According to a statement from the Seychelles Ministry of Finance, issued on Monday, the agreement was signed on September 19 by Seychelles Minister for Finance, Danny Faure, and Dr Mohammed Khalfan Bin Khirbash, the UAE's Minister for State Finance and Industry.

As well as further strengthening the existing economic relationship between Seychelles and the UAE, the ministry said the new agreement would now provide "certainty with regard to taxes payable on incomes generated from investments made between the two countries".

"It also provides an inducement to nationals of both countries to focus their attention on increasing trade, investment and employment opportunities," the statement added.

The Seychelles government sees such treaties as being an important part of its scheme to develop as a key financial hub in the Indian Ocean. It recently concluded double tax agreements with Qatar - which followed a visit by Seychelles President James Michel to the oil-rich Middle Eastern emirate earlier this year - and Cyprus.

The country also has DTAs in force with Belgium, China, South Africa, Indonesia, Thailand, Oman, Malaysia, Namibia and Zimbabwe, and is actively negotiating more treaties with a number of its trading partners.