UAE Rules Out Income Tax, Challenges EU Blacklist and Trade Policies

UAE, 22 January, 2025 :  The UAE has no plans to introduce income taxes, confirmed Economy Minister Abdulla bin Touq Al Marri during an interview with Bloomberg News at the World Economic Forum in Davos. “It’s not on the table or being discussed in any meetings,” Al Marri stated, dismissing ongoing speculation.

Al Marri also criticized the European Union for keeping the UAE on its blacklist for combating illicit money flows, despite the country’s removal from the Financial Action Task Force’s (FATF) gray list last year. “The UAE exited the gray list in record time through rigorous scrutiny of its systems,” he noted, questioning the EU’s continued stance.

The minister highlighted the UAE’s diplomatic efforts to address the issue but did not indicate a shift in the EU’s position.

Additionally, Al Marri raised concerns about an EU directive that could penalize imports from nations without trade unions. “You can’t dictate how countries manage their labor systems. What works in the UAE works,” he said, warning the directive could impact oil and gas industries, including LNG exports to Europe.

The UAE, a key OPEC member, plans to expand its liquefied natural gas exports to Europe despite such challenges. Qatar, a major LNG producer, has similarly criticized the EU’s climate policies. The EU has not yet commented on these issues.