United Arab Emirates
PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
- Trading and Supply
- Other support activities
Shell has been active in the UAE since 1939. Under applicable corporate laws, Shell businesses are set up as branches of foreign entities.
Upstream is represented by Shell Abu Dhabi B.V. (SAD BV) and Shell Exploration and Production International Ltd (SEPIL). SAD BV holds an interest in a non-operated venture, its revenues being subject to tax on the basis of a concession agreement with the government of UAE. SEPIL is a regional hub for the business and provides specialised services to Shell entities in the Middle East.
Trading is represented by Shell International Trading Middle East (SITME), which engages in products trading and shipping activities in the Arabian Sea, the Arabian Gulf and parts of Africa. In 2009, it commenced LNG trading activities which expanded further following the acquisition of Repsol’s LNG business in 2014. Downstream is represented by Shell Markets (Middle East) Ltd. (SMME) and Shell Trading (M.E.) Private Ltd. (STME). SMME performs sales, marketing and distribution of aviation, marine, specialties, and lubricants products through third-party distributors. STME’s main activity is the marketing and distribution of chemicals and related products.
Country Financial Analysis
The UAE taxes specific revenues, including petroleum operations, which are subject to tax at 55% as well as additional taxes that are due. The tax paid by Shell in the UAE mainly relates to the upstream activities. Revenues are taxed in line with the agreement with the government. In 2019, a greater proportion of profits arose from downtream activities that are not subject to income tax.