Study Highlights ADGM's Aviation Leasing Offering
by Lorys Charalambous, Lowtax.net, Cyprus
05 October, 2017
Abu Dhabi Global Market (ADGM), the international low-tax financial center in Abu Dhabi, has drawn attention to independent research it commissioned into its appeal as an aircraft financing and leasing hub.
ADGM worked with PwC, the international accounting firm, to compare its offering with that of traditional global hubs for aviation finance in Ireland, Singapore, Hong Kong, and the Cayman Islands.
The PwC research highlights the United Arab Emirates's (UAE's) extensive network of tax treaties as a key attraction for ADGM companies conducting aircraft finance and leasing activities, with 83 in force and a further 32 in various stages of negotiation, signature, or ratification. The research shows the UAE has a wider tax treaty network than comparable jurisdictions, with particularly strong coverage in Central Asia, Africa, and the burgeoning aviation markets of India and Indonesia.
Commenting on the research, Dhaher Bin Dhaher Al Mheiri, CEO of ADGM's Registration Authority, said: "The Middle East has a vibrant aviation landscape, with expanding airports and growing fleets to address global demand well into the next decade. The aviation industry is one of the key economic sectors of Abu Dhabi and the UAE."
"As an international financial center, ADGM continues to actively support and facilitate the industry's demand for efficient financing and leasing arrangements for our domestic airlines," he continued. International players can tap [into] ADGM's proven platform as their launch pad into the region's fast-growing economies and access exciting business opportunities and growth."
ADGM is an international financial center established in 2013. It offers a range of attractive benefits to firms, including exemption from taxes guaranteed for 50 years, and relaxed rules on the repatriation of profits. ADGM permits 100 percent foreign ownership.
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