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The UAE is a desert country with limited natural agricultural resources and as such is known to import at least 90% of its food, which has surfaced again and again as a concern for local authorities, especially in recent years when the COVID- 19 The pandemic has brought food global supply chains to a near standstill.
The authorities have now decided to take more concrete steps to tackle the problem, starting with directing local agencies to lead by example by providing more support for locally produced food.
“Local farms in the UAE produce a variety of produce such as salmon, quinoa and berries, [we are also looking to technology to expand these]such as growing grain in a closed system using recycled water,”Mariam Al Mheiri, Minister of the UAE Ministry of Climate Change and Environment (MoCCAE), said in an official statement.
“In November 2022, the UAE took a decision and issued a directive to various government agencies, including hospitals and the armed forces, to prioritize the procurement of local agricultural products to support local agricultural technology work.of
“The UAE supports open trade and wants to keep it going, but [also want to encourage] A certain percentage of some food products are purchased locally, especially in [we have control] Purchasing and purchasing decisions. “of
The ministry is also looking at improving local technology and equipment to increase the quality and speed of food production, thereby improving food safety, and is even engaging with Dubai Customs authorities on ways to import these products, although specific targets have yet to be announced.
“The local Abu Dhabi accelerator program has invested over US$150 million to attract these companies to the UAE, which is crucial as we face issues such as water scarcity and lack of arable land,”Almery added.
“There is a real urgency to prepare for the new climate reality [from a food supply perspective] As food and water insecurity is one of the aspects exacerbated by climate change, [and] The Middle East is one of the most vulnerable regions in the world to the impacts of climate change. “of
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In addition to the immediate food safety requirements, the UAE has also implemented a new corporate tax, which will come into effect on June 1, 2023, in what is described as a move to normalize the UAE’s tax policy and enhance its global competitiveness, including its food and beverage Develop and transform industries to improve local security.
This will see all businesses with profits exceeding AED375,000 (US$102,000) pay 9 percent corporate tax from that date.
“All businesses not exceeding the specified amount of AED 375,000 are exempt from this tax, nor are existing free zone entities (regardless of gross income), which does not apply to wages or any other personal income,”The UAE Finance Ministry said in a separate statement.
“Taxes apply to all organizations [doing business in the UAE] This will apply regardless of the citizenship or residency status of the business owner. “of
This new tax strategy is expected to hit multinational food and beverage companies the hardest, given that they earn greater profits in the country.
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