.”
Speakers examined the mechanisms necessary for administering a broad-based taxation regime and how
the introduction of value added taxation (VAT) could impact the economy of a region that is considered a
haven from personal income taxes and often corporate taxes. The Workshop also discussed how the
introduction of VAT could facilitate the planned GCC monetary union
Speaking about the changing tax landscape in the region, Dean Rolfe, Tax Partner – Middle East Tax
Leader, PricewaterhouseCoopers said: “The tax environment in the Middle East is evolving rapidly. This
evolution is being driven partly by a need to compete for foreign direct investment and partly by a need to
diversify revenue streams. Reform of tax systems in the region is gathering pace with Qatar, Oman and
Kuwait recently rewriting their corporate income tax laws.”
Howard R. Hull, Chairman of the UAE Chapter of the International Fiscal Association, spoke about the role of
the International Fiscal Association (IFA) in advancing the development of tax legislation: "Cross-border
investments need to be managed carefully in order to capture tax opportunities and mitigate risks. The
International Fiscal Association is a platform for tax practitioners to address topical issues and the latest
developments in international tax law and practice.”
Apart from individual addresses by speakers, the Workshop also featured a round table discussion on the
subject: ‘Revenue Diversification and Modernisation of Tax Systems in the GCC’. Other specific topics
discussed at the Workshop included the outcomes of tax benefits; tax implementation in the GCC; the role
and activities of the International Fiscal Association in the Middle East; and the characteristics, benefits and
application of double taxation agreements.
Apart from Dr. Nasser Al Saidi, speakers at the Workshop included Dr. Ehtisham Ahmad, Advisor, Office of
the Prime Minister; Chris Kealy, Tax Partner, Global Tax Services, Ernst & Young; Dean Rolfe, Tax Partner,
Middle East Tax Leader, PricewaterhouseCoopers; David G. Stevens, Partner - PricewaterhouseCoopers;
and Howard R. Hull, Chairman of the UAE Chapter - International Fiscal Association.
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About DIFC
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap
between the financial centres of Hong Kong and London and services a region with the largest untapped
emerging market for financial services. In just five years, over 850 firms have registered at DIFC. They
operate in an open environment complemented with world-class regulations and standards. DIFC offers its
member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and
no restrictions on foreign exchange. In addition their business benefits from modern infrastructure,
operational support and business continuity facilities of uncompromisingly high standards.
For PR inquiries on DIFC, please contact:
Amira Abdulla
Director - Regional Public Relations
Dubai International Financial Centre
Tel: +971 4 362 2433
Email: [email protected]
Iman Ahmad
Manager - Regional Media Relations
Dubai International Financial Centre
Tel: +971 4 362 2685
E-mail: [email protected]
Shaima Al Zarouni
Assistant Public Relations Manager
Dubai International Financial Centre
Tel: +971 4 362 2432
Email: [email protected]