The Middle East is a developing and dynamic hub for investment. A growing population and middle class, together with substantial efforts to encourage activity outside of oil and gas industries provides business opportunities across the region. As PwC’s 2017 Paying Taxes study highlights, the Middle East has the least demanding tax framework globally and is the easiest place in which to pay taxes. These factors combined make the region attractive for foreign businesses.
We have developed a series of country specific 'Doing business guides' which are designed to provide an introduction to the tax and legal aspects in the Middle East and answer key questions that an inbound investor may have whilst establishing or developing a business within the region.
As a place to do business, Bahrain continues to be relevant and attractive to investors from around the world. Bahrain maintains its position in the GCC due to its liberal business environment, easy access to the rest of the Middle East and supportive visa policies.
Egypt’s location, tradition in trade, primary industry and manufacturing means it has one of the broadest economies in the region. This broad base coupled with a large population, and recently announced measures to attract foreign investors has resulted in renewed interest in investment.
Kuwait with over 6% of the world’s oil reserves has for many years attracted significant levels of foreign investment in this and related industries. Recent changes to foreign investment laws are intended to encourage increased foreign investment and diversification of the economy, streamline administration, provide taxation incentives and relax certain ownership restrictions.
Lebanon has a long tradition of domestic free trade and investment policies with an economy characterised by freedom of exchange and transfers, which is based on private initiative. Lebanon has for many years attracted significant levels of foreign investment in many industries.
Oman, with its long history as a trading location and its oil based natural resources, has been a destination for foreign investment for many years. Like other countries in the region, efforts are underway to diversify the economy and government revenues away from petroleum. These drivers will likely result in continued changes to company, investment and taxation laws.
Oil and natural gas revenues have placed Qatar as one of the highest per-capita income countries, as well as one of the fastest growing economies. The establishment of the Qatar Financial Centre, and the progression of company, capital markets and taxation laws over the recent years are clear evidence of the concerted effort to attract investors to Qatar across a range of sectors.
The Kingdom of Saudi Arabia (“KSA”) is the world’s largest oil producer and exporter, and controls the world’s second largest hydrocarbon reserves. It is the only Arab country to be part of the G-20 major economies, The Organization of Islamic Cooperation and OPEC. In addition to its global standing there are substantial business opportunities stemming from a population with relatively high income levels.
As a place to do business, and as a hub for the region and beyond, the United Arab Emirates (UAE) continues to be increasingly important, relevant and attractive to businesses from around the world. The new company law reforms make this guide timely. The reforms include formal recognition of holding companies and simplifies the company registration process.
Mark Schofield
Tax and Legal Services Leader, PwC Middle East
Tel: +971 (0)4 304 3100
Email
