United Arab Emirates Welcome Continued Globalisation

by Lorys Charalambous, Tax-News.com, Cyprus

05 October 2001

According to reports, development in the United Arab Emirates continues apace, and businesses within the UAE, once wary of foreign investment in the country, are opening up further to the possibilities of increased globalisation.

With the announcement that over 730 new multi-storey buildings and 3,151 other buildings are under construction in Dubai, including 43 storey tower costing Dh 135 million, and recent government statements on the possibility of allowing foreign banks to establish headquarters in the UAE, various jurisdictions, for example Dubai, look set to become regional hubs in financial and e-commerce terms very shortly.

One sticking point, especially in the current climate, is the jurisdiction's inclusion on the FATF blacklist of countries deemed 'uncooperative' in the fight against money laundering. However, the Chairman of the UAE Central Bank, Sultan al-Suwaidi, has hit back at claims that the UAE is uncooperative, arguing that inclusion on the list does not indicate a prevalence of money laundering, merely the lack of laws to prevent it.

Because of strict visa regulations and the limited market in which illegal operations can be conducted, Al-Sawaidi said recently, money laundering was not such a worry to the authorities. However, in the interests of continuing investment in the region and good international relations, the Central Bank Chairman announced last month that legislation would soon be introduced prohibiting money laundering.

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