Finance Ministry yet to renew SIDN agreement with Qatar, Saudi Arabia.
Gist of the Latest Financial Agreements: A Breakdown
The Russian Union of Industrialists and Entrepreneurs recently announced that Qatar and Saudi Arabia are set to ink SIDN agreements. This announcement comes as Russia is reportedly renegotiating a similar deal with the UAE, whose need for an agreement arose due to the surging bilateral investment relations. The Ministry of Finance has stated it will continue reviewing tax treaties with countries of mutual interest.
In 2024, Forbes highlighted the necessity for the UAE to renegotiate the SIDN with Russia on favorable terms, matching those in existing agreements with Qatar (since 1998) and Saudi Arabia (since 2007). Both treaties feature a 5% tax rate on dividends for ordinary businesses, with state-owned companies and certain other categories benefiting from a 0% rate.
An update from the Ministry of Finance on the potential SIDN with the UAE revealed that such an agreement would be beneficial when "similar levels of relations" emerge. As of now, there isn't sufficient investment activity necessitating an accord with these Middle Eastern nations.
On February 17, Russia and the UAE officially signed a tax treaty in Abu Dhabi. Companies in both nations earning passive income will be subject to a 10% withholding tax on interest, dividends, and royalties, under the "10-10-10" formula.
Official Agreements or Investment Deals?
Recent headlines highlight large-scale financial and investment deals initiated by former President Trump during his 2025 Middle East trip, including a $1.2 trillion economic exchange commitment from Qatar[3] and Saudi Arabia's foray into AI, partnering with US tech giants Nvidia and AMD[3]. The UAE is steering advanced defense and high-tech manufacturing ventures, with projects like gallium production and counter-drone capabilities in collaboration with US firms RTX and Raytheon[2].
Focus remains on US Relations
Despite the growing interest in agreements with Gulf countries, no presently available sources offer explicit details about SIDN agreements between Russia and these nations or their tax rates and benefits. The focus continues to center on US relations and significant financial deals with Saudi Arabia, Qatar, and the UAE in the technology, defense, and investment sectors[1][2][3][4].
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#Ministry of Finance#Qatar#Saudi Arabia#UAE
The Ministry of Finance is considering potential SIDN agreements with Qatar, Saudi Arabia, and the UAE, as the need for such accords arises due to surging bilateral investment relations, like in the case of the UAE and Russia. These treaties, such as the ones between Qatar (since 1998) and Saudi Arabia (since 2007), often feature favorable tax rates on dividends for both ordinary businesses and state-owned companies.
