United Arab Emirates

Main Business Activities

• Upstream and Integrated Gas
• Downstream
• Chemicals
• Trading and Supply
• Other support activities

Shell has been active in the UAE since 1939. Shell businesses are set up as branches of foreign entities. Upstream is represented by Shell Abu Dhabi B.V. (SAD BV) and Shell EP International Limited (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 Limited (SITME). In 2009, SITME 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) Limited (SMME) and Shell Trading (M.E.) Private Limited (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 revenues from certain activities, including those from petroleum operations which are subject to corporate income tax at 55%. Additional taxes, such as royalties or gas tax, may also be due and are based on individual agreements with the government. The tax paid by Shell in the UAE mainly relates to upstream activities. Revenues are taxed in line with the agreement with the government. In 2020, a greater proportion of revenues arose from downstream activities that are not subject to income tax.

COVID-19 negatively impacted revenues and contributed to lower overall tax in 2020.