Passage 2
Smooth Ride on the Road to Success
Dubai is concentrating on consolidating its position as the region's leading location for trade,business and pleasure and entertains few thoughts of changing a winning formula. In early November, customs officials ruled out any increase in the current four per cent import tariff, even though other GCC members have been calling on the UAE to raise levies, so that a uniform customs duty can be established. Govemment officials have also been quick to dismiss any suggestions that the emirate plans to introduce some form of income tax.
As the heavy investment continues in infrastructure, tourism and business conferences, Dubai is working on polishing its image. On the business front, the goverment is leading by example.In the interests of greater transparency, state-owned organizations like Emirates airline have started to publish financial results.The authorities are also working to ensure that services are delivered professionally.
The range of economic activity remains one of the UAE's great strengths in combating the periodic downturns in the oil market. Nevertheless it is widely acknowledged that the oil price continues to have a disproportionate bearing on the economy's well being and that further diversification is required.Strong emphasis is attached to the development of non-oil activity,whether it would be through joint stock investment companies, like the recently-formed Duba Investments, govemment agencies such as the UAW Offsets Group or private sector initiatives.
The attitude of the local private sector towards industrial investment varies considerably,although there are signs that more investors are becoming aware of its commercial benefits. "The old generation is still into real estate Says EBI's al-Jallaf. "Whenever they have some spare cash, they will invest it in land, as they consider it safe But here is also a whole new younger generation coming along, who knows that industry can deliver. What they tend to is to set up some venture which runs parallel to their trading activities.
50.Dubai is planning to levy income tax.