- As an island on the Indian Ocean off the coast of East Africa, Zanzibar acts as a gateway for the United Arab Emirates (UAE) to the inside of Africa.
- Commerce between Qatar and Tanzania amounted to $87.08 million final 12 months in contrast with $77.5 million in 2021, a 12 per cent improve.
- Removing of double taxation will definitely assist, as it can improve Direct Overseas Funding from the UAE to Zanzibar and Tanzania at massive.
Commerce between Qatar and Tanzania amounted to $87.08 million final 12 months in contrast with $77.5 million in 2021, a 12 per cent improve. Furthermore, Qatar’s exports to Tanzania have elevated yearly to 36.6 per cent, from $15.6 thousand in 1996 to $37.8 million in 2021.
A recent meeting between the President of Zanzibar, Dr Hussein Ali Mwinyi and Qatar’s First Vice-Chairman, Mohamed bin Twar Al Kuwari highlighted these figures. The 2 high-ranking officers met in Qatar. The Zanzibar president known as on buyers from the wealthy United Arab Emirates to put money into the island.
The president highlighted key funding alternatives on the island, together with tourism, hospitality, actual property, and power sectors. Native media quoted an official assertion noting that; “the assembly mentioned the bilateral relations between each international locations within the industrial and financial fields and the means to reinforce them.”
Dr Hussein Ali Mwinyi took the chance to spotlight Zanzibar’s important financial improvement over the previous few years. He identified the necessity for elevated sustainable investments from Qatar and the remainder of the United Arab Emirates. Such investments may help the island preserve its present financial progress trajectory.
Zanzibar’s financial strategic positioning
Notably, Zanzibar has an economically strategic geographical location. Consequently, this positioning offers the island the membership advantages of a number of financial blocs. These embrace the Southern African Improvement Group (SADC), the East African Group (EAC) and, after all, the African Continental Free Commerce Space (AfCFTA).
As an island on the Indian Ocean off the coast of East Africa, Zanzibar acts as a gateway for the United Arab Emirates (UAE) to the inside of Africa. A delegation of high-ranking officers from numerous financial authorities in Tanzania and Zanzibar, together with the Zanzibar Funding Promotion Authority (ZIPA) and Tanzania Funding Centre, accompanied President Mwinyi to assist make his financial funding case.
President Mwinyi added that Zanzibar is concerned with creating convention tourism, particularly with enticing vacationer resorts and its curiosity in heritage. In response, Qatar’s Mohamed bin Twar Al Kuwari stated Zanzibar is a vital tourism vacation spot for many of the UAE. He additionally acknowledged that Zanzibar presents a gateway to Africa’s inside and important commerce alternatives.
Learn additionally: Tanzania, Qatar end double taxation inking trade and investment pact
Zanzibar-Qatar bilateral relations
President of Zanzibar, Dr Hussein Ali Mwinyi, and his delegation met Officers from the Qatar Chamber led by first vice-chairman Mohamed bin Towar al-Kuwari and board member Mohamed bin Ahmed al-Obaidli and deliberated on bilateral relations between the 2 international locations.
The dialogue desk included issues concerning the industrial and financial fields, the best way to improve them, and methods to develop commerce relations between the 2 international locations. On his half, Zanzibar President Mwinyi acknowledged Qatar’s nice financial achievement and famous that it presents an excellent alternative for Zanzibar to study, adapt, and commerce.
The president took the chance to ask Qatari businessmen to put money into Zanzibar in sectors together with infrastructure, actual property, tourism, hospitality, agriculture, trade, and power, all of which President Mwinyi stated presents the UAE large funding potential.
Qatar’s First Vice President Al-Kuwari famous that he’s happy with the funding alternatives in Zanzibar for Qatar and the UAE.
“Zanzibar is a vital tourism vacation spot. The time is suitable to discover funding alternatives there to strengthen cooperation between each international locations. Qatar Chamber helps this cooperation and is ready to host a seminar highlighting the alternatives out there in Zanzibar amongst Qatari buyers,” al-Kuwari stated.
MOU on the removing of double taxation
Notably, Tanzania and Qatar signed an MoU final 12 months to finish double taxation and strengthen commerce and funding ties with the United Arab Emirates (UAE).
In final 12 months’s assembly, Tanzania’s President Samia Hassan met with Qatar’s Finance Minister, Ali bin Ahmed Al Kuwari. The 2 leaders mentioned the problem of scrapping double taxation for items exported and imported between the 2 international locations, a transfer that may assist strengthen commerce and funding.
In that deal, the 2 international locations agreed to scrap double taxation, fight evasion to strengthen tax cooperation and improve commerce and funding stream between the 2 international locations.
Double taxation happens when authorities and taxation officers in two international locations cost tax on explicit items or providers twice.
A previous article highlighting MoU between Qatar and Tanzania famous that double taxation may additionally happen in revenue taxation, particularly in worldwide commerce and funding. For example, a citizen from one nation earns a revenue from a enterprise abroad, and they’re charged revenue tax of their residence nation and once more within the nation the place their enterprise is located.
By agreeing to take away double taxation, the international locations additionally conform to take away boundaries to bilateral funding and commerce between one different.
Commerce between Zanzibar and Qatar is rising tremendously. In keeping with the United Nations COMTRADE database on worldwide commerce, Qatar’s exports to Zanzibar clocked $50.8 million in 2021. The report reveals that Zanzibar’s exports to Qatar stood at $25.4 million to Qatar, half of the worth it imported from Qatar in the identical interval.
This stability of commerce doesn’t favour Zanzibar, therefore the continuing efforts from the federal government to aim to extend commerce pacts. Removing of double taxation will definitely assist, as it can improve Direct Overseas Funding from the UAE to Zanzibar and Tanzania at massive.