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MS expands executive search services to meet the Gulf’s growing leadership demand 

Executive Search Launch

The leading CSP in the region can now provide services to private clients, corporates and institutions to foster growth and innovation in the Gulf region 

Dubai, 11 October 2024: UAE’s Premier Corporate and professional services provider MS has recently expanded its Executive Search portfolio to the wider Gulf region. This announcement stemmed from their extensive search expertise across the premier jurisdictions in the UAE – DIFC, ADGM & DMCC – in domains including Compliance, Finance, and Tax. 

With over 7 years of expertise in the region, MS has been assisting their clients and partners in finding leaders who not only meet their needs but genuinely connect with their vision. This expansion empowers MS to deliver executive search services for C-suite and senior-level roles, supporting private clients, corporates, and institutions looking to build a robust presence in the Gulf region. 

Mohammed Shafeek, Founder and Group CEO of MS, said,

“As a homegrown solutions provider in the UAE, we’ve always maintained a client-first, value-driven approach. Drawing from our strong legacy of operational excellence across the region, our search solutions enable clients to navigate the talent market strategically ensuring every hire is an informed, precise decision that aligns with their business objectives. This expansion reflects our proactive commitment to meeting the evolving needs of our clients and the shifting dynamics of the market. With Mr. Akhil and his team, we’re enhancing MS’s results-driven approach by seamlessly integrating search capabilities to deliver even greater value for our clients.”.  

The region has an active, accessible, leadership talent pool of professionals holding C-suite positions. The leadership team at MS leverages extensive experience and operational excellence to deliver effective executive search solutions. Their deep market understanding enables them to identify and connect clients with top-tier leaders who inspire and drive organizational success. 

Akhil Vijayan, Lead- Executive search at MS, stated that

“As the market is ever growing in recent times, talents are flowing in from all over the world, we would want to groom the talents and match with the client’s requirements. With a human-centric approach to headhunting, our team at MS will guide you through the evolving regulatory landscape in the region”.  

About MS 

MS is a corporate and professional service provider that brings together a team of multidisciplinary professionals to offer expertise in corporate, compliance, advisory, tax accounting services and executive search services to the private and international clients. With over 50+ experts and professionals serving across 4 offices which includes the significant presence at the prominent jurisdictions of the UAE, MS drives private clients, corporates, and institutions to take bold actions that stimulate growth and expedite results in the Gulf. 

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UAE FTA Deadline Extension 2024: Corporate Tax Filing and Payment Timeline Explained with Examples

Corporate Tax Filing and Payment Timeline

The Federal Tax Authority (FTA) continues to provide flexibility for businesses adapting to new tax regulations in the UAE. FTA Decision No. 7 of 2024 introduces extended deadlines for corporate tax filing and payment, offering relief to businesses incorporated after 1 June 2023. This decision is particularly relevant for companies with shorter tax periods, ensuring they have additional time to meet their tax obligations. However, for businesses with tax periods ending after 29 February 2024, the standard nine-month rule remains unchanged.

What is FTA Decision No. 7 of 2024 of Corporate Tax Filing and Payment?

FTA Decision No. 7 of 2024 applies to taxable persons incorporated, established, or recognized in the UAE on or after 1 June 2023. These businesses have been granted an extension if their tax period ends on or before 29 February 2024. They are now required to file their tax return and settle corporate tax payable by 31 December 2024. Prior to the entry into effect of FTA Decision No. 7 of 2024, entities would have had to file its Tax Return and settle the Corporate Tax Payable by 30 September 2024.

Here is an example:

Company A, incorporated in Dubai on 12 June 2023, has chosen its financial year to run from January to December. Consequently, its first tax period spans from 12 June 2023 to 31 December 2023. However, in light of FTA Decision No. 7 of 2024, Company A’s deadline to file its corporate tax return and settle any payable tax has been extended. The new deadline for these actions is now 31 December 2024, providing the company additional time to fulfil its tax obligations.

Corporate Tax Filing and Payment: Who Does the Extension Apply To?

The decision mainly affects businesses with short tax periods, particularly those incorporated mid-year. Below is a breakdown of how the extended deadlines of corporate tax filing and payment apply to different businesses:

  1. Tax Period Ending 31 December 2023
    For businesses incorporated in June or 1st July 2023, and those operating on a January to December financial year, the original deadline for filing tax returns and settling tax liabilities was 30 September 2024. However, this has now been extended to 31 December 2024, providing an additional three months to meet their obligations.
  • Tax Period Ending 31 January 2024
    Businesses incorporated in June, July, or 1st August 2023, operating on a February to January financial year, had an initial deadline of 31 October 2024. This has also been extended to 31 December 2024, giving them extra time to complete their tax filings and settle any payable taxes.
  • Tax Period Ending 29 February 2024
    For companies incorporated in June, July, August, or 1st September 2023 with a March to February financial year, the previous deadline of 30 November 2024 has now been pushed to 31 December 2024, allowing additional time to fulfill their corporate tax responsibilities.
  • Short Tax Period due to Cessation of Business
    Businesses that ceased operations, dissolved, or liquidated by 29 February 2024, were initially required to settle their tax filings by the earlier deadlines based on their tax periods. With the new extension, all applicable businesses now have until 31 December 2024 to file their returns and settle their tax liabilities.

Corporate Tax Filing and Payment: Key Takeaways for Businesses

  • New Deadline for Certain Entities: If your business was incorporated or recognized on or after 1 June 2023, and your tax period ends on or before 29 February 2024, you have until 31 December 2024 to file your tax return and settle your corporate tax payable.
  • Penalties from 1 January 2025: Administrative penalties will apply from 1 January 2025 for businesses that miss the new deadlines set by the FTA.

Corporate Tax Filing and Payment: Penalties for Non-Compliance

Failing to meet the filing deadline can lead to severe financial consequences for your business. Understanding the penalties associated with non-compliance is essential:

  • Non-filing Penalty: Businesses that fail to submit their tax returns on time will incur a penalty of AED 500 per month for the first 12 months. After this period, the penalty increases to AED 1,000 per month. This cumulative effect can lead to significant financial burdens over time.
  • Failure to Settle Payable Tax: In addition to filing penalties, any outstanding tax amounts will attract a 14% annual penalty, which is calculated monthly. This penalty applies to the total payable tax that remains unsettled after the deadline, further compounding the financial implications for non-compliant businesses.

How MS Can Assist in Corporate Tax Filing and Payment

At MS, we provide comprehensive support for corporate tax filing, ensuring that businesses fulfil their tax obligations efficiently and accurately. Our process begins with a thorough assessment of each client’s tax requirements, followed by organizing financial records and identifying the correct tax period. Our team of experts calculates tax liabilities with precision and manages the entire filing process to ensure compliance with UAE regulations. We stay informed on the latest tax law updates and offer strategic tax planning to help minimize liabilities. Additionally, we handle filing deadlines by sending timely reminders and offer post-filing support to address any penalties or disputes.

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Strengthening Financial Resilience: Key Responsibilities of a Finance Officer in the DIFC

Key Responsibilities of a Finance Officer in the DIFC

Last year, the Dubai Financial Services Authority (DFSA) imposed fines on the former CFO of a listed Real Estate Investment Trust (REIT) for being knowingly concerned in misleading statements and accounting breaches. This case serves as a stark reminder of the critical importance of financial oversight and compliance within the Dubai International Financial Centre (DIFC). It underscores the significant responsibilities of a Finance Officer in the DIFC in ensuring accurate financial reporting and adherence to regulatory standards, protecting both the firm and its stakeholders from potential repercussions.

The FO collaborates closely with senior management and other key stakeholders to oversee compliance, manage capital adequacy, and ensure timely and accurate financial reporting. In light of these events, the responsibilities of a Finance Officer in the DIFC are more critical than ever.

Before exploring the responsibilities of a Finance Officer in the DIFC, it’s essential to understand the value of having one in place.

Why a Finance Officer?

The Finance Officer serves as the regulator’s eyes and ears for the firm’s financial activities. As an Authorized Individual under DFSA regulations, the FO collaborates closely with other key authorized individuals, including the Senior Executive Officer (SEO), Compliance Officer (CO), and Money Laundering Reporting Officer (MLRO). This coordination ensures that the company meets all licensing requirements, such as capital adequacy and audit compliance, while effectively conducting its business operations.

Now, dive into the key responsibilities of a Finance Officer in the DIFC.

Key Responsibilities of a Finance Officer in the DIFC

The key responsibilities of a Finance Officer in the DIFC are comprehensive and encompass various aspects of financial oversight:

  1. Compliance Management: The FO ensures that the company adheres to the DFSA PIB module as an Authorized Individual. This includes the preparation and submission of financial reporting returns through the Electronic Prudential Reporting System (EPRS) in a timely manner.
  2. Financial Reporting: Regular reporting to the SEO and Board on critical financial matters, including capital resources, risk capital requirements, and liquid assets, is a fundamental duty of the FO.
  3. Capital Adequacy Oversight: The FO is responsible for providing timely reports on the company’s capital resources, ensuring adequate capital and liquid resources are maintained at all times to navigate potential stress events.
  4. Budgeting and Financial Projections: Preparing budgets and financial projections is essential to anticipate issues and ensure financial stability.
  5. Accounting Oversight: The FO oversees the finance and accounting functions, ensuring compliance with IFRS and applicable rules. This includes establishing and monitoring the implementation of the company’s financial policies, procedures, systems, and controls.
  6. Internal and External Liaison: The FO plays a vital role in liaising with the external auditor to obtain opinions on the financial statements and coordinate with the internal audit function concerning financial matters.
  7. Client Fund Management: Ensuring the proper reconciliation of client monies and their segregation from the company’s funds is paramount for maintaining trust and compliance.

How MS Facilitates the Key Responsibilities of a Finance Officer in the DIFC

Outsourcing finance officer services with MS plays a crucial role in DIFC bringing extensive financial expertise to ensure that your company operate in compliance with DIFC regulations and upholds ethical standards. FOs implement robust internal controls and financial processes, providing strategic advice that enhances compliance while optimizing financial performance. By fostering transparency and maintaining high financial standards, FOs help prevent fraud and build investor confidence within the DIFC framework. MS enables firms to delegate the key responsibilities of a finance officer in the DIFC, allowing the entities to concentrate on core operations and strategic growth. This partnership not only mitigates regulatory risks but also protects reputations and strengthens positions in the competitive DIFC landscape, ensuring businesses meet and exceed the stringent standards required for success.

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Dubai bets big on hedge funds: New DIFC funds centre poised to redefine global wealth management by 2025

DIFC Funds Centre by 2025

“The first-of-its-kind “DIFC Funds Centre” to support hedge fund spinouts, fund platforms and boutique wealth and asset management firms”

Can the UAE really climb to the top of the global economy by narrowing its reliance on oil? Dubai certainly thinks so. Known for its long-term vision, this ambitious country and the city of Dubai are rapidly transforming its economy, with a particular focus on finance. A big part of this story is the Dubai International Financial Centre (DIFC), which recently gained attention by creating headlines regarding the launch of a first-of-its-kind funds centre in 2025. The DIFC funds centre aims to provide an ecosystem for hedge fund spinouts, fund platforms, and boutique wealth management firms, putting Dubai on track to become a major global leader in international finance.  

How DIFC funds centre act as a magnet for global investors 

Dubai’s attractiveness as a financial hub is not limited to local players; it is drawing global interest. The establishment of the DIFC Funds Centre aligns with Dubai’s broader economic ambitions, such as the Dubai Economic Agenda (D33), which aims to position the city as a leading global business and innovation centre. The influx of international capital not only benefits hedge funds but also strengthens key sectors like real estate, technology, and infrastructure. 

The DIFC Funds Centre is perfect for companies and talent looking to scale up, offering flexible working solutions and great opportunities for individual networking.  

Enhancing Economic Diversification: The key role of DIFC funds centre 

The hedge fund boom has been a vital player in diversifying the UAE’s economy. DIFC serves as the base for 13 of the world’s top 100 hedge funds, demonstrating the sector’s rising profile. The region is witnessing a remarkable trend, with around 40 hedge funds managing at least $1 billion in assets. This indicates not only the financial scale of operations but also the sophistication and attractiveness of the investment environment in Dubai.  

With the upcoming DIFC funds centre, the region is set to further enhance this ecosystem. With the city already home to over 72,000 millionaires, the potential for investment activity is massive, as the population of high-net-worth individuals (HNWIs) in the UAE is projected to increase by 40% between 2021 and 2031. 

The contribution of regional financial powerhouse to the UAE’s economy 

In just over a decade, Dubai and DIFC have emerged as the premier investment hub for the Middle East, Africa, and South Asia (MEASA). The concentration of hedge fund activities in DIFC enhances the UAE’s stature as a global financial powerhouse. With 300 wealth and asset management firms currently registered, and 50 additional companies involved in hedge fund activities, the region is positioned for sustained growth. Dubai’s solid regulatory framework and welcoming business environment are major reasons why financial services are booming there. With more hedge funds making their home in the city, they’re set to be key players in attracting wealth, talent, and fresh ideas. 

The DIFC Funds Centre: A Catalyst for Global Wealth Management 

The DIFC funds centre is not just reshaping the UAE’s hedge fund landscape; it’s positioning Dubai as a serious contender on the global financial stage.  

By integrating hedge funds into its expanding financial ecosystem, Dubai is advancing its long-term goal of economic diversification and innovation, a critical part of the UAE’s broader economic strategy. 

With its strategic vision, robust infrastructure, and a growing pool of talent, the DIFC funds centre is set to redefine global wealth management and solidify Dubai’s place as a leading financial hub. This bold initiative marks a pivotal moment in the UAE’s journey towards becoming a top player in the world of finance and investment. 

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Startups Risk Profile and Dynamic Valuation Techniques: Why Do Valuation of Startups Need Unique Approaches? 

Why Do Valuation of Startups Need Unique Approaches

In a world buzzing with possibilities, start-up founders, entrepreneurs, and venture capitalists are leading a wave of innovation, crafting products and services that promise a brighter future. With investments in these young ventures gaining momentum, we’re witnessing an explosion of successful start-ups and an unprecedented rise in unicorns.

Yet, amidst this excitement, challenges loom. Volatile capital markets, shaken by recent crises, add complexity to transactions involving these emerging businesses. One critical aspect of the valuation of startups is the heavy reliance on intangible assets, such as intellectual property, brand strength, and proprietary technologies, which play a significant role in driving a startup’s valuation. Understanding the unique risks that early-stage companies face is crucial; overlooking these can lead to miscalculating their true worth. 

 So, how do we approach their valuation? Do start-ups need their own special methods? 

Join us as we explore these questions in the valuation of startups, trace the journey of a start-up’s risk profile, and uncover how dynamic valuation techniques can reveal their hidden potential. 

Valuation of Startups: Understanding the Weight of the Methods 

The valuation of startups isn’t just a straightforward calculation; it’s a nuanced process where the weight assigned to each method varies significantly depending on the company’s development stage. Here’s a breakdown of how we approach this: 

  • Qualitative Methods: Higher Weight for Early-Stage Companies 

For the valuation of startups that lack a financial track record, qualitative methods take the lead. Approaches like the Scorecard Method and Checklist Method come into play, prioritizing assessments that don’t heavily rely on financial projections—often fraught with uncertainty. 

  • Quantitative Methods: Higher Weight for Mature Companies 

On the flip side, for companies with established financial histories, quantitative methods—such as DCF (Discounted Cash Flow) and Earning Multiple methods—become more prominent. These methods leverage historical data and reliable forecasts, providing a clearer picture of a company’s worth. 

Final Valuation Calculation 

Ultimately, the final valuation of startups is computed as a weighted average of the selected methodologies. The default weights applied reflect the significance of each method based on the company’s maturity and financial track record. 

Valuation of Startups: Methods Explored 

1. Scorecard Method: Evaluating Potential 

Originally developed by American business angels in 2001 and popularized by the Kauffman Foundation in 2007, the Scorecard Method evaluates potential based on key factors. Here’s how it works: 

  • Establishing a Baseline: Begin with the average pre-money valuation of similar companies within the same industry and stage. 
  • Evaluative Factors: Score the startup against criteria such as: 
  • Team Strength: Experience and track record of the founding team. 
  • Market Opportunity: Size and growth potential of the target market. 
  • Product/Technology: Uniqueness and competitive advantage. 
  • Sales and Traction: Current revenue and customer acquisition metrics. 
  • Business Model: Sustainability and scalability. 
  • Adjusting the Baseline: Based on the scores, adjust the baseline valuation to arrive at a range of potential valuations. 

2. Checklist Method: A Structured Approach 

Proposed by venture capitalist Dave Berkus in 1996 and refined in 2016, the Checklist Method uses a systematic approach to evaluate startups. 

  • Creating a Checklist: Develop a comprehensive checklist covering factors like market conditions, competitive landscape, and financial health. 
  • Scoring System: Assign points to each criterion, establishing thresholds that impact the overall valuation. 
  • Assessment: Evaluate the startup against the checklist to identify strengths and weaknesses, leading to a more structured and objective valuation. 
  • Evaluating Strength of IP: Assess the quality and robustness of the startup’s IP portfolio, including patents, trademarks, and proprietary technologies. Strong IP not only serves as a cornerstone of competitive advantage but also creates significant barriers to entry for competitors, contributing to a startup’s economic moat. 
  • Final Adjustment: Adjust the valuation based on the overall score from the checklist. 

3. DCF with Long-Term Growth: Forecasting Success 

The DCF with Long-Term Growth method estimates future cash flows and discounts them back to present value, assuming a constant growth rate. This method is vital for companies with a proven track record. 

  • Cash Flow Projections: Forecast cash flows for 5-10 years based on expected revenue growth. 
  • Terminal Value Calculation: Estimate the terminal value reflecting the business’s worth beyond the forecast period. 
  • Discount Rate: Select an appropriate discount rate, often using the weighted average cost of capital (WACC). 
  • Present Value Calculation: Discount projected cash flows and terminal value to arrive at the total valuation. 

4. DCF with Multiple: Leveraging Comparables 

This method is similar to the Long-Term Growth DCF in valuation of startups but utilizes industry multiples to estimate terminal value. 

  • Cash Flow Projections: Start with projected future cash flows. 
  • Exit Multiple: Apply an industry-specific exit multiple to the projected cash flows in the terminal year. 
  • Discounting Back: Discount the cash flows and terminal value back to present value using the same discount rate as the traditional DCF method. 

5. Venture Capital Method: Aiming for Returns 

In valuation of startups, this method estimates the expected return on investment for venture capitalists, focusing on exit valuations. 

  • Target Return Calculation: Determine the desired return (e.g., 3x or 5x) over a specific horizon (usually 5-10 years). 
  • Exit Valuation: Estimate the expected exit value based on revenue and industry multiples. 
  • Post-Money Valuation: Calculate the post-money valuation by dividing the expected exit value by the target return multiple. 
  • Pre-Money Valuation: Subtract the investment amount from the post-money valuation to determine the pre-money valuation. 

Diving into the world of early-stage companies reveals a mix of exciting opportunities and challenges. To truly understand their value, we need to use different valuation methods that fit their unique situations. By looking closely at their changing risk profiles and using both qualitative and quantitative approaches in the valuation of startups, we can uncover the hidden potential in these startups. As these companies continue to shape our economy and culture, it’s crucial for investors and stakeholders to appreciate their real worth. With the right valuation of startups, we can support innovation and help the next wave of creators thrive. 

How MS can aid in Valuation of Startups 

At MS, we understand that the journey of early-stage companies is filled with both challenges and immense potential. Our expertise in valuation of startups methodologies equips them with the insights needed to tackle the complexities of their unique risk profiles. By employing dynamic valuation approaches tailored to the specific circumstances of each venture, we help founders, entrepreneurs, and investors uncover the true value of their innovations. From leveraging qualitative methods like the Scorecard and Checklist Methods to employing robust quantitative techniques such as DCF analysis, we offer a comprehensive suite of services designed to enhance your strategic decision-making. Let’s embark on this journey together and shape the future one start-up at a time. 

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What’s New in the UAE VAT Update: Implications for Digital Assets, Tax invoices and More!

This new UAE VAT update is under Cabinet Decision No. 52 of 2017

For the first time since the introduction of VAT in 2018, the Federal Tax Authority (FTA) of the UAE has made extensive revisions to Executive Regulations of the Law through Cabinet Decision 100 of 2024. This new UAE VAT update is under Cabinet Decision No. 52 of 2017 and introduces important changes that will take effect on November 15, 2024. These amendments reflect the FTA’s commitment to adapt to the evolving business landscape in the UAE.

UAE VAT Update:  Key Amendments and Their Implications

Financial Services

One of the most notable revisions to the UAE VAT update is the introduction of a Digital Asset definition under Article 1. Digital assets are now recognized as “digital representations of value that can be traded or transferred digitally and used for investment purposes, excluding fiat currencies or securities.”

Additionally, Article 42 (2) has been amended to include several services under the definition of financial services:

  • Providing investment fund management services independently for a fee for funds licensed by a competent authority in the state.
  • Transferring ownership of digital assets, including cryptocurrencies.
  • Converting digital assets.
  • Safeguarding and managing digital assets.

Furthermore, Article 42 (3) now specifies that the following services are exempt from VAT:

  • Investment fund management services.
  • Transferring ownership of digital assets.
  • Converting digital assets.

Notably, the last two exemptions will be applicable retrospectively from January 1, 2018. This is a significant development that clarifies the taxation of digital assets, an area of growing interest and investment in the UAE according to the new UAE VAT update.

Exception to Supply and Deemed Supply

The Exception to Supply definition in the UAE VAT update now includes the transfer of ownership or disposal rights of government buildings and real estate assets between government entities. This amendment simplifies the asset transfer process for government entities, ensuring that such transactions are not subject to VAT, effective from January 1, 2023.

Moreover, the Deemed Supply Exception provision has been extended in the UAE VAT update, allowing up to AED 250,000 for suppliers who are government entities or charitable organizations, provided the recipient is also a government entity or charitable organization within a twelve-month period. This extension offers relief to charitable organizations and government entities, enabling them to operate without the additional burden of VAT.

Profit Margin Scheme

According to the new UAE VAT update, Article 29 has clarified that the purchase price under the Profit Margin Scheme includes all costs and fees incurred to purchase the goods. This removes ambiguity and provides businesses with clear guidance on calculating the purchase price under this scheme.

Proof for Export of Goods

In the current UAE VAT update, for the Export of Goods, Article 30 now specifies the necessary documents to prove that an export has occurred, thus making it eligible for treatment as a zero-rated supply. Acceptable documents include:

  • Customs declaration and commercial evidence proving the export.
  • Shipping certificate and official evidence proving the export.
  • Customs declaration proving customs suspension if the goods are under customs suspension.

The clarifications surrounding “official evidence” and “commercial evidence” will facilitate smoother export processes for UAE exporters who have faced challenges in obtaining Exit Certificates.

Zero-rated Services

Article 31 for the Export of Services according to the new UAE VAT update specifies that services will not be zero-rated if their place of supply is within the UAE, according to certain scenarios outlined in Articles 30 and 31 of the UAE VAT Law. This change requires businesses to conduct detailed analyses to understand the implications on their operations and ensure compliance with the new regulations.

Composite Supply

The amendment to Article 46 (1) now states that tax treatment should be based on the overall nature of the supply if no main component is included in a composite supply. This change provides clarity on treating composite supplies for VAT purposes.

Input VAT

Article 53 in the current UAE VAT update now allows for the recovery of input VAT for health insurance, including enhanced health insurance for employees and their dependents within the limits of one spouse and three children under the age of eighteen. This amendment is a significant relief for businesses, enabling them to recover VAT on essential employee benefits.

Additionally, Article 55 in the UAE VAT update clarifies the end of the tax year in various scenarios, including tax registration cancellation and changes in tax group membership. For input VAT apportionment calculations, if the tax year is less than twelve months, the AED 250,000 limit for actual use should be proportionately adjusted. Taxable persons can request FTA approval to use a fixed apportionment percentage based on the previous tax year, benefiting businesses with consistent annual profiles.

Tax Invoices

The timeline for issuing Tax Invoices has been adjusted in the UAE VAT update, particularly for simplified and summary tax invoices. A simplified tax invoice must be issued on the date of supply, while a summary tax invoice must be issued within 14 days from the end of the calendar month that includes the date of supply. These changes require businesses to comply with invoicing requirements promptly, thereby reducing the risk of non-compliance.

The amendments to the UAE VAT framework represent a significant evolution in the taxation landscape. Taxpayers must carefully review these changes and assess their impact on their operations and compliance obligations. Navigating these amendments will require thorough analysis and informed decision-making to ensure adherence to the new regulations. Understanding these updates is crucial for businesses operating in the UAE as they adapt to the evolving VAT landscape.

How MS Can Assist You with the Latest UAE VAT Update

At MS, we help businesses stay compliant with the latest UAE VAT updates. Our team provides expert guidance on the new regulations, ensuring you understand how they affect your operations. We offer support in key areas like VAT exemptions, input VAT recovery, and tax invoicing. With our ongoing compliance services, we make sure your business remains up to date with the evolving VAT framework.

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New UAE Employment Visa Rules: What Businesses and Talents Need to Know!

UAE Employment Visa Rules

Planning to take your venture into the UAE? Then knowing the visa and permit requirements is essential. The new UAE employment visa rules will make it easier for the people to visit, work and invest in the country. As of 2024, the UAE has introduced significant updates to its employment visa regulations, underscoring the country’s commitment to adapting to global trends and enhancing workforce management. For businesses looking to hire and manage talent effectively, understanding the new UAE employment visa rules is essential.

Key Updates to the UAE Employment Visa Rules

If you’re looking to get a UAE employment visa, there are a few things you need to keep in mind. First, you must be at least 18 years old. Your employer also needs to have a valid license and should be in good standing with no labor law violations. Plus, the job you’re applying for has to be relevant to what the employer does. It’s pretty straightforward!

The recent changes to the UAE employment visa rules aim to improve flexibility and efficiency for both employers and employees. Staying informed on the recent regulations can help you avoid potential legal issues.

  • The new rules offer extended visa validity periods, providing foreign workers with increased stability and reducing the frequency of renewals.
  • The application process has also been streamlined, with fewer documentation requirements and faster processing times to facilitate quicker onboarding of new employees.
  • Additionally, the UAE now offers a range of flexible employment visa options, including provisions for part-time and freelance work, catering to both businesses and individuals seeking non-traditional roles.
  • Renewed emphasis on attracting skilled professionals, ensuring that visa issuance aligns with qualifications and expertise to support the country’s economic diversification goals.
  • The new initiatives have been implemented to assist startups and small businesses, including expedited visa processing and targeted programs designed to nurture entrepreneurship.

UAE Employment Visa Rules Explained: Types and Benefits

The UAE offers various visa options to cater to different needs and circumstances, making it an attractive destination for many. Among these, the UAE employment visa stands out as a key option for skilled workers, providing them with the opportunity to live and work in the region.

1. Green Residence Visa

The Green Residence Visa is an excellent option for skilled workers, investors, freelancers, and entrepreneurs, offering 5 years of residency without a sponsor. Here are the key benefits:

  • Extended Grace Period: Enjoy up to 6 months after your permit expires or is canceled for a smooth transition.
  • Family Sponsorship: Sponsor first-degree relatives for the same duration as your visa.

For Skilled Employees: The visa lasts 5 years without needing an employer.

For Freelancers and Self-Employed: Supports long-term residency.

For Investors and Business Partners: Available for those seeking a 5-year residency.

2. Golden Visa

The Golden Visa offers long-term residency for foreign nationals wishing to live, work, or study in the UAE, with a range of privileges, including:

  • An entry permit lasting 6 months with multiple entries to obtain residency.
  • A renewable residence permit valid for either 5 or 10 years without needing a sponsor.
  • The ability to reside outside the UAE for over 6 months while retaining residency.
  • Visa sponsorship for family members, including spouses and children of any age, and unlimited domestic helpers.
  • Dependents can remain in the UAE even if the primary visa holder passes away, until the end of their permit duration.

The Application Process of the UAE employment visa

The process for obtaining a UAE employment visa involves several steps:

  1. Employer Application: The employer applies for the employment visa online via the MOHRE portal. Keep a regular check on the site and relevant authorities to stay informed. If the visa is for any of the free zones in the UAE, it is mandatory for the employer to secure it before the employee arrives for work.
  2. Entry Approval: Upon approval, the employee must enter the UAE within a specified time frame. It takes anything between three and five days to secure a work permit approval.
  3. Medical Check: A medical examination is conducted upon arrival. Additional tests may be needed based on the job role.
  4. Residence Visa and Emirates ID: Once the medical test is cleared, the employer must initiate the residence visa application within the 60-day validity of the entry permit. The application for the residence visa and Emirates ID should be submitted within 15 days of the employee’s arrival in the UAE. The Emirates ID serves as a national ID card that contains visa and residency details, and it is essential for most transactions.
  5. Health Insurance: Employers are required by UAE labor law to provide health insurance coverage for employees, ensuring that it includes essential benefits such as hospitalization, surgeries, and doctor visits.
  6. Labor Card Issuance: Finally, a labor card is issued.  

Challenges in Adapting to the New UAE Employment Visa Rules

While the new UAE employment visa rules offer many advantages, several challenges must be addressed. Employers must ensure strict compliance with updated regulations to avoid legal issues, while understanding the visa renewal process is essential for maintaining legal status. Additionally, cultural adaptation is key to successful integration into the workplace. By proactively tackling these challenges, both employers and employees can ensure a smoother experience in the UAE.

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Are UAE Executive Search Firms Prioritizing Culture Add Over Fit in the Corporate Culture? Find the 2024 trend here!

UAE Executive Search Firms Prioritizing Culture Add Over Fit in the Corporate Culture

As Satya Nadella, CEO of Microsoft, aptly put it, “Anything is possible for a company when its culture is about listening, learning, and harnessing individual passions and talents to the company’s mission. Creating that kind of culture is my chief job as CEO.”

In 2014, when Satya Nadella took the helm at Microsoft, the company was at a crossroads. Known for its competitive, hierarchical culture that stifled innovation, Microsoft faced intense challenges from rivals like Apple, Google, and Amazon due to its existing corporate culture. Nadella recognized that transforming the company’s culture was essential for overcoming these challenges and fostering an environment conducive to growth and collaboration. His leadership introduced a new cultural paradigm, emphasizing a growth mindset, psychological safety, and open collaboration.

Corporate culture is crucial not only for the success of individual executives but also for the overall vitality and direction of an organization. The interplay between corporate culture and executive search profoundly impacts both the effectiveness of leadership and the long-term trajectory of the company. Ensuring that new leaders align with or enhance the company’s cultural values is essential for fostering sustainable growth and organizational health.

Corporate Culture: Strategic Considerations in Executive Leadership in the UAE Executive Search Firms

The interplay between corporate culture and executive leadership is not just about ensuring alignment at the team level for UAE Executive Search Firms; it’s about embedding cultural values into the strategic decision-making process. Leaders set the tone from the top, and their ability to either perpetuate or transform the organizational culture has far-reaching implications. When selecting top-tier executives, the focus should not only be on operational competence but also on their ability to embody and promote the desired culture, aligning with the company’s strategic goals.

Corporate Culture & UAE Executive Search Firms: Assessing Cultural Fit vs. Cultural Add-in Executive Candidates

In the context of UAE executive search firms, “cultural fit” and “cultural add” are more than HR terms; they are strategic considerations that can shape the company’s trajectory:

Cultural Fit: It refers to the alignment between a candidate’s values, behaviors, and leadership style with the existing corporate culture. This approach is beneficial when the goal is to maintain stability and coherence, especially in times of steady growth. However, an overemphasis on cultural fit can lead to homogeneity, potentially stifling innovation and adaptability—qualities essential for navigating complex, dynamic markets.

Cultural Add: It involves identifying leaders who bring new perspectives, challenge the status quo, and drive cultural evolution. This approach is particularly valuable during periods of transformation or disruption, as it promotes diversity of thought and strategic agility. Leaders who represent a cultural add can help organizations pivot, explore new opportunities, and rejuvenate stagnant practices.

Deciding between fit and add requires a nuanced understanding of the company’s objectives and cultural aspirations in terms of UAE Executive Search Firms. It’s about finding leaders who can not only perform but also transform, aligning with where the organization wants to go, not just where it currently is.

Corporate Culture: Methods for Evaluating Cultural Alignment in the UAE Executive Search Firms

To ensure that executive candidates align with or can strategically enhance corporate culture, a more sophisticated approach is required in the UAE Executive Search Firms:

Leadership Simulation Exercises: Instead of traditional interviews, use simulation exercises that mimic real-world strategic challenges your organization faces. This method allows you to observe how candidates approach complex issues, make decisions, and influence team dynamics—providing deeper insights into their cultural alignment and leadership style.

Strategic Vision Alignment: Assess candidates’ understanding of the company’s vision and how they would contribute to achieving it. This involves evaluating their past experiences with pivots and their ability to lead cultural transformations that support business goals.

Cultural Integration Plan: Ask candidates to present a cultural integration plan, outlining how they would align themselves with or evolve the current culture to meet objectives. This can reveal their proactive approach to culture and leadership at the executive level.

Peer Review Panels: Include peers from other C-suite functions in the evaluation process. This can provide a multi-dimensional perspective on how well a candidate’s leadership style and strategic mindset align with the broader executive team and organizational ethos.

The Role of the UAE Executive Search Firms in Shaping Corporate Culture

UAE Executive search firms play a pivotal role in shaping not just leadership teams but the strategic culture of organizations. By identifying leaders who either resonate with or can redefine the existing culture, executive search firms enable companies to build a leadership team that is strategically aligned and culturally coherent.

A targeted executive search process ensures that leaders are not only equipped with the technical skills but also possess the cultural empathy necessary to drive the organization forward. Whether the goal is to reinforce the existing cultural fabric or to infuse new thinking and innovation, the right leaders can be transformative.

Building Corporate Culture with the UAE Executive Search Firms: Finding Leaders Who Align, Innovate, and Drive Success

MS is one of the leading UAE Executive Search Firms. Here, we specialize in identifying leaders who not only fit but also elevate your corporate culture. We strike a balance between cultural fit and cultural add, ensuring that our executive placements are aligned with your organization’s vision and cultural values. Our comprehensive onboarding support helps new leaders integrate smoothly and effectively, fostering an environment of innovation and growth. As your partner, we are committed to delivering leaders who drive cultural alignment and business success, positioning your organization for sustained competitive advantage.

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7 Critical Steps to Set Up a DIFC Foundation for Secure Wealth Planning

7 Critical Steps to Set Up a DIFC Foundation for Secure Wealth Planning

“Here’ re the 7 key steps to set up a DIFC Foundation, emphasizing the importance of tailored documentation and regulatory compliance for effective wealth management. It highlights how this secure and flexible framework can help individuals and families in protecting and managing their assets for future generations.”

When it comes to wealth management, the right strategies and tools can be transformative. It’s not solely about increasing your assets; it’s also about protecting them for future generations and ensuring a seamless transition of wealth. In a world where personal and business interests often stretch across various jurisdictions, finding a robust and adaptable solution is essential. This is where the Dubai International Financial Centre (DIFC) foundations emerge as the premier structuring option that the MEASA region has to offer.

Established under the exclusive governance of DIFC laws, DIFC foundations offer a secure and flexible framework recognized globally, making them an ideal choice for individuals and families committed to preserving and managing their wealth across borders.

Now that you understand the importance and benefits of a DIFC foundation, Let’s explore the steps to set up a DIFC Foundation.

Key Steps to Set up a DIFC Foundation

Step 1: Collation of Documents

The first step in setting up a foundation involves gathering the necessary documentation. This includes detailed Know Your Customer (KYC) information on the following individuals:

  • Founder: The person or entity establishing the foundation.
  • Council Members: Individuals appointed to manage the foundation’s affairs.
  • Guardian: The person responsible for overseeing the foundation and ensuring compliance with its charter and by-laws.

Collecting comprehensive KYC documentation is crucial for compliance with regulatory requirements and ensures that the foundation operates within the legal framework established by the DIFC.

Step 2: Preparation of Resolutions and Legal Documents

Once the documentation is in place, the next step is to prepare the necessary resolutions and legal documents. This includes drafting the Charter and By-Laws of the foundation.

While standard templates are available, we highly recommend customizing these documents to align with the specific needs and objectives of the client. Customization ensures that the foundation’s governance structure, operational procedures, and overall mission reflect the founder’s intentions and requirements.

Step 3: Finalization of Registered Address

A foundation must have a registered address in the DIFC. This address can either be a physical location within the DIFC or provided by a registered corporate service partner. Selecting a reliable registered agent is essential, as they will assist with compliance matters and ensure that the foundation meets all legal obligations.

Step 4: Initial Submission to the DIFC Registrar of Companies

One of the key steps to set up a DIFC Foundation is submitting an application to the DIFC Registrar of Companies. It should include the Charter, By-Laws, KYC details, and proof of the registered address.

Step 5: DIFC Review/Clarifications and Responses

Upon receiving the application, the DIFC Registrar will review the submitted documents. During this stage, the Registrar may request additional clarifications or information. It is crucial to respond promptly and accurately to any inquiries to facilitate the approval process.

Step 6: Final Approvals

Once the DIFC Registrar is satisfied with the application and all required clarifications have been addressed, the foundation will receive final approvals. At this stage, the foundation is officially formed, and the founders can begin to execute its objectives.

Step 7: Bank Account Opening and Visa Applications (if applicable)

Among the key steps to set up a DIFC Foundation, the final procedure involves opening a bank account and applying for any necessary visas for council members or staff. A bank account is essential for managing the foundation’s finances and ensuring its objectives are met effectively.

Steps to Set Up a DIFC Foundation: Benefits and Challenges

Setting up a DIFC Foundation is a powerful way to safeguard and manage wealth across borders, offering unparalleled flexibility, security, and global recognition. By following these clear and structured steps to set up a DIFC Foundation, individuals and families can ensure that their foundation is established in compliance with DIFC regulations and tailored to their unique needs and objectives. Whether you’re looking to protect personal assets, streamline succession planning, or support philanthropic endeavours, a DIFC Foundation provides the ideal platform to achieve long-term wealth preservation and growth.

While the steps to set up a DIFC Foundation are structured and clear, individuals and families may encounter various challenges during the process. Common issues include difficulties in documentation preparation, compliance with regulatory requirements, and understanding the DIFC laws.

Steps to Set Up a DIFC Foundation: How MS Can Guide You Through the Process

At MS, we specialize in providing end-to-end solutions for setting up DIFC Foundations. As a registered corporate service provider in the DIFC, we guide you through steps to set up a DIFC Foundation from gathering the necessary documentation to securing final approvals. Our team ensures that your foundation is customized to meet your specific needs while complying with all regulatory requirements. MS is your trusted partner in safeguarding and managing wealth for future generations. Let us help you unlock the full potential of a DIFC Foundation.

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Is Market Entry Research and Business Feasibility Study Essential for Tapping into New Market Opportunities?

Market Entry Research and Business Feasibility Study

As the global marketplace is evolving, successful expansion hinges on understanding new territories. Market entry research and Business feasibility study serves as your compass, guiding businesses through the complexities of unfamiliar landscapes. By uncovering critical insights into market size, competitive dynamics, and consumer behaviour, this research not only highlights opportunities but also helps mitigate potential risks. As companies seek to tackle the challenges of entering new markets, comprehensive market entry research and business feasibility study becomes an essential foundation for strategic decision-making, ensuring that businesses are well-equipped to thrive in diverse environments.

What is Market Entry Research and Business feasibility study?

Market Entry Research is the process of evaluating a potential new market to help a business understand its dynamics and make informed decisions about entering it. It includes analyzing market size, growth potential, customer behavior, competitive landscape, and regulatory requirements. The goal is to identify opportunities, assess risks, and develop strategies for successfully launching products or services in the new market.

A Business Feasibility Study assesses whether a business idea or project is practical and sustainable. It examines key aspects such as market demand, operational requirements, financial viability, and legal considerations. By evaluating these factors, businesses can determine if the idea is worth pursuing, understand potential challenges, and estimate the chances of success.

Key Components of Market Entry Research and Business Feasibility Study

Here are the key components of both Market Entry Research and Business Feasibility Study:

1. Market Entry Research

  • Market Size & Growth: Analyzing the current market size, growth trends, and future potential.
  • Customer Demographics: Understanding the target audience, their behavior, preferences, and needs.
  • Competitive Landscape: Identifying key competitors, their market share, and strengths or weaknesses.
  • Market Barriers: Assessing potential challenges, such as entry barriers, trade restrictions, and distribution issues.
  • Regulatory Environment: Understanding local laws, tax policies, and compliance requirements.
  • Cultural Considerations: Evaluating cultural norms, language, and local business practices.
  • Pricing Strategy: Determining appropriate pricing by studying competitors and local market dynamics.

2. Business Feasibility Study

  • Technical Feasibility: Assessing whether the necessary technology, equipment, and processes are available and efficient.
  • Market Feasibility: Evaluating market demand, customer base, and industry trends.
  • Financial Feasibility: Estimating the initial investment, operating costs, revenue projections, and profitability.
  • Legal Feasibility: Ensuring compliance with relevant laws, regulations, and licensing requirements.
  • Operational Feasibility: Analyzing the internal capabilities of the business, including staff, resources, and logistics.
  • Economic Feasibility: Gauging the economic environment, interest rates, inflation, and other factors that may impact the business.

The Role of Market Entry Research and Business Feasibility Study in Deals

Market Entry Research and Business Feasibility Study are essential in business deals, particularly mergers, acquisitions, and market expansions. Market entry research helps businesses assess the external environment by analysing market size, competition, demand, and regulatory challenges, ensuring informed decision-making and reducing risk. It also aids in competitive positioning and strategic alignment when entering new markets. A business feasibility study, on the other hand, focuses on internal viability by evaluating the financial, technical, and operational aspects of a business or project. It determines investment potential, highlights risks, and supports accurate business valuations. Together, these tools provide a comprehensive understanding of both external market conditions and internal capabilities, ensuring that deals are based on solid insights and sound planning.

MS as your partner in Market Entry Research and Business Feasibility Study

At MS, we specialize in providing comprehensive market entry research and business feasibility study to support businesses in their expansion initiatives. Our services include in-depth analyses of market size, growth potential, competitive dynamics, and consumer behavior, enabling clients to identify promising opportunities. We also offer insights into navigating regulatory frameworks, ensuring compliance and minimizing risks associated with entering new markets. By partnering with us, companies can develop tailored strategies that optimize resource allocation and enhance their market positioning, ultimately driving sustainable growth and success in diverse territories. Our goal is to empower businesses to make informed decisions as they venture into new markets.