Core Income Generating Activities (CIGA) are defined in the UAE Economic Substance Regulations as the activities that are of central importance to a Licensee for generating income from a Relevant Activity and may include the following:
Core Income Generating Activities
agreeing funding terms, identifying and acquiring assets to be leased (in case of leasing), setting terms and duration of any financing, monitoring agreements and managing risks.
taking management decisions, incurring operating expenses on behalf of Group and coordinating group activities.
branding, marketing and distribution where IP is akin to a trademark, or research & development where the IP is a patent or technical know-how.
Investment Fund Management Business
taking decisions on holding and selling investments, calculating risks and reserves, taking decisions on currency or interest fluctuations and hedging positions, preparing reports to investors and government authorities.
predicting and calculating risk, insuring or re-insuring against risk and providing Insurance Business services to clients, underwriting and reinsurance.
Distribution and Service Centre Business
transporting and storing component parts, materials or goods ready for sale, managing inventories, taking orders, providing consulting or other administrative services.
raising funds and managing risk, taking hedging positions, providing loans, credit or other financial services to customers, managing capital and preparing reports to investors or government authorities.
managing crew, overhauling and maintaining ships, overseeing shipping and determining what goods to order and when to deliver them.
For licensees who are required to establish Economic Substance, they must demonstrate in their substance report that they carry out the CIGA for their Relevant Activity in the UAE.