UAE construction sector to be insulated from impact of new VAT regime by Expo 2020

The imposition of a 5% value added tax (VAT) in the United Arab Emirates (UAE) in 2018 will not dent steel demand from the construction sector, market participants told Metal Bulletin this week.

They added that they expect construction activity to be supported by activity surrounding the Dubai Expo 2020.  The 5% VAT will come into effect in the UAE and Saudi Arabia from January 1, 2018 - the first time in the history of the two countries. But while prices for steel and other construction materials will rise in 2018 due to increasing demand and the addition of VAT, this will not negatively affect demand as construction activity will increase, a UAE market source told Metal Bulletin. Steel market participants in the...

Published

Serife Durmus

November 30, 2017

12:02 GMT

Bursa