The world's second-tallest skyscraper has reached its final height, only 150 metres short of the current record holder for the tallest building, Dubai's Burj Khalifa.
The pointed spire atop the Merdeka 118 in Downtown Kuala Lumpur has been completed, making it the second-tallest building in the world at 678.9 metres, and stealing the title from China's Shanghai Tower, which stands 632 metres tall. Burj Khalifa, which opened in January 2010, still towers above all at 828 metres.
Designed by Australian firm Fender Katsalidis, Merdeka 118 is scheduled to be completed in late 2022. Built on the historically significant Merdeka site, where Malaysia's independence was declared in 1957, the building’s 118 storeys will house offices and a hotel, topped by a dual-level observation deck and a restaurant, which is expected to be the highest in South-East Asia.
The building’s exterior design is modelled on triangular shapes found in traditional Malaysian arts and crafts, Fender Katsalidis says on its website, while elements of the theme are also used in the interiors.
"Seemingly cleft from solid stone, it comprises a lower lobby for hotel access at one end, and at the opposite end, an upper lobby for the offices and retail," the description reads.
Initially scheduled to be completed last year, the construction of Merdeka 118, which began in 2015, was delayed by more than six months in 2019 owing to the Covid-19 pandemic. The project has a budget of 5 billion Malaysian ringgits ($1.1 billion).
"We feel incredibly proud to have contributed to the creation of this building and its host of community assets which enrich one of the most culturally significant sites in Malaysia," Fender Katsalidis, co-founder Karl Fender, told architecture and design magazine Dezeen.
"This building and its surrounding precinct has added an aspirational sense of new place to the city's identity, and has at the same time enabled much-needed major improvement to the pedestrian and traffic infrastructure of the area."
The 128-storey Shanghai Tower houses the J Hotel Shanghai Tower, which opened in July and is now the world's highest hotel. While the Burj Khalifa also has the Armani Hotel Dubai, it occupies floors one to eight of the world’s tallest tower, as well as floors 38 and 39.
Scroll through the gallery below for pictures of the tallest buildings in the Middle East:
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE cricketers abroad
Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.
Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.
Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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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