Isle Of Man Cements Closer Business Ties With Gulf Region

by Amanda Banks, Tax-News.com, London

21 March 2006

In common with the UK's Channel Island dependent territories, the Isle of Man has been undertaking an ongoing business initiative in recent months designed to foster closer business links with the Gulf region, particularly in the areas of e-commerce and financial services.

A 30-strong delegation led by Isle of Man Finance, comprising representatives from the Government and the private sector recently visited the rapidly growing commercial centre of Dubai in the United Arab Emirates - widely recognised as the Middle East's premier financial services centre and a trading hub bridging the gap between east and west.

Memoranda of Understanding governing banking, investment and insurance services, were signed during an earlier visit in 2005 headed by Chief Minister Donald Gelling. These MoU also provide for businesses to relocate to the Isle of Man for disaster recovery purposes.

"Dubai is one of the fastest growing business centres in the world," observed Tim Craine, the Treasury’s Director of E-Business and Space Commerce.

"This memorandum allows certain functions of a regulated company to be moved to the Isle of Man for a period of 30 days, which can be extended to 60 days on application," Mr Craine explained.

The delegation visited Dubai Internet City, a purpose built facility geared to accommodating new technology businesses, including Microsoft, Oracle, Dell, Siemens and Nokia.

Launched in February 2000 by Dubai's then ruler Sheikh Maktoum bin Rashid al-Maktoum, the Internet City is a free-trade zone for electronic commerce and technology.

The free zone authority oversees the establishment of the necessary infrastructure at the zone, licenses companies wishing to set up shop there and leases land and property to them for up to 50 years.

Companies are allowed 100 per cent foreign ownership in the zone. Goods imported to the zone and products for export are exempt from custom duties and companies are exempt from taxes, including income tax.

Earlier this month, a 30-strong delegation from Jersey, which included senior representatives from the States of Jersey, Jersey Finance, the Jersey Financial Services Commission, and senior Finance Industry practitioners, undertook a visit to the Gulf region to cement growing business ties.

The delegation held meetings with members of the finance and legal professions in Bahrain, Qatar, Abu Dhabi and Dubai.

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