Aircraft lessor Dubai Aerospace Enterprise (DAE) said on Tuesday that it had signed a definitive agreement to acquire Nordic Aviation Capital (NAC), an aircraft leasing company formed over 30 years ago, without disclosing the value of the transaction.

DAE said that the acquisition will be capitalised and funded by internal resources along with committed debt financing. It is projected to be completed in the first half of 2025, subject to regulatory and shareholder approvals.

“This transaction will allow us to provide more cost-effective solutions to a larger group of customers,” said Firoz Tarapore, CEO of DAE.

DAE Capital’s fleet will expand to approximately 750 aircraft – owned, managed, and committed – worth around $22bn upon deal closure. The aircraft will be leased to roughly 170 airlines in approximately 70 countries.

NAC’s fleet comprised 252 owned and committed assets on lease to approximately 60 airline customers in approximately 40 countries as of September 2024.

Meanwhile, between October and December 2024, DAE settled claims with select insurance companies, receiving approximately $201m in cash proceeds. The claims related to aircraft previously leased to airlines in Russia.

To date, the aircraft leasing company has received $319m in cash proceeds, including a 2023 settlement for seven aircraft.

DEA acquired 33 aircraft from multiple sellers in a deal valued at approximately $1.6bn last August. The acquired aircraft portfolios have a weighted average age of 4.4 years, a weighted average remaining lease term of 8 years and are on lease to 17 airlines in 13 countries.

The company’s order book positions extend until Q2 2026. However, continued delivery uncertainty from Boeing is causing delays in near-term deliveries.

DEA’s nine-month profit before tax jumped by 57 per cent to $326.6m, while its revenue reached a record $1.02bn from $989.2m for the same period in 2023.

Founded in 1985, DEA serves more than 170 airline customers in over 65 countries. The group’s leasing division manages a fleet of about 425 Airbus, ATR, and Boeing aircraft with a value exceeding $18bn.

Read: UAE’s DAE, AXA clinch deal as battle over jets ‘lost’ in Russia kicks off

The Gulf Cooperation Council (GCC) is currently going through its most significant fiscal transformation since its formation.

For years, the region has attracted multinational corporations with a ‘zero taxation’ regime, leading to the perception by businesses and governments globally that companies are moving to the region with a view to profit shifting to minimise tax burdens.

Now, a global minimum corporate tax rate of 15 per cent, championed by the OECD and embraced by more than 140 countries, is seeking to dismantle this practice.

Under the proposed tax regime, which is being legislated in several countries including the GCC, large Multinational enterprises (MNEs) with global turnover over EUR 750m equivalent in two out of four previous years will operate under greater transparency. They now have to pay their fair share of taxes at a minimum rate of 15 per cent, regardless of which country they operate in or have legal presence. For example, a company headquartered in London, with operations spanning Dubai and Manama, can no longer exploit the low tax regime of UAE and Manama to reduce overall group tax liability.

The regional response

In response to these global standards, the UAE implemented a 9 per cent corporate tax rate starting June 2023 for businesses with profits over Dhs375,000. Crucially, these reforms are not scorched-earth taxation: the UAE offers a complete exemption for SMEs with turnover under Dhs3m, besides other exemptions and incentives such as free zone relief at zer per cent tax rate.

The introduction of these measures helps the UAE align with international tax standards while preserving its competitive advantage through strategic exemptions and maintaining its position as a global business hub, alongside established financial hubs such as Singapore (headline tax rate of 17per cent) and Hong Kong (headline tax rate of 16.5 per cent).

While the UAE has taken the lead by implementing its corporate tax law and announcing plans for additional global tax measures, other GCC nations are progressively adapting to global tax initiatives. Kuwait has matched the global standard with a 15 per cent tax rate on local and foreign businesses, Qatar maintains 10 per cent tax rate while planning global minimum tax reforms, and Bahrain’s new global minimum tax regulations take effect in 2025.

Saudi Arabia and Oman are likely to follow suit with similar measures since they have also signed up to the OECD BEPS global minimum tax measures, creating a regionally coordinated approach to taxation.

Since 2018, the GCC has implemented value-added tax (VAT) in phases. The UAE and Saudi Arabia were first movers, with Bahrain and Oman following suit. While there is no formal announcement, Qatar and Kuwait could soon implement VAT in the next two to three years. While most countries started with a 5 per cent rate, Bahrain and Saudi Arabia have since increased it to 10 per cent and 15 per cent respectively, demonstrating sovereignty over tax rates.

GCC nations: Future outlook

Research demonstrates that a well-implemented corporate and international tax system positively impacts economic growth through increased employment, stimulated business expansion, and attracting new investment. Furthermore, additional tax revenue enables governments to invest in infrastructure and services.

While Oman considers personal income tax for high earners, the GCC’s zero personal tax policy remains a crucial differentiator. This strategic decision maintains the region’s edge over competing financial hubs, where personal tax rates often exceed 20 per cent. Regional recruiters report sustained interest from global talent.

The UAE and other GCC nations are moving on from being passive recipients of global capital to becoming active, strategically minded economic players on the global stage.

After Saudi Arabia recently transitioned to electronic invoicing (e-invoicing), the UAE is following suit with mandated e-invoicing for B2B and B2G transactions by July 2026. This initiative represents a strategic move toward digitalising tax infrastructure and enhancing transparency.

The real-time generation, exchange, and storage of electronic invoices aims to minimise human error, reduce fraud risk, and improve overall system efficiency.

E-invoicing offers SMEs access to sophisticated invoicing practices to enhance operational efficiency and competitiveness.

For larger businesses, it presents an opportunity to modernise operations, reduce costs, and build stronger relationships with regulators.

The initiative reinforces the UAE’s position as a regional leader in economic innovation and digital transformation.

Short-term adjustments are inevitable as businesses will see immediate impacts on their bottom line. However, the long-term vision is clear: a more robust, diversified, and resilient economic environment that attracts quality investments and talent.

The introduction of digital tax administration, including e-invoicing, signals the region’s commitment to technological innovation. With the introduction of corporate tax and global minimum tax law, coupled with e-invoicing and increased digitalisation, this isn’t just about collecting taxes. It is about creating a transparent, efficient economic ecosystem that can compete on the global stage.

The writer is the senior managing director and head of Tax ME, FTI Consulting.

Jordan’s foreign direct investment (FDI) inflows reached $457.8m during Q3 2024, marking a 3.7 per cent increase compared to the same period in 2023, according to preliminary data from the balance of payment, according to Central Bank of Jordan (CBJ).

These inflows accounted for 3.2 per cent of the country’s GDP, maintaining a stable share and highlighting the continued appeal of Jordan’s economy to international investors, despite regional challenges.

For the first three quarters of 2024, total FDI inflows to Jordan amounted to $1.3 bn, or 3.3 per cent of GDP. While this represents a decline from $1.6 bn during the same period in 2023, the current figures remain higher than the cumulative FDI recorded in both 2021 and 2022, indicating sustained investor confidence in Jordan’s economic prospects.

According to the report by the Jordan News Agency (Petra), Arab countries contributed nearly half (49.1 per cent) of the total FDI inflows, with Gulf Cooperation Council (GCC) nations making up 31.7 per cent.

European Union countries accounted for 11.5 per cent of the total FDI, with the Netherlands leading the way at 4.9 per cent, followed by France at 3.5 per cent.

Non-Arab Asian countries contributed 7.2 per cent, with China (2.5 per cent) and India (2.1 per cent) being the largest investors in this category.

The remaining 32.2 per cent of FDI came from other regions.

Financial and insurance sector attracted the largest share of FDI into Jordan

In terms of sectoral distribution, the financial and insurance sector attracted the largest share of FDI, accounting for 15.7 per cent of total inflows.

Manufacturing industries followed with 7.7 per cent, while information and communication received 7.5 per cent.

The mining and quarrying sector attracted 7.3 per cent, and transportation and storage garnered 7.0 per cent. Wholesale and retail trade accounted for 6.1 per cent of FDI.

Real estate and land investments by non-Jordanian individuals also represented a significant portion, contributing 14.9 per cent to the total FDI inflows during the period.

The latest figures underscore Jordan‘s ongoing attractiveness as an investment destination, bolstered by its strategic position in the region, growing infrastructure, and efforts to diversify its economy.

Despite global uncertainties and regional instability, the country has managed to maintain steady FDI inflows, particularly from key regional and international partners.

Its government has been focused on enhancing the investment climate and improving economic resilience, making it an increasingly viable hub for international capital.

Dubai property giant DAMAC Group’s chairman Hussain Sajwani promised a $20bn investment in the booming US data centre industry in the coming years, he and US President-elect Donald Trump announced on Tuesday at Trump’s home in Palm Beach, Florida.

“They may go double, or even somewhat more than double, that amount of money,” President-elect Trump said of DAMAC Group.

The construction of new data centres by EDGNEX Data Centers, a unit of DAMAC, in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana will generate employment opportunities for thousands of Americans.

“This is an extremely exciting moment for us. Our foray into the US market in data centres represents a significant milestone in our journey to build a global digital infrastructure platform that will empower businesses today and in the future,” Sajwani said in a statement.

The “first phase” of EDGNEX’s expansion will involve strategic partnerships, land acquisition alongside utilities, and the purchase of existing data centres and platforms. Phase 1 will establish approximately 500MW of capacity, with one facility in the Sunbelt and another in the Midwest.

Sajwani’s pledge is the latest example of a foreign business leader promising to spend heavily in the US after Trump’s election victory over Democratic Vice President Kamala Harris.

Last month, Softbank CEO Masayoshi Son unveiled plans to invest $100bn in the US and create 100,000 jobs over the course of Trump’s four-year term.

Meanwhile, DAMAC has ramped up investment in the buoyant artificial intelligence (AI) sector with a $50m Anthropic deal. The group has also made significant investments in xAI, an American AI startup founded by Elon Musk, and Mistral, a French AI firm.

Earlier in December, EDGNEX and PPC Group announced plans to develop a cutting-edge data centre in Spata, East Attica, Greece, through a new joint venture called Data In Scale.

With operations in 10 countries, including the UAE, Malaysia, and Italy, EDGNEX’s projected capacity exceeds 1000MW. The company’s current operational data centres include over 10MW in Saudi Arabia and 5MW in Thailand (coming online in Q1 2025).

DAMAC’s US investments extend beyond data centres, encompassing real estate and private equity. The property developer is developing a $1bn Miami condo project (designed by Zaha Hadid Architects).

Read: DAMAC Group ramps up AI investments with $50m Anthropic deal

Bahrain’s gross domestic product (GDP) grew by 2.1 per cent in constant prices during Q3 2024 compared to the same period in the previous year, according to the latest data from the Information & eGovernment Authority.

According to a report published by the Bahrain News Agency, the country’s GDP at constant prices reached BD3,734m, while at current prices it totaled BD4,342m during the third quarter.

The growth was primarily driven by the non-oil sector, which saw an increase of 3.9 per cent at constant prices and 1.5 per cent at current prices, reflecting the continued diversification of Bahrain’s economy away from its reliance on oil.

In terms of sector contributions, the manufacturing sector ranked first among non-oil activities, accounting for 20.1 per cent of Bahrain’s GDP at current prices. This was followed by financial and insurance activities, which contributed 17 per cent to the country’s overall economic output.

The report also highlighted significant growth in certain sub-sectors.

According to preliminary estimates, professional, scientific, and technical activities recorded the highest growth rate at constant prices, with an increase of 13.8 per cent. This was followed by information and communication activities, which saw a growth rate of 11.9 per cent, both on an annual basis.

Bahrain focused on diversification

The strong performance of these sectors reflects Bahrain’s efforts to foster economic diversification, particularly in high-value industries such as manufacturing, finance, and technology.

The Information & eGovernment Authority noted that the positive GDP growth is part of the kingdom’s broader economic strategy to reduce its dependence on oil revenues, focusing on non-oil industries as key drivers of future growth.

Bahrain’s ongoing economic development initiatives have been aligned with its Vision 2030 plan, which seeks to create a more sustainable and diversified economy through investments in innovation, digital infrastructure, and skilled sectors.