Deloitte experts weigh in on effects of FATCA compliance and economic impact of Expo 2020
Deloitte experts have commented on the changes that will occur as a result of the Expo 2020 Dubai win, as well as the challenges facing senior management in the GCC countries and wider MENA region as the countdown to FATCA becomes more imminent.
Deloitte experts believe that Expo 2020 will be a major “game changer for Dubai” whereby it will create significant changes – whether opportunities or challenges – in most industries and market sectors that could spill over to other countries in the region. “It is clear that Expo 2020 will go beyond a local showcase of commerce, technology and infrastructure, however impressive these things may be,” explains Mutasem Dajani, Deloitte United Arab Emirates regional managing partner. He adds: “Dubai will itself become an agent for future global progress as securing sustainable energy and resources, connecting and moving people, goods and services across markets and exploring the intrinsic spirit of entrepreneurship come together in a location that is uniquely synonymous with achievement in each of these areas.”
Humphry Hatton, CEO of Deloitte Corporate Finance Limited (DCFL) regulated by the DIFC, addresses international investments in the region and adds that hosting Expo 2020 in Dubai will, “further the attractiveness of Dubai as a base for overseas companies wishing to invest in the Middle East.”
Anis Sadek, Dubai managing partner at Deloitte points out that, “It only takes a quick analysis of the impact of an expected additional 20 million international visitors over a six-month period to see that significant investment in hospitality and retail infrastructure will be required.”
Rashid Bashir, head of the strategy practice at Deloitte Middle East cautions that, “it would be beneficial to develop a dedicated legacy plan to ensure that the event’s potential as a catalyst to transform Dubai’s economy is maximised”.
Their views are grouped in the report Expo 2020: A game changer for Dubai, and Countdown to FATCA.
Ali Kazimi, international tax services leader at Deloitte Middle East provides an overview of FATCA including the compliance requirements and the three main pillars of the FATCA compliance program (classification, reporting and withholding). “The changes brought on by FATCA will also undoubtedly cause major disruption in all companies as non-compliance could leave organisations and senior personnel open to significant financial and personal penalties,” Kazimi explains. “The complex regulations will require changes to internal systems, control frameworks and processes and procedures”.