Abu Dhabi: The United Arab Emirates and Kuwait have underscored their commitment to enhancing cooperation across various sectors, particularly in the financial arena. This pledge was marked by the signing of key agreements and Memoranda of Understanding (MoUs) during the World Governments Summit 2024, aimed at fostering a robust partnership between the two nations.
Key Agreements:
- Double Taxation Avoidance Agreement: This landmark agreement eliminates double taxation on income and capital, simplifying cross-border investments and promoting financial integration.
- Securities Cooperation: Collaboration between the Securities and Commodities Authorities, along with the tripartite agreement between stock exchanges, fosters cross-border investment in listed companies.
- Innovation and Governance: The moU between the UAE Ministry of Finance and the Sabah Al-Ahmad Centre for Giftedness and Creativity promotes innovation in government work. Additionally, the Governance Institute collaboration enhances corporate governance practices in Kuwaiti companies.
- Investment Promotion: Agreements between investment promotion authorities and the COFE App support business expansion and attract investments into both countries.
Growing Numbers:
- Kuwaiti shareholders in UAE listed companies surged from 3 to 40,979 between 2000 and 2022, reflecting increased investment interest.
- The number of licenses granted to Kuwaiti nationals for economic activities in the UAE reached 5,745 in 2022, showcasing growing business presence.
Trade Flourishes:
- Trade between the UAE and Kuwait reached AED22.3 billion in the first half of 2023, and AED44.8 billion for the whole year, marking a 15% increase from 2021.
- Kuwaiti investments in the UAE totaled $837.8 million between 2016-2020, while UAE investments in Kuwait reached $1.745 billion. Financial and insurance activities are key areas of investment.
Looking Forward:
The UAE and Kuwait’s strengthened financial cooperation sets the stage for continued economic growth and prosperity. By fostering innovation, attracting investments, and facilitating trade, both countries stand to benefit from this strategic partnership.
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