UAE to Withstand US Crude Exports Unaffected

UAE to Withstand US Crude Exports Unaffected
Suhail bin Mohammed al-Mazroui, UAE Oil Minister speaks during the 6th Gulf Intelligence UAE Energy Forum in Abu Dhabi, United Arab Emirates, Tuesday, Jan. 13, 2015. (AP Photo/Kamran Jebreili)

In the aftermath of America’s landmark decision to remove the ban on crude oil exports, UAE’s Minister of Energy, Suhail bin Mohammed Faraj Faris Al Mazrouei said that the move would not affect market fundamentals or change the supply and demand balance, the Emirates News Agency reported.

The minister added that he hoped the oil market would balance during 2016. The Energy Ministry’s plans are moving ahead unabated in line with the 2021 Vision, which includes “lifting fuel subsidies and rationalizing energy consumption” – with natural gas usage for power generation to be reduced to 70% by 2021.

Meanwhile, Gulf Times reported that the UAE had no plans to tax incomes of individuals or remittances transferred abroad by foreign workers in the country, despite low oil prices, imposed subsidy cuts, and plans to introduce value-added tax in 2018. The UAE is studying reforms to increase taxation of corporations, but is mindful of increasing companies’ wage costs and reducing the attractiveness of the UAE as a regional business hub through income and remittance taxes.

In related news, Reuters informed that Abu Dhabi National Oil Co (ADNOC) had launched a new international firm capitalized at $1b to invest in oil and gas industry abroad. It will also own and run oil and gas firms and assets for exploration, drilling, production, marketing, refining, and distribution both inside and outside of Abu Dhabi. ADNOC International Limited – to be based in Abu Dhabi – will be fully owned by the ADNOC mother company, yet independent from it.

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