Weekly Spotlight: Real Estate and Housing Facilities Announced in Abu Dhabi and Oman

This week the spotlight is on real estate developments in the GCC, where Abu Dhabi’s Urban Planning and Municipality Department has announced a number of facilities including real estate developers will be exempt from fines imposed on delays in registering their real estate transactions for the first time. Developers are now exempt from 10,000 AED fines if they are late in registering their businesses. The exemption is valid for all transactions made on properties but which have not been registered.

Elsewhere, Oman’s Housing Ministry has announced it has set up a centre to help developers clear all project approvals in 27 days. The aim is to boost the sector in the Sultanate and reduce paperwork levels. Previously developers had to approach different Government agencies to get approvals which could take upto two years.

Weekly Spotlight: Latest VAT developments in the GCC

This week the spotlight is on VAT developments in the GCC. Whilst Saudi Arabia and the UAE’s VAT regimes have come into force and the first knock-on effects have been felt and additional clarifications and exemptions have been issued in both jurisdictions there have been interesting developments elsewhere in the GCC region.

In Bahrain, the First Deputy Chairman of the Kingdom’s Parliament, Ali Alarady has said VAT will be introduced at 5%. However it will not be introduced before June 2018. The draft VAT law will be considered by Parliament once it is referred by the Finance Ministry to discuss the amount, the way to impose it and exempted services and goods. It comes as the Kingdom has started implementing the selective tax on a number of products including fizzy drinks, energy drinks and tobacco.

Meanwhile in Oman, according to local newspaper reports, the authorities have announced VAT will not be introduced in the Sultanate until 2019. It is understood they want to give businesses in the country more time to prepare. However the authorities added selective tax on some goods will be introduced later in the year. The affected goods are fizzy drinks, cigarettes and energy drinks.