Oman to impose personal income tax on its high earners by 2028

Oman’s Sultan Haitham bin Tarik has approved a personal income tax law to be implemented on individuals earning more than $110,000 annually.

The measure, which will be imposed starting in 2028, positions Oman as the first Gulf state to levy personal income tax, part of broader efforts to diversify revenue away from oil.

An earlier draft proposing separate thresholds for Omanis and expatriates was rejected by the Sultan.

With 2.7 million workers – 1.8 million expatriates – the reform is projected to raise over $285 million annually.

Foreign direct investment surges in UAE as new trade pacts pile up

Foreign direct investment in the UAE soared 48% last year as the Gulf state bolstered its international ties through a series of free-trade agreements.

Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai, hailed the milestone on Thursday, calling the $45.5 billion (AED 167 billion) in FDI an “international vote of confidence” in the Emirati economy.

The UAE, which is the Arab world’s second-largest economy after Saudi Arabia, accounted for 37% of total foreign investment in the region, Sheikh Mohammed said, citing the U.N. Conference on Trade and Development’s 2024 World Investment Report.

The government has launched a series of initiatives that helped boost FDI, including reducing visa restrictions, speeding up professional licensing procedures, issuing golden visas for foreign residents and providing generous incentives to attract tech companies, The National reports.

The UAE also widened its campaign to sign free-trade pacts known as the Comprehensive Economic Partnership Agreements, adding deals with Costa Rica, South Korea, Chile and Australia in 2024.

Google injects $6 billion into UAE’s economy with AI push

The UAE’s expanding ties with Silicon Valley are paying dividends for the economy amid new joint investments in artificial intelligence.

Among the major contributors to the Gulf state’s economic growth last year was Google, whose products contributed $6 billion to GDP, according to a report released today by Public First, a London-based consulting firm.

The search company’s tools, particularly in advertising, mapping and through its YouTube and Gemini AI units, fueled growth in business and individual productivity, said the economic impact report, which was commissioned by Google.

“The report reflects our investment in accelerating the country’s ambitious journey towards a diversified, AI-powered economy,” Anthony Nakache, Google’s Managing Director for the Middle East and North Africa, said in the report’s introduction.

In the UAE, 63% of adults surveyed said they had used Gemini, Google’s AI assistant, and 90% of those users said it improved their productivity. More than two-thirds said Gemini was easier to use in Arabic than other AI chatbots.

The UAE plans to spend hundreds of billions of dollars to establish itself as a world leader in AI infrastructure, establishing partnerships through its G42 tech firm and MGX investment fund with firms including Microsoft, Nvidia, OpenAi and Oracle.