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:
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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
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Her most famous song
Aghadan Alqak (Would I Ever Find You Again)?
Would I ever find you again
You, the heaven of my love, my yearning and madness;
You, the kiss to my soul, my cheer and
sadness?
Would your lights ever break the night of my eyes again?
Would I ever find you again?
This world is volume and you're the notion,
This world is night and you're the lifetime,
This world is eyes and you're the vision,
This world is sky and you're the moon time,
Have mercy on the heart that belongs to you.
Lyrics: Al Hadi Adam; Composer: Mohammed Abdel Wahab