The United Arab Emirates, represented by Ministry of Finance (MoF), signed yesterday an agreement with Mexico to avoid double taxation on income at the Ministry’s headquarters in Abu Dhabi. This agreement aims to strengthen mutual economic and trade relations and to develop investments between the two countries, where Mexico is currently the head of the G-20 countries.
On behalf of the UAE, HE Younis Haji Al Khouri, Undersecretary of MoF, signed the agreement, whilst the Mexican Ambassador to the UAE, Francisco Alonso, signed it on behalf of Mexico; in the presence of HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF and Dr. Hamed Nasr, Economist at MoF.
The agreement included several financial and tax benefits for investments of the public and private sectors in the UAE, which allows the establishment of a strategic cooperation and integration with Mexico and other countries of Latin America. Mexico is considered one of the most important emerging economies at the level of Latin American countries, and one most prominent countires included in the global index of government bonds.
Commenting on signing the agreement, HE Younis Haji Al Khouri, Undersecretary of MoF, emphasised the importance of establishing strong commercial and economic relations between the UAE and Mexico through improving the investment climate and the exchange of expertise and partnerships between the public and private sectors of both countries.
Furthermore, HE Al Khouri shed light on the importance of the agreement as one of the main legal pillars and mechanisms of increasing the flow of investments, developing trade and tourist exchanges, and promoting the air transport industry in both countries. This agreement will also ensure a privileged position for the UAE’s economy in all Latin American countries for its recognised infrastructure, monetary capabilities and fiscal policies that attract direct foreign investments.
In this context, HE Al Khouri highlighted the 67 concluded agreements to this day to avoid double taxation with 27 European countries, and 10 of the Commonwealth of Independent States (CIS), 9 Arab countries and 13 Asian countries in addition to 5 African countries, along with all of New Zealand, Canada and Mexico. These agreements included the leading trading partners of the UAE in different continents.
The Mexican economy is witnessing a steady growth as it is currently one of the most important emerging economies. Mexico is considered one of the largest countries in Latin America in terms of car manufacturing. It is also one of the few countries in Latin America that is included in the global benchmark for government bonds, which includes a list of major global economies that circulate government debt bonds.