On November 12, the minister of Foreign Affairs, Aloysio Nunes Ferreira, and the ambassador of the United Arab Emirates in Brazil, Hafsa Al Ulama, signed, in Brasília, a Convention between Brazil and the United Arab Emirates for the elimination of double taxation on income and the prevention of tax evasion.
Bilateral agreements on double taxation help create a stable legal environment and prevent tax evasion, thus facilitating trade and investment flows. This agreement should stimulate investments from UAE-based sovereign funds in Brazil. It should also prevent the triangulation of resources through financial markets on third countries, thus reducing distortions in the field of bilateral investments.
The stock of UAE direct investments in Brazil totals 70 million dollars, whereas Brazilian direct investments in the UAE have reached 52 million dollars.