Abu Dhabi, 26 March, 2012: In line with efforts to strengthen partnerships between the UAE and the Republic of Montenegro to promote investments between both countries and to provide protection from all non-commercial risks; the Ministry of Finance (MoF) today signed two agreements. The initiative aims to protect and promote mutual operations, and to provide tax and financial benefits to the state’s investments in both its public and private sectors, thus contributing to diversifying the sources of the national income and achieving economic balance for the Republic of Montenegro.
The signing ceremony took place at the headquarters of the ministry in Abu Dhabi. Both agreements were signed by HE Younis Haji Khouri, Undersecretary of MoF, on behalf of the UAE, Montenegro’s Deputy Minister of Finance, Biljana Scekic, signed the agreement to avoid double taxation, while Goran Scepanovic, Deputy Minister in the Ministry of Economy, , signed the convention on the protection and promotion of investments.
In this context, HE Al Khouri said that the UAE pays special attention to strengthening and promoting its economic, investment and trade relations with the Republic of Montenegro to include all areas of common interest. HE noted that the strategic location of the Republic of Montenegro makes it an important regional centre for the flow of investments towards its partners in the European Union, especially since Montenegro has implemented strategic policies and medium-term plans for economic reform. , Montenegro was also succesful in setting the privatization and investment laws that treat foreign investors the way citizens are treated, providing them the with the right to establish their companies instantly.
In addition to determining tax costs, HE Al Khouri also explained that one of the major advantages of these conventions is that it grants exemptions for government institutions from dividend tax, corporate tax, interest tax, capital gains tax, in addition to reducing other tax burdens. HE also noted that the UAE came in at third place in the list of countries that have signed agreements with Montenegro to avoid double taxation of income.
HE Hafsa Al Ulama, the UAE Ambassador to Montenegro, highlighted the importance of the conventions that came as an effort of MoF, in coordination with the Ministry of Foreign Affairs, where she expressed her aspirations to increase trade and open investments between both countries, as per the two agreements.