VAT to Impact UAE Economy

A value-added tax, set to be introduced in early 2018 within the UAE, would positively impact the economy, an Abu Dhabi official said, IMEinfo reported. “The proposed 5% VAT will be applied to consumption and not on savings or investments. It will not have a significant impact on businesses and financial markets,” Rashid Al Blooshi, CEO of Abu Dhabi Securities Exchange, ADX, was quoted as saying by the UAE state news agency, WAM. Recently, there have been several speculations about the impact a VAT introduction would have on the country’s overall economy and its level of attractiveness.