This bank in UAE has given salary hikes to adjust for inflation
Dubai’s biggest bank Emirates NBD has given most employees a pay rise of up to 8% to help cushion against rising costs of living driven by inflation, two sources familiar with the matter have told Reuters.
The increases varied according to seniority and were part of a mid-cycle salary adjustment for inflation, with top executives receiving smaller or no increases, the sources said.
Most employees received a pay rise of between 5% and 8%, with lower-paid staff receiving the biggest increase, one of the sources, who has direct knowledge of the matter, said.
Emirates NBD, majority owned by Dubai’s government, said it did not comment on staff-related matters.
“As a people-first organization and a leading employer, Emirates NBD has remained committed to initiatives and policies that support staff well-being, while adopting a robust employee recognition program,” a spokesperson added in an emailed response to a Reuters query.
It was not immediately clear if the salary increases were only for employees in the country. The bank also has operations in Egypt, India, Turkey and elsewhere.
Annual inflation in the oil-producing Gulf state reached 3.4% in the first quarter, according to the central bank, which has projected 5.6% inflation for the year. The UAE has not published monthly inflation figures this year.
The trajectory of price increases represents a significant turnaround from deflation throughout 2019, 2020 and the first seven months of 2021.
In recent months people have voiced concerns over increasing living costs in the UAE, with retail fuel prices now up around 55% so far this year, falling from a high of about 80%.
The UAE is the only Gulf Arab country without a cap on domestic fuel prices, leading to petrol costs surging at the pump.
Dubai average rental prices for apartments and townhouses rose by 29% and 33% in the first half of the year and for villas by 64%, according to Betterhomes, as the property market continued a strong post-pandemic recovery.
Emirates NBD in late July reported a 42% jump in second quarter profit to 3.5 billion dirhams ($952.98 million).
The Central Bank of the UAE has increased its base rate a cumulative 225 basis points since March in parallel with the US Federal Reserve, because its currency is pegged to the dollar, as central banks globally battle historic inflation.
UAE ministry clarifies on corporate tax for individuals
The UAE’s Ministry of Finance has clarified that individuals conducting business activities will be subject to corporate tax only if their combined turnover exceeds AED 1 million in a calendar year.
It added that personal income from employment, investments or real estate (without licensing requirements) will not be taxed.
For example, if a UAE resident operates an online business and the combined annual turnover from this business exceeds AED 1 million, under the new decision, the income from the online business would be subject to corporate tax.
The Ministry of Finance has announced the issuance of the UAE Cabinet Decision on Treatment of Natural Persons Undertaking a Business or Business Activity for Corporate Tax Law purposes.#CorporateTax #UAECT #mofuae pic.twitter.com/7dyCCkCVbS
— وزارة المالية | الإمارات (@MOFUAE) May 17, 2023
However, if the resident also earns income from a rental property and personal investments, these sources of income would not be subject to tax as they fall under the out-of-scope categories.
The UAE Cabinet Decision No. (49) of 2023 spells out the treatment of resident and non-resident individuals undertaking a business or business activity, for Corporate Tax Law purposes.
“The new Cabinet Decision demonstrates the UAE’s commitment to maintaining a clear and competitive tax framework for both local and foreign individual investors,” said Younis Haji Al Khouri, Undersecretary of the Ministry of Finance.
“By simplifying the Corporate Tax system, the UAE continues to foster an attractive business environment that supports the growth of small businesses, startups, and the overall economy,”
Kapil Dev bats for Thriwe as tech firm looks to thrive in UAE
Thriwe, the India-based benefits-as-platform company has announced some exciting and ambitious expansion plans in the region.
Thriwe recently hosted an exclusive fireside chat event titled “Power Drive with DRV at the Capital Club Dubai, featuring legendary Indian cricketer and former captain of the Indian cricket team, Kapil Dev, and founder-CEO Dhruv Verma. The conversation centred around meeting challenges, be it in the field of sports or business, entrepreneurial aspirations and growth.
Verma unveiled the company’s plans to increase its footprint across the UAE where it serves about 1.5 million customers through its 15 clients, including major banks such as Emirates NBD, FAB, Emirates Islamic, Commercial Bank of Dubai and Mashreq.
Over the years, the tech-driven B2B platform that was founded in 2011, has served global leaders in lifestyle and wellness, digital experiences, travel, retail and dining sectors by designing innovative loyalty solutions through rewards and benefits platforms and a seamless customer experience.
“The UAE has always been an exciting and important market for us. In the last couple of years, the country has shown remarkable resurgence after the pandemic, and the time is therefore, right for us to expand into new product categories here such as beach clubs, hotel memberships, and luxury lifestyle products,” says Verma adding that Saudi Arabia and Egypt are also on the horizon for the firm, over the next 18-24 months.
For more information, visit https://www.thriwe.com/
Jumbo Group donates Dh1 million to Dubai Cares for children’s education
The Jumbo Group has coincided the spirit of giving this Ramadan while remembering its founder Manohar Chhabria with a donation of Dh1 million to Dubai Cares for children’s education on Thursday.
Vikas Chadha, chief executive officer of Jumbo Group, handed over the one-million cheque to Tariq Al Gurg, his counterpart and the vice-chairman at Dubai Cares.
The day marked the 21st death anniversary of Chhabria who started Jumbo in 1973 as a retail agency and 50 years on, it has evolved into a group companies and is the UAE’s leading retailer for latest technology products.
In true Indian tradition of doing charity as a show of thanksgiving to the universe on behalf of Mr Chhabria, Jumbo Group’s contribution towards the cause of children’s education now amounts to a total of Dh6 million to date.
“The donation is part of Jumbo’s enduring support towards advancing the vision of the UAE’s wise leadership to empower children and youth through access to quality education,” Chadha said on behalf of Jumbo Group.
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Dubai Cares is an organisation that works to improve children’s access to quality primary education in the UAE as well as developing countries. The vision that the organisation wants to transmit is that education goes beyond training. It is a tool to break the cycle of poverty.
Apart from cash, organizations as well as individuals can also donate new or used devices such as desktop computers, laptops and tablets by filling out a donation form on www.dubaicares.ae.
Last year, Jumbo Group supported the 1 Billion Meals campaign, an initiative by the Dubai government, with a similar amount. “Our relationship with the UAE and its people was established over 45 years ago and we are proud to be able to contribute to such important initiatives,” Vidya Chhabria, chairperson of Jumbo Group, had said then.
“Ramadan is a time for self-reflection and charity and as a company Jumbo Group is in full support of the efforts made by the government here to help those in need.”