The National

Football fans are the losers after league dissolved

Disbanding the UAE's professional football league has left the country's clubs, and the national team, in a state of uncertainty.

National Editorial

June 22, 2011

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In an age when sport has become such big business, it is easy to lose sight of the most important priority: the fans. In this respect, UAE football officials have again failed the game's once-loyal following in the country.

On Monday, Ibrahim Abdul Malik, the secretary general of the General Authority of Youth and Sports Welfare, stunned fans by dissolving the nation's first fully professional league, popularly known as the UAE Football League. The national Football Association plans to organise the clubs into another league and promises continuity. There is, however, no denying the sense of confusion.

The crisis comes at a time when clubs are preparing for the start of the new season in September and, crucially, as the national team attempts to qualify for the 2012 Olympics.

Building that kind of team is hard enough, but now clubs, players and fans are unsure about the future of their sport. "Everyone is in a state of shock," an anonymous club executive said. "Everything is up in the air."

Players as well as fans deserve better than this. It hardly inspires confidence when behind-the-scenes politics seem to be in control of the sport. The league was disbanded because it had "repeatedly ignored the authority's warnings" to "abide by the official original name", the League of Pro Football Clubs. This shows the disconnect between officials and fans - who could not care less about the formal league name as long as they are offered quality football.

One of UAE football's failings over the last decade has been poor attendance. There are several reasons. First, the country's fan base is simply not large enough to provide significant support for 12 top-division clubs. More inexplicably, the clubs themselves have done too little to encourage attendance and have been happy to coast along on the generosity of owners and benefactors. In that respect, Abu Dhabi's Al Jazira Club deserves credit for several promotions that boosted crowds last season. That they were crowned champions was just deserts.

Clubs also have to compete with the blanket coverage of international football on television. High-profile deals, such as Al Wasl's appointment of Diego Maradona, pique fans' interest briefly, but are no substitute for a long-term strategy at the grassroots level.

In 1990, the UAE qualified for the World Cup in Italy thanks to a golden generation of players produced by the country's best clubs. For such heights to be reached again, football authorities need to focus on the playing field, not the politics.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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