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:
Relevant Activity | Core Income Generating Activities |
Lease-Finance | 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. |
Headquarters | taking management decisions, incurring operating expenses on behalf of Group and coordinating group activities. |
IP Business | 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. |
Insurance Business | 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. |
Banking Business | 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. |
Shipping Business | 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.