1.875
%
Positive
8
mm boe
72
%
The political environment is stable and the UAE maintains contract integrity. The emirates, especially Ras Al Khaimah and Sharjah, are starting to make the fiscal terms more attractive in order to effectively compete for investment globally.
January 25, 2024
Middle East
mm bbl
bcf
Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia.
Concession
Negotiations for exploration and production acreage are conducted directly with the Governments of the individual Emirates or with the Petroleum Councils where they exist. Detailed fiscal terms are negotiable on a case-by-case basis. Although rare, a direct state participation option is limited to Abu Dhabi and Sharjah where the State can exercise a participation option of up to 60%; to date, this option has only been exercised on three occasions. The concession-based fiscal regimes are usually fairly simple, with royalty and corporate income tax payable, both of which may either be fixed rates, or sliding-scale rates based on production levels.
The UAE serves as a major trade and investment hub for the Middle East and North Africa, as well as increasingly for South Asia, Central Asia, and Sub-Saharan Africa. Multinational companies cite the UAE’s political and economic stability, excellent infrastructure, developed capital markets, and a perceived absence of systemic corruption as factors contributing to the UAE’s attractiveness to foreign investors. The UAE seeks to attract foreign direct investment (FDI) by i) not charging taxes or making restrictions on the repatriation of capital; ii) allowing relatively free movement into the country of labour and low barriers to entry (effective tariffs are five% for most goods); and iii) offering FDI incentives.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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