H.E. Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, affirmed that the UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability. He noted that banks, financial institutions, and insurance companies across the country are operating normally and continue to deliver their services to customers and the public efficiently and without disruption nationwide.

A Legacy of Trust and Stability Spanning More Than 53 Years

For more than 53 years, the Central Bank of the United Arab Emirates has built a distinguished legacy of achievements. Guided by the wise vision of the UAE’s leadership, the Central Bank has played a pivotal role in safeguarding the resilience, strength, and stability of the nation’s financial and banking system.

Despite the successive geopolitical developments witnessed across the region during this period, the Central Bank and the UAE’s banking and financial sector have consistently demonstrated a strong capacity for resilience, adaptability, and sustained growth. This has further reinforced the UAE’s position as a trusted and secure destination and a leading financial hub at both the regional and global levels.

This enduring legacy reflects the strength of the foundations upon which the UAE’s financial and banking system has been built, grounded in sound governance, institutional discipline, financial sector diversification, proactive risk management, and a high level of preparedness to respond effectively to regional developments.

Strength of the Banking Sector and Robust Financial Soundness

The UAE’s banking and financial sector continues to maintain very strong levels of capital adequacy and liquidity. The capital adequacy ratio currently stands at 17%, while the Liquidity Coverage Ratio exceeds 146.6%, both significantly above the regulatory thresholds recommended by international supervisory bodies and global financial institutions.

In addition, total assets of the UAE banking and financial sector now exceed AED 5.42 trillion, reflecting the scale, resilience, and strength of financial institutions operating in the country, as well as their capacity to meet obligations and sustain support for economic activity under various conditions.

I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability. These systems are supported by advanced operational and technological frameworks that ensure the seamless, secure, and uninterrupted functioning of banking and financial services.

Operational Readiness and Risk Management

Financial and banking institutions operating in the UAE implement advanced frameworks for risk identification, risk management, and business continuity in line with leading international standards and best practices. This further strengthens their capacity to address potential developments and emerging challenges with agility and resilience.

The Central Bank of the UAE continues to maintain close coordination with relevant authorities and financial institutions to closely monitor developments, ensuring full operational readiness and the uninterrupted provision of banking and financial services across the country.

Continuous Supervision and Prudential Policy Framework

In line with our supervisory and regulatory mandate, we continuously monitor key indicators of financial stability and liquidity across the banking and financial sector. We also conduct regular assessments and stress-testing exercises to ensure the continued soundness and resilience of the financial system.

The Central Bank also maintains a comprehensive framework of prudential and monetary policy tools that enables it to take timely and appropriate action whenever necessary to safeguard financial stability and reinforce confidence in the banking and financial sector. The Central Bank has consistently fulfilled this role throughout the various circumstances experienced across the region.

Reaffirming Commitment

In conclusion, I reaffirm the Central Bank of the UAE’s unwavering commitment to closely monitor developments, maintain full operational readiness, and provide the necessary support to safeguard the achievements realized over more than five decades of progress and prosperity, while continuing to contribute to the UAE’s sustainable development journey.

Overview of Dubai’s Tax System

Dubai’s tax system is one of the most business-friendly in the world, characterized by low tax rates and various incentives designed to attract foreign investment. The emirate’s tax policy is guided by the broader UAE framework, which emphasizes minimal direct taxation and an open, competitive economy.

Corporate Tax

One of the most attractive features of Dubai’s tax system is the absence of corporate tax for most businesses. This policy has played a crucial role in establishing Dubai as a global business hub. However, there are exceptions, primarily in the oil and gas sector and certain branches of foreign banks.

1. Oil and Gas Sector: Companies involved in the extraction and processing of oil and gas are subject to corporate tax rates that can go up to 55%. This high tax rate is reflective of the sector’s significant profitability and strategic importance to the UAE economy.
2. Foreign Banks: Branches of foreign banks operating in Dubai are subject to a corporate tax rate of 20%. This taxation ensures that foreign financial institutions contribute to the local economy while benefiting from the business environment.

Despite these exceptions, the vast majority of businesses in Dubai enjoy a corporate tax-free environment, which significantly reduces operational costs and enhances profitability.

Value Added Tax (VAT)

In January 2018, the UAE introduced a Value Added Tax (VAT) at a standard rate of 5%. This move marked a significant shift in the region’s tax policy, aimed at diversifying government revenue sources away from oil dependence.

1. Scope: VAT applies to most goods and services, including imports. Businesses with an annual turnover exceeding AED 375,000 are required to register for VAT. There is also a voluntary registration threshold of AED 187,500 for businesses that do not meet the mandatory registration threshold but wish to register.
2. Zero-rated and Exempt Supplies: Certain goods and services are zero-rated, meaning VAT is charged at 0%, and businesses can still reclaim input VAT. These include exports, international transportation, and healthcare services. Additionally, some supplies are exempt from VAT, such as certain financial services and residential real estate leases.
3. Compliance: Businesses must adhere to strict compliance requirements, including maintaining accurate records, issuing VAT-compliant invoices, and filing regular VAT returns. Non-compliance can result in significant penalties.

Customs Duties

Dubai, as part of the UAE, is a member of the Gulf Cooperation Council (GCC) Customs Union. As such, a common customs duty rate of 5% applies to most imported goods. However, there are exceptions, including duty-free treatment for goods imported into free zones and goods with preferential treatment under trade agreements.

1. Free Zones: Dubai’s numerous free zones, such as Jebel Ali Free Zone (JAFZA) and Dubai Airport Free Zone (DAFZA), offer exemptions from customs duties on goods imported into these zones. This incentive is a major draw for businesses engaged in manufacturing, logistics, and re-export activities.
2. Preferential Trade Agreements: The UAE has entered into several trade agreements that provide preferential customs duty rates for certain goods originating from partner countries. These agreements aim to enhance trade relations and economic cooperation.

Personal Income Tax

Dubai stands out globally for its lack of personal income tax. Individuals working and residing in Dubai do not pay tax on their salaries or other personal income. This tax-free environment is a significant attraction for expatriates, contributing to the emirate’s diverse and skilled workforce.

1. Other Taxes on Individuals: While there is no personal income tax, individuals may be subject to other taxes and fees, such as municipality taxes on rental properties (5% of the annual rental value for residential properties and 10% for commercial properties) and excise taxes on specific goods like tobacco, energy drinks, and carbonated beverages.

Real Estate Taxes

The real estate sector in Dubai is a key driver of the economy, and the tax regime reflects the government’s support for this sector.

1. Registration Fees: When purchasing property in Dubai, a registration fee of 4% of the property’s value is payable to the Dubai Land Department. This fee is typically split equally between the buyer and the seller.
2. Rental Income: There is no tax on rental income for individuals. However, corporate entities earning rental income may be subject to corporate tax if they fall within the taxable categories, such as branches of foreign banks.
3. Value Added Tax (VAT): The sale of commercial property is subject to VAT at the standard rate of 5%. However, the sale of residential property is generally exempt from VAT unless it is a newly constructed property being sold for the first time, which is zero-rated.

Excise Tax

In 2017, the UAE introduced excise taxes to curb the consumption of harmful products and generate additional revenue. The excise tax rates are as follows:

1. Tobacco Products: 100%
2. Energy Drinks: 100%
3. Carbonated Drinks: 50%
4. Electronic Smoking Devices: 100%
5. Sweetened Beverages: 50%

The introduction of excise taxes reflects the government’s commitment to promoting public health and environmental sustainability.

Social Security Contributions

While there is no personal income tax, UAE nationals and employers are subject to social security contributions.

1. Emirati Employees: UAE nationals contribute 5% of their gross salary to the General Pension and Social Security Authority, while employers contribute 12.5% for employees in Dubai (15% for federal government employees).
2. Expatriate Employees: Expatriates are not required to make social security contributions. However, employers must provide end-of-service benefits, which function similarly to a pension scheme, based on the employee’s length of service.

Economic Substance Regulations (ESR)

In response to international standards and to combat tax evasion, the UAE introduced Economic Substance Regulations (ESR) in 2019. These regulations require certain businesses to demonstrate substantial economic presence in the UAE by carrying out core income-generating activities.

1. Scope: The ESR applies to entities engaged in relevant activities such as banking, insurance, investment fund management, lease-finance, headquarters, shipping, holding company, intellectual property, and distribution and service centers.
2. Compliance: Affected entities must file annual notifications and reports with the relevant regulatory authority, demonstrating compliance with economic substance requirements. Non-compliance can result in significant penalties.

Transfer Pricing

As part of its commitment to international tax standards, the UAE introduced transfer pricing regulations that align with the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan. These regulations apply to transactions between related parties and require businesses to ensure that their transactions are conducted at arm’s length.

1. Documentation: Businesses must maintain comprehensive documentation to support their transfer pricing policies and demonstrate compliance with the arm’s length principle.
2. Penalties: Failure to comply with transfer pricing regulations can result in substantial penalties and increased scrutiny from tax authorities.

Recent Developments

Dubai’s tax landscape is continually evolving to align with global standards and enhance its competitiveness as a business hub. Recent developments include:

1. Introduction of Corporate Tax: The UAE announced plans to introduce a federal corporate tax starting in 2023. The standard corporate tax rate will be 9%, with exemptions for small businesses and certain sectors. This move aims to diversify government revenue and align with international tax standards.
2. Enhanced Compliance: The UAE is enhancing its tax compliance framework, with increased emphasis on transparency, reporting, and enforcement. Businesses are encouraged to stay updated on regulatory changes and ensure timely compliance.

Conclusion

Dubai’s tax system is designed to attract businesses and individuals by offering a favorable tax environment characterized by low direct taxes and various incentives. The absence of personal income tax and corporate tax for most sectors, combined with the strategic use of VAT, customs duties, and excise taxes, makes Dubai an attractive destination for investment and talent.

However, the introduction of corporate tax and enhanced compliance measures indicate a shift towards greater alignment with global tax standards. Businesses operating in Dubai must stay informed about these changes and adapt their strategies to ensure compliance and optimize their tax position.

Overall, Dubai’s tax regime continues to support its vision of becoming a leading global business hub, fostering economic growth, innovation, and sustainability.

In keeping with Emirates commitment to providing an exceptional customer experience onboard, the First and Business Class kit bags feature new trending pantones and designs, along with Bulgari fragrances encapsulated in bottles designed exclusively for Emirates. The new range presents eight different collectible bags across First and Business Class, in a classic tan and black fabric, contemporary silver with lilac, or understated black with lilac highlights.

New Business Class Amenity Kits

Featuring one of 2023’s most stylish pantones – silver, the Business Class range offers two bag shapes, a pouch and classic toiletry bag silhouette, both made from vegan leather in a standout metallic silver shade with lilac accents. Each kit features several Bulgari products, including the iconic fragrance BVLGARI OMNIA Amethyste Eau de Toilette. The scent opens with the bright and citrusy facets of pink grapefruit and green sap accords, while the heart reveals rich Damascena Rose Absolute, accompanied by a warm, woody trail where the sweetness of a heliotrope accord melts into the vibrations of solar wood notes. Passengers will also receive a complementary Omnia Amethyste face emulsion and body emulsion to keep their skin hydrated, alongside a rich Bulgari lip balm, and some comfort essentials including a dental kit, double mirror made from a sustainable wheat straw material, deodorant, tissues and a foldaway hairbrush.

Two contemporary classic black fabric bags in varying shapes with tan vegan leather accents will appeal to those who prefer a masculine style. The fragrance included in these kits is BVLGARI POUR HOMME Eau de Toilette, a woody and floral musky scent in which notes of Darjeeling tea, water lily, and guaiac wood blend flawlessly to create a soothing effect. Inspired by the same iconic scent, a complementary Bulgari after shave balm and body emulsion are included, alongside a Gillette razor, shaving foam, a dental kit, deodorant, tissues and a foldaway hairbrush made from sustainable wheat straw.

New First Class Amenity Kits

In First Class, the luxurious range features 4 individual collectible bags, two in black vegan leather with lilac accents, and two in a high-quality black fabric, some with tan vegan leather accents – both containing an array of personalised luxury products.

In the black and lilac kits, encased within a soft Bulgari pouch is the new engraved gold Bulgari mirror – a keepsake piece exclusively crafted for Emirates, alongside a 30ml exclusive bottle of BVLGARI LE GEMME Desiria Eau de Parfum. This rich and sophisticated floral rose scent features violet jade, magnolia and radiant rose petals. The fragrance is complemented by a matching face and body emulsion. The kit also includes a dental kit, refreshing cleansing towel, deodorant, tissues and foldaway hairbrush so that First Class passengers arrive to their destination fully refreshed.

In the black and tan kits, passengers will enjoy a 30ml exclusive bottle of BVLGARI LE GEMME Gyan Eau de Parfum -a sophisticated, woody floral fragrance expressed through Patchouli and Jasmine Sambac. The scent profile reveals that ‘patchouli embodies the velvety sapphires of Kashmir, while jasmine sambac is reminiscent of sumptuous Himalayan skies’. The kit also features a hydrating Bulgari Le Gemme Gyan after shave balm and matching body emulsion, cleansing towel, Gillette razor, shaving foam, dental kit, deodorant, tissues and foldaway hairbrush.

Onboard A380 aircraft, First Class passengers can also use the Onboard Shower Spa which offers a separate range of luxury products – organic and sustainable Voya, from Ireland. First Class passengers can also find a skincare set from luxury Swedish brand Byredo, in their private suites.

Economy and Premium Economy passengers can also look forward to new collectible amenity kits, to be launched towards the end of the year.

flydubai, the Dubai-based airline, announced today its new agreement with Smartwings, the Czech Republic-based airline, to wet lease four Next-Generation Boeing 737-800 aircraft between 17 October 2023 and 16 April 2024.

The Aircraft, Crew, Maintenance and Insurance (ACMI) agreement with Smartwings will see four-leased aircraft support flydubai’s fleet of 79 Boeing 737 aircraft, enabling the carrier to add more capacity for its passengers and cater to demand for travel during busy travel periods.

Commenting on the agreement, Ghaith Al Ghaith, Chief Executive Officer at flydubai, said: “we are pleased to confirm this new wet lease agreement with Smartwings, this marks our third agreement with the carrier since 2019. Smartwings, an IOSA (IATA Operational Safety Audit) certified company, is well-experienced in ACMI agreements. The leasing of four additional aircraft will enable us to maintain our operational efficiency, add capacity around our network and minimise any potential disruption to our passengers during one of the busiest travel periods of the year.”

flydubai currently operates a single-fleet type of Boeing 737 aircraft that includes 30 Next-Generation Boeing 737-800, 46 Boeing 737 MAX 8 and three Boeing 737 MAX 9.

“We are delighted to have signed our third ACMI wet lease agreement with flydubai. This cooperation, which we greatly value, will allow us to achieve a higher utilisation of our aircraft and provide our qualified employees with more opportunities during the winter season,” says Jiri Juran, Chairman of the Board of Directors, Smartwings.

The all-Economy Class aircraft will operate on select routes on the flydubai network including Chattogram, Colombo, Dhaka, Karachi and Muscat. ​

flydubai passengers who are booked to travel on a flight operated by Smartwings will be notified prior to their travel date. For further information, passengers can visit flydubai.com.

Smartwings has been on the airline market for 26 years. Smartwings is the largest Czech airline belonging to Smartwings Group. Smartwings operates scheduled flights, charter flights, private flights of business jet and ACMI leases. Besides scheduled and charter flights, Smartwings also provides a wide range of special flights for renowned international companies, major humanitarian, and sports organizations worldwide. Smartwings Group aircraft fly to more than 200 airports around the world. Smartwings has repeatedly passed the IATA Operational Safety Audit (IOSA). Smartwings Group operates a fleet of 43 airplanes.

e& today announced its consolidated financial results for H1 2023 and that it has signed a binding agreement with PPF Group (“PPF”) to acquire a controlling stake (50% + 1 share economic stake) in PPF Telecom Group’s (“PPF Telecom”) assets in Bulgaria, Hungary, Serbia, and Slovakia. PPF Telecom is the telecommunications division of PPF.

e&’s consolidated revenues during the H1 2023 reached AED 26.6 billion a YoY increase of 1.1 per cent. Consolidated net profit recorded AED 4.7 billion while consolidated EBITDA reached AED 12.8 billion, resulting in an EBITDA margin of 48 per cent.

In the UAE, etisalat by e& recorded 13.9 million subscribers an increase of 5.1 per cent compared to the same period of last year, The Group’s aggregate subscribers reached 165 million, a YoY increase of 3.1 per cent.

H.E. Jassem Mohamed Obaid Bu Ataba Alzaabi, Chairman, e&, said: “e&’s performance during the first half of the year reinforces the resilience of our business model despite the challenging global macroeconomic environment. This was also the result of our teams’ relentless efforts to remain committed to our vision and drive sustainable growth, making a positive change in the societies we serve while adding value to our shareholders.

Today we are also delighted to announce e&’s strategic expansion into the European market. With this move, we join forces with PPF to build and expand our international footprint in the attractive Central and Eastern Europe region and beyond. It is the next step of our transformation into a global technology group, offering e& multiple avenues to roll-out its leading suite of B2B and B2C digital products in the CEE with significant synergies.

The acquisition aligns with e&’s strategic ambition to accelerate international growth and diversify geographically. This represents an unparalleled opportunity to establish a strong presence and foster development within the dynamic CEE region. The PPF Telecom portfolio, spanning four countries, exhibits a well-balanced structure, underpinned by robust macroeconomic fundamentals and stable currencies. The countries of its operations are characterised by regulatory stability, healthy competition, and highly attractive returns, positioning them among the most promising in Europe. e& will consolidate more than 10 million subscribers from this acquisition post-closing.

We achieved remarkable progress in our strategic focus areas, supported by strong performance in our core telecom business, increased demand for our innovative digital services and solutions, and a commitment to deliver cutting-edge solutions that accelerate digital transformation in the communities we serve. During the period, we also made strategic investments and fostered partnerships that will drive our growth in the coming years, pushing us to seize new opportunities in the fast-evolving digital landscape.

In line with the UAE leadership’s vision, we are committed to continuing progress and development and enhancing our confidence in the added value e& provides. We are resolute in our commitment to spare no effort in delivering cutting-edge technologies and world-class services that will not only shape the digital future but also turn the vision of sustainable socio-economic growth into a tangible reality. With the utmost dedication, we aim to play an instrumental role in fostering a knowledge-based economy, cementing our position as a driving force for innovation and progress.”

Hatem Dowidar, Group CEO, e&, said: “Over the past six months, we have demonstrated a strong sense of resilience and adaptability. Our relentless focus on excellence and innovation has allowed us to thrive in the dynamic landscape of the telecommunications and technology sectors, maintaining our growth momentum.

Our consolidated revenues during the first half of the year reached AED 26.6 billion, with a year-over-year increase of 1.1 per cent. Consolidated net profit recorded AED 4.7 billion while consolidated EBITDA reached AED 12.8 billion, resulting in an EBITDA margin of 48 per cent. This positive performance has been driven by our core businesses and our new business verticals, which have seen an increase in demand domestically and internationally.

This growth was also fueled by harnessing the power of our technological prowess, leveraging our expertise to forge new paths, disrupt industries, and transform the way we do business on a global scale. Our commitment to pushing boundaries and embracing change has positioned us as a true trailblazer in the digital era.

Our success has been driven by the combination of our innovative, customer-centric strategies and the unwavering dedication of our teams, along with our investment in world-leading infrastructure and cutting-edge technologies that consistently serve as the foundation of our achievements.

I would like to express my gratitude to our dedicated employees, whose relentless efforts and innovative spirit remain the driving force behind our progression. Similarly, we thank our loyal customers and stakeholders for their continued faith in our vision. Looking ahead, I remain confident that our commitment to connecting people, businesses, and communities through technology will enable us to provide continuous growth and value for our customers and stakeholders in the years to come.”

Key highlights and developments for H1 2023

e& to expand into Central and Eastern Europe through investment in majority stake in PPF Telecom

The perimeter will comprise of the Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and O2 Slovakia operations, with more than 10 million subscribers and leading positions in their respective markets, as well as the CETIN and O2 Networks infrastructure businesses in these countries.

The upfront consideration for the acquisition is €2,150 million. The transaction is also subject to up to €350 million in earn-out payments to PPF if the PPF Telecom assets exceed certain financial targets within the three-year period after closing and is subject to a claw back if such financial targets are not achieved.

The PPF Telecom’s infrastructure businesses in each of these four countries are fully carved out and managed independently of the service companies. Through the investment, e& will own a 50% + 1 share economic stake in both the service and infrastructure companies.

e& and PPF aim to realise significant scope for synergies between the two groups, with sizeable opex and capex savings and multiple opportunities for the roll-out of the leading suite of e&’s B2B and B2C digital products in CEE.

The partners will retain current PPF Telecom CEO Balesh Sharma and ensure continuity of operations while drawing on the broad expertise of PPF Telecom’s teams in their markets.

The acquisition will be under e& international, the telecom vertical of e& in global markets. The acquisition will deliver on three key pillars of the e& international strategy: expanding the geographic footprint, promoting e& digital services, and increasing the scale and scope of synergies across e& operating companies.

e&

The Group signed a binding agreement with Uber Technologies, Inc (“Uber”) and its subsidiary Careem to acquire a majority stake in Careem’s Super App spinout with an investment of $400 million, as part of e&’s strategic ambition to expand its digital consumer offering and accelerate its transformation into a global technology group.

e& has successfully completed the acquisition of ServiceMarket, expanding the range of digital services on the Smiles online marketplace and offering more than 30 everyday services to its customers.

It has further strengthened its global positioning this year, being recognised as the most valuable telecoms brand portfolio in the MEA region, worth over $14 billion, according to the 2023 Brand Finance Global 500 Report.

As part of its continued efforts to deliver a world-class experience to customers, e& partnered with Indosat to explore ways to service customers in Indonesia, UAE, and beyond, empowering them to use quality International Direct Dialing (IDD) services.

e& has taken further steps in using cutting-edge technologies by partnering with E-Space to develop satellite-based cloud-native digital and IoT solutions optimised with edge AI to maximise the value of borderless smart connectivity and digital solutions across land, sea, and air applications.

The Group has also partnered with Intel to focus on the deployment of edge data centres with a focus on a net zero carbon footprint, incorporating the latest 4th generation Intel Xeon Scalable processors.

e& collaborated with the UAE Ministry of Education (MoE) to offer interactive workshops to students, parents, and teachers from both public and private schools, as part of the Group’s commitment to the digital empowerment of communities. These initiatives are part of e&’s ongoing efforts to support the education sector in the UAE and build on the Group’s previous collaboration with MoE, where virtual cybersecurity awareness sessions were held for schools to promote a cybersecurity culture and enhance future generations’ digital resilience.

Etisalat Academy by e& partnered with EarthLink to establish the EarthLink Academy, aimed at excellence in businesses, leadership and talent development, knowledge transfer, and vocational training. The comprehensive training programme will cover the areas of telecom and fibre-to-the-home (FTTH) network systems, ensuring the delivery of high-quality training programmes to meet the market’s resource needs.

As part of its solid commitment to promoting gender diversity, empowering women, and encouraging sustainable business practices, e& collaborated with Nokia and UN Women to conclude the first ‘Women in Leadership’ programme, designed to increase the number of women in decision-making roles within the tech sector and integrate gender-balanced approaches to innovative business opportunities and technology solutions.

The Group has also remained on track to meet its 2030 net-zero target with the implementation of climate action projects in its UAE operations. etisalat by e&’s first deployments of energy-efficient radio equipment have reduced energy consumption by 52 per cent compared to previously deployed radio equipment. The reduction in energy consumption is equivalent to 7.6 tonnes of CO2 emissions per site per year for high-level sites configured with LTE carriers.

etisalat by e&

e&’s telecom arm etisalat by e& demonstrated strong performance during the first half of the year with continuous increase in subscribers across both mobile and fixed services leading to a total of 5.1 per cent subscriber growth compared to the same period last year, while overall revenue grew across all categories by 5.8 per cent during the second quarter this year.

Mobile subscribers grew by 5.7 per cent compared to the same period last year due to the positive response from customer propositions like Emirati Freedom and Freedom Live, and special prepaid promotions successfully implemented for all subscribers.

Fixed revenue grew by 2.1 per cent during the first half and 1.8 per cent during the second quarter compared to the same period last year, driven by new propositions such as Business Pro and home wireless services. In the UAE, EBITDA and net profit margins remain strong at over 51 and 26 per cent respectively during the first half of 2023 – thanks to the focus on profitable revenue growth and driving operational efficiency with continued cost optimisation.

etisalat by e&’s strategy to diversify into new digital products and services contributed to the acceleration of growth of its online marketplace ‘Smiles’ achieving more than 3.5 million subscribers while its super app GoChat witnessed more than 5.5 million downloads.

etisalat by e& accelerated efforts in 5G deployments and investments have significantly contributed to and solidified UAE’s position as a global leader in fixed and mobile speeds. Leveraging a visionary approach and relentless pursuit of innovation, the UAE now dominates the second and first positions, respectively. This progress underscores the UAE’s emergence as a front-runner in delivering world-class fixed and mobile network services.

etisalat by e& maintained its position as the strongest telecoms brand across all categories in the MEA region this year, achieving a score of 89.1 out of 100 and an AAA rating. It was also ranked in the top three telecom brands globally according to the 2023 Brand Finance Global 500 report.

etisalat by e& successfully integrated ServiceMarket services, expanding the range of digital services on the Smiles online marketplace and offering more than 30 everyday services to its customers.

As part of its vision to digitally enable customers in their transformation journey, etisalat by e& partnered with ARAMTEC to help them capitalise on the digitisation and automation benefits of technology, empowering employees with cutting-edge tools to enhance their productivity, connectivity, and mobility.

etisalat by e& also announced the implementation of the first 5G SatComs in the region with the EUTELSAT QUANTUM satellite solution to extend 5G network capabilities on a software-defined satellite and to meet future applications that require higher throughput.

To provide the best innovative solutions, etisalat by e& opened a new Mobile Security Operation Centre (MSOC) in collaboration with the UAE Cybersecurity Council to provide business customers with real-time protection services to safeguard mobile phones from malicious attacks. etisalat by e& also deployed the private Microsoft Azure Multi-Access Edge Compute (MEC) solution for enterprises as one of the first operators in the MENA region.

To meet customers’ evolving needs in the changing business ecosystem, etisalat by e& launched new business postpaid plans with productivity tools, designed to meet the growing demand for data businesses where customers enjoy increased data allowances, enabling them to stay connected and productive wherever they go.

For SMBs, there was also the launch of the payment solution ‘uTap’ which aimed to simplify business operations, streamline payment processes, and embrace digital payment solutions.

With a significant emphasis on supporting the startup community, ‘Hello Business Pitch 2’ was held inviting ideators and start-ups to pitch their next big business idea, providing an innovative platform to support the growing entrepreneurial ecosystem in the country.

etisalat by e& continues to uphold its mandate of supporting Emiratisation, as demonstrated by employing more than 220 UAE nationals till date, in the second year of its partnership with Emirati Talent Competitiveness Council (“NAFIS”). etisalat by e&’s long-term strategy aims at investing in the next generation of leaders among UAE nationals, as evidenced by the Emiratisation percentage exceeding 53 per cent, one of the highest within its category in the UAE.

etisalat by e& also continued its Emiratisation efforts with the launch of the ‘National Programme’, an exclusive initiative that will support Emiratis in establishing their business supporting the UAE leadership’s efforts in promoting the growth of 100 per cent locally owned businesses and encouraging partnerships with the private sector.

Supporting the UAE leadership’s vision to instill the importance of tolerance and coexistence, etisalat by e& participated in the third edition of ‘Together in Emirates of Zayed’ and launched the ‘Five’ app exclusively designed for blue-collar workers using the ‘Five’ SIM.

e& international

e& international took a major step to elevate the digital experiences of the digital-native customers of Mobile Network Operators (MNOs) by launching digital sub-brands through their joint venture with Circles.

It also launched the ‘e& partner networks’ to support the growth of global telecom operators, offering access to market best practices, cutting-edge services, and the benefits of e&’s scale to telecom operators around the world.

Tunisie Telecom became the first company to join the ‘e& partner network’ programme, supporting the future growth of the Tunisian national operator.

e& international also launched a Centre of Excellence (CoE) for advanced analytics which leverages cutting-edge machine learning and AI solutions, to offer personalised use-cases to regional and global clients across telecom and other industries.

etisalat by e& in Egypt partnered with the Sovereign Fund of Egypt (TSFE) to launch a new fintech company, ‘Erada Microfinance’ with the aim of enabling a wide range of financial services for micro and small enterprises. In line with e&’s aim to enable a greener future, it deployed a Smart Connected Site solution, which will allow its subsidiary in Egypt to reduce fuel costs and CO2 emissions by up to 40 per cent as well as decrease reliance on fossil fuels.

PTCL and Vodafone have initiated a strategic collaboration to develop and deliver a full suite of end-to-end IoT services aimed at accelerating enterprise digital enablement and improving the adoption of connected services in Pakistan.

e& international maintained its leadership in customer experience, achieving the number one NPS position in most of its key markets.

e& life

e& life’s fintech arm and financial Super App e& money partnered with Mastercard to enable payments worldwide via an exclusive prepaid card, offering the flexibility and convenience of using both virtual and physical cards and becoming the first issuer supported by a telecom operator in the UAE.

evision, the media and entertainment arm of e&, acquired the exclusive MENA broadcast rights for the Documentary – King Charles III: A Road to the Throne. Following the coronation of King Charles III, the timing of the documentary’s release is impeccably aligned as a first-of-a-kind opportunity to watch exclusive footage from the ceremony.

It has also launched the 24/7 GolfLife channel to broadcast live golf in the region and has acquired exclusive MENA rights to the PGA TOUR, the DP World Tour, the Ryder Cup, the Presidents Cup, and cricket’s most anticipated event, the TATA Indian Premier League 2023.

evision successfully launched OTT platforms in Pakistan with SHOQ TV for PTCL and TWIST TV for Etisalat Egypt by e&. evision also secured a strategic agreement for STARZPLAY and e& OpCos with WATCH IT, a leading video-on-demand service for Arabic content.

e& enterprise

Leading the digital transformation journey across the business sector, e& enterprise made considerable achievements with acquisitions and strategic partnerships to deliver the best technologies that empower businesses across the region.

e& enterprise acquired a majority stake in Beehive, MENA’s leading peer-to-peer digital platform, to tap into opportunities in the Small and Medium Enterprise (SME) lending market. This also marked the next step in e& enterprise’s expansion, as the move demonstrates its commitment to opening new avenues of growth across the UAE and in the region, while enabling Beehive to scale its business and expand its offerings.

Staying committed to the UAE’s vision of becoming a global hub for future industries, e& enterprise IoT & AI partnered with Maxbyte Technologies to deliver cutting-edge solutions for Industry 4.0, leveraging both companies’ combined expertise and experience.

Keeping in line with e& enterprise’s mission to drive digital transformation for companies across industries, it implemented engageX solutions for Audi from Al Nabooda Automobiles to automate their customer service support over digital channels.

The company has also launched its Sustainability As-a-Service offering to help businesses in their sustainability journey by partnering with Microsoft to implement the Microsoft Sustainability Manager as a key component of the proposition.

Help AG, the cybersecurity arm of e& enterprise, launched its new SaaS platform UNIFY to integrate with the ever-evolving cybersecurity technology landscape and deliver a seamless, unified customer experience. It also expanded its presence to Egypt, in addition to setting up the first cyber defense centre in the region.

e& enterprise IoT & AI joined hands with Mohammed Bin Rashid Space Centre (MBRSC) with an aim to explore the opportunity to develop a commercial model to take MBRSC’s models and predictions to the market, enabling e& enterprise to leverage the space centre’s expertise in AI and predictive models, while the Centre will benefit from the former’s resources and capabilities.

e& enterprise was also recognised by IDC MarketScape CPaaS 2023 as one of the major players in the region.

e& capital

The tech investment arm of e& led a pre-series C round raising $10 million for almentor, a leading online video learning platform in Arabic. The proceeds will be used to accelerate almentor’s growth towards its goal of serving 10 million learners in the MENA region and use the funds to increase its investment in the B2C segment while expanding into Saudi Arabia.

The Money Supply aggregate M₂ climbed by 1.7%, from AED 1,823.7 billion at the end of April 2023 to AED 1,855.3 billion at the end of May 2023. M₂ rose due to an elevated M₁, and an AED 5.4 billion rise in Quasi-Monetary Deposits.

The Money Supply aggregate M₃ also soared by 1.2%, from AED 2,245.1 billion at the end of April 2023 to AED 2,272.7 billion at the end of May 2023. M₃ increased because of a raised M₂, overshadowing an AED 4.0 billion reduction in Government Deposits.

The Monetary Base grew by 3.4%, climbing from AED 600.7 billion at the end of April 2023 to AED 621.4 billion at the end of May 2023. The main drivers of this expansion of the Monetary Base were increases in Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE and Monetary Bills & Islamic Certificates of Deposit by 96.1% and 4.4%, respectively. These increases overrode the reduction in Currency Issued by 2.6% and in Reserve Account by 30.0%.

Gross banks’ assets, including bankers’ acceptances, rose by 1.7%, from AED 3,802.7 billion at the end of April 2023 to AED 3,868.9 billion at the end of May 2023.

Gross credit increased by 1.6% from AED 1,897.0 billion at the end of April 2023 to AED 1,927.7 billion at the end of May 2023. Gross Credit rose due to 1.7% growth in Domestic Credit and 0.7% rise in Foreign Credit.

Domestic Credit expanded because of 3.2% and 1.9% increases in credit to the Public Sector (Government Related Entities) and Private Sector, correspondingly. Whereas, credit to the overnment Sector and Non- Banking Financial Institutions declined by 0.8% and 1.7%, respectively.

Total Bank Deposits increased by 2.3%, rising from AED 2,350.9 billion at the end of April 2023 to AED 2,405.9 billion at the end of May 2023. The growth in Total Bank Deposits was due to increases in Resident Deposits by 1.5% and Non-Resident Deposits by 11.1%. Resident Deposits rose owing to increases in Private Sector Deposits and Non-Banking Financial Institutions’
Deposits by 2.3% and 1.9%, respectively. However, Government Sector deposits fell by 0.5% and Public Sector (Government Related Entities) Deposits decreased by 0.4%.

M 1 = Currency in circulation outside Banks + Monetary Deposits (current accounts and call accounts at banks).

M2 = M1 + Quasi-monetary Deposits (resident time and saving deposits in Dirhams and resident deposits in foreign currencies).

M3 = M2 + Government Deposits at banks operating in the UAE as well as at the Central Bank.

It’s the perfect time to update your wardrobe or finally get those things you’ve always wanted. From June 29th to September 3rd, all throughout the summer, the city’s stores will be slashing prices on the newest collections, offering a wide variety of trendy clothes, stylish furniture, and unique gifts.

Dubai Summer Surprises is much more than just a shopping; it’s an opportunity to create unforgettable memories with your family or friends. The festival offers a jam-packed calendar of events, featuring exciting prize giveaways, sensational concerts, captivating performances, and much more. Furthermore, throughout the entire summer season, you can take advantage of a plethora of offers and promotions, including the Kids Go Free program, which allows children up to 12 years old to enjoy complimentary stays in prestigious hotels, access to museums, amusement parks, and iconic city landmarks such as Burj Khalifa and The View at The Palm. Additionally, there are early bird deals available with advantageous prices and discounts on hotels, providing guests with the opportunity to save on their accommodations.

The 26th edition of this remarkable shopping festival will commence during the final weekends of the month, coinciding with Eid al-Adha, also known as the Feast of Sacrifice, one of the most significant religious holidays in the Muslim calendar.

Dubai Summer Surprises is supported by key sponsor RAKBANK MasterCard and Strategic partners which include: Al Futtaim Malls (Dubai Festival City Mall & Festival Plaza), Al Seef, Al Zarooni Group (Mercato Shopping Mall), AW Rostamani Group, Bluewaters, Citywalk, Emirates Airline, Enoc, Etisalat, Majid Al Futtaim (Mall of the Emirates, City Centre Mirdif, City Centre Deira), Nakheel Malls (Ibn Battuta Mall, Nakheel Mall, Dragon Mart 2, Palm West Beach and The View), The Beach and The Outlet Village.

For more information, visit @CelebrateDubai and @StyledByDubai on social media channels, and www.DubaiSummerSurprises.com.

The Dubai Department of Economy and Tourism (DET) aims to support the government in increasing the emirate’s competitiveness in the global economy and tourism in order to support the positioning of Dubai as the world’s leading commercial center, investment hub and tourist destination. As part of this task, DET directs efforts to further develop Dubai’s diversified, innovative and service-based economy, to attract the world’s best specialists and accelerate productivity growth. In addition, DET supports the vision of Dubai as the world’s best city to live and work in, promoting it and an excellent quality of life.

DET is responsible for planning, overseeing, developing and marketing Dubai’s business and tourism sectors. He is also responsible for licensing and classification of all types of businesses, including hotels, tour operators and travel agents. DET’s portfolio includes: Dubai Tourism and Commercial Marketing Corporation, Dubai Festivals and Retail, Dubai Industry and Export, Dubai Investment Development Agency (Dubai FDI) and Dubai SME, as well as Dubai College of Tourism, Dubai Calendar and Dubai Business Events.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said: “The remarkable growth in international visitation achieved by Dubai in the first quarter of 2023 demonstrates the city’s emergence as one of the key destinations leading the way in the rebound of the global tourism sector. This achievement has been made possible by the far-reaching vision of the leadership to transform Dubai into one of the world’s fastest-growing metropolises and the globe’s pre-eminent hub for travel, talent, entrepreneurship and investment. The Dubai Economic Agenda recently launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, charts an ambitious new path for Dubai to enhance its contributions to shaping the future of the global economy. The tourism sector is not only the strongest pillars of our economy but also a key enabler of Dubai’s distinctive role in the world as a bridge between markets, cultures and regions. In the years ahead, Dubai will continue to introduce new pathbreaking initiatives to offer a distinctive proposition for travellers and achieve its goal of becoming the world’s best place to live, visit, work and invest in.”

The latest industry results – announced at the 30^th edition of Arabian Travel Market, positions Dubai as the fastest recovering destination globally, achieving 98 % of pre-pandemic levels in Q1 2023, and exceeding the projection made by the United Nations World Trade Organisation that international tourist arrivals could reach between 80-95 % of pre-pandemic levels this year, especially in Europe and the Middle East. The number of visitors in Q1 2023 was just two percentage points short of pre-pandemic volume of 4.75 million tourists that arrived in Dubai in the first three months of 2019.

 Strong rebound

Dubai’s traditional source markets delivered solid tourism volumes during the first quarter of the year with key regions continuing to make an impact on international visitation, further underscoring the success of the city’s diversified multi-geographic strategy.

The majority of the regions have demonstrated significant increase in Q1 2023 compared to the same period in 2022 while four regions have fully recovered and surpassed Q1 2019 levels – CIS and Eastern Europe (48 % vs. Q1 2019), MENA (32 % vs. Q1-2019), Americas (9 % vs. Q1-2019 and Australasia 2 % vs 2019). Both South Asia and Western Europe are close to achieving pre-pandemic levels in terms of tourism volumes.

 Dubai’s hotel sector spearheads growth

Dubai hotels saw a surge in performance during the first quarter of 2023. Average occupancy for the sector during the January-March period stood at an impressive 83 %, making it one of the highest in the world, and almost on par with the 84 % occupancy recorded in Q1 2019. This achievement is particularly notable given a 26 % increase in room capacity since then. By the end of March 2023, the city’s hotel sector had a total of 148,877 rooms in 814 hotel establishments compared to 118,039 rooms in 717 hotel establishments in 2019. Continued domestic and international investment into the sector helped further boost hotel inventory, with the first quarter of 2023 seeing a 6 % increase in the total number of hotels and rooms compared to the same period in 2022.

The hotel sector outperformed pre-pandemic levels across all other hospitality metrics. During the first three months of the year, Dubai hotels collectively provided 10.98 million Occupied Room Nights, a YoY growth of 7 % and a 27 % increase compared to the pre-pandemic period of Q1 2019, which registered 8.63 million Occupied Room Nights. The ADR of AED607 during the first three months of the year surpassed the ADR of 2019 (AED498), a 22 % growth while RevPAR of AED504 in Q1 2023, surged by 21 % compared to the first three months of the pre-pandemic period of 2019 (AED 417). The robust performance of the hotel sector is also evident by the fact that average length of stay by guests increased to four nights compared to 3.5 nights, a 14 % increase over the same period in 2019, highlighting the city’s appeal for longer-stay travellers.

Spearheading sustainability initiatives

As Dubai shifts towards a more advanced, inclusive, long-term approach to sustainable growth, sustainability is becoming increasingly important as an opportunity and driving force for growth, as more and more travellers seek out sustainable destinations. Sustainability is a core component of Dubai’s development strategy, and hosting global events like COP28 will provide an exceptional opportunity to highlight the Dubai Sustainable Tourism (DST) initiative designed to enhance the sustainability of the tourism sector and contribute to broader clean energy and sustainable development objectives. A key DST initiative is the Dubai Can campaign has successfully reduced the number of single-use plastic water bottles by over 7 million in just one year since its launch in February 2022.

With the support of its stakeholders and partners, Dubai is committed to continuously offering novel and distinctive experiences for discerning global travellers. These developments will largely be driven by the Dubai 2040 Urban Master Plan, which includes over 100 % expansion of tourism attractions, providing new areas for investment and increasing diversity of attractions and experiences for both residents and visitors. Dubai will also continue to showcase its offerings in various segments, including ecotourism, food tourism, wellness tourism, cruise tourism, sports tourism and destination weddings. DET will further enhance its Gastronomy Always on Campaign as Dubai drives growth in the hospitality and F&B sector, focusing on the four pillars of diversity, value for money, authenticity and experience.

Leveraging its position as an international events destination to draw more visitors to its MICE, business and leisure events, Q1 2023 saw Dubai hosting an extensive line-up of events including the Dubai Shopping Festival, the flagship festival of the city’s year-round Retail Calendar, Art Dubai, Emirates Airline Festival of Literature, Dubai Duty Free Tennis, the Dubai World Cup, Dubai International Boat Show, World Government Summit, as well as Gulfood, the world’s largest annual food & beverage exhibition, which hosted a record 5,000 plus exhibitors from over 125 countries. In addition to COP28, other major events that are set to create greater visibility for Dubai around the world this year are the family summer extravaganza, Dubai Summer Surprises, Dubai Esports and Games Festival and Dubai Fitness Challenge.

The city investment in infrastructure and support systems for entrepreneurs has transformed it into a much sought-after destination for start-ups, global talent and entrepreneurs. Dubai will also continue to provide alternative growth pathways facilitated by reforms and regulatory enablers, including visa initiatives like the Golden Visa, 5-year Multi Entry Visa, Virtual Working, and Retire in the Dubai programs that have eased barriers to entry, promoted long-term affiliation with the city and further enhanced its position as a global liveability hub.

In the design of the new banknote, the CBUAE was keen to highlight the success story of the UAE, using images along with cultural and development symbols that reflect the pioneering global achievements of the UAE, which boosted its position amongst developed countries in a record time. The design of the new banknote embodies the forward-looking vision and ambitions that has become a reality for the UAE as a leader in space exploration.

The distinctive aesthetic characteristic of this banknote lies in the different shades of brown used which preserves the colour characteristics of the same denomination banknote currently in circulation to make it easy for the public to identify, in addition to the fluorescent blue marks of the UAE nation brand in the centre, and drawings and inscriptions created using advanced intaglio printing techniques.

Security and Design Features

The front side of the new banknote depicts the image of the late Sheikh Zayed bin Sultan Al Nahyan, next to a model of a space shuttle, inspired by his meeting with the pioneers of the American space agency NASA in 1974.

This ambition was achieved in the Emirates Mars Mission “Hope Probe” journey in 2021, and it was embodied in the new banknote by placing an image of the “Emirates Mission to Explore Mars – the Hope Probe” at the top of the space shuttle, and the image of an astronaut added as a security mark that appears on the front side of the banknote, to express the arrival of the first Emirati astronaut to the space.

The back of the new banknote features an image of the Barakah Nuclear Energy Plant in Abu Dhabi, which will play a key role in diversifying energy sources in the country and reduce carbon emissions.

To enhance consumers’ confidence and to combat counterfeiting of the national currency, the new banknote features advanced security features that include modern technologies such as SPARK Flow® DIMENSIONS, which is used for the first time in banknotes circulated in Europe, the Middle East, and Africa. Furthermore, the UAE is the first in the MENA region to issue the largest multi-coloured KINEGRAM® surface applied foil stripe in the new banknote issue.

In addition to the distinct visual effects in terms of security and design, the CBUAE added prominent symbols in Braille to help blind and visually impaired consumers to identify the banknote’s value. The new banknote will be in circulation alongside the current AED1000 note whose value is guaranteed by the UAE law.

The CBUAE coordinated directly with ATM operating companies in the UAE to reprogram the dedicated ATM machines to accept the new banknote.

Recently, the CBUAE won the ‘Best New Banknote’ award for its new AED1000 banknote characterised by unique designs, technical characteristics, and innovative security features at the regional level for the year 2023. This was announced during the annual awards ceremony for Banknote and ID Document of the Year Awards, which was held on the sideline of the High Security Printing EMEA conference in Abu Dhabi.

On this occasion, H.E. Khaled Mohamed Balama, Governor of the CBUAE, said: “The issuance of this new banknote, which is printed using eco-friendly polymer material, is aligned with the leadership’s declaration of 2023 as the Year of Sustainability, and embodies the features of the new phase that the UAE has begun in its developmental journey and ambitious future. The new banknote features unique technical characteristics to keep pace with global standards and technologies with the aim of making the dirham an international currency used worldwide.”