Middle East Transfer Pricing Overview

Posted 28/9/2018 by Aaron Lesley

Big 4 tax teams have existed for many years in the Middle East, however only recently has the creation of specialist transfer pricing teams emerged in this market. This has brought with it numerous opportunities for Transfer Pricing professionals to not only experience a different culture but to get in on the ground floor and help grow and develop transfer pricing practices.

In an increasingly mature global transfer pricing landscape, these opportunities are rare but highly rewarding. Senior Partners have been recruited to provide a deep level of expertise for a wide range of transfer pricing and restructuring solutions to Multinational clients across the region.

With the additional, significant global investment from Sovereign Wealth Funds post Global Financial Crisis, this has presented a number of challenging tax and transfer pricing risks to consider. With more than 40 Sovereign Wealth Funds (SWFs) created since 2006 and with approximately 100 Sovereign Funds controlling $5000BN collectively, this figure accounts for more than 2% of the world’s bonds and equities markets. Interestingly, over two-thirds of these assets are held by 6 funds located in the UAE (managing over $800bn in assets), with Saudi Arabia and Kuwait holding $400bn and $300bn respectively.

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