The UAE's cultural and creative sectors must be flexible and innovative to continue growing in a post-pandemic world, a new report says.
Future Trends: Culture and the Creative Sector – released by Dubai Future Foundation in partnership with Dubai Culture and Arts Authority – looks at the restrictions caused by the pandemic and the impact it has had on the sector.
“In light of these exceptional circumstances, it is imperative that all those in charge of the sector in Dubai and the UAE intensify efforts and take measures to develop mechanisms and solutions to support the creative community and enable it to ensure its continuity and prosperity in the future, especially for small companies and independent entrepreneurs working in this sector,” said Hala Badri, director general of Dubai Culture and Arts Authority.
Badri said that Dubai Culture is conducting studies to see how the challenges facing the creative community can be relieved.
“These studies also aim to create innovative solutions that contribute to financing and supporting the continuity of innovators, emerging companies, and cultural and creative entrepreneurs, while also attracting new talents. Our co-operation with the Dubai Future Foundation in issuing this report is part of this effort," she says.
According to Badri, it's important to develop policies and legislation that would protect the rights of artists and creators, while ensuring the highest standards of intellectual property.
"Our efforts in that regard are progressing, and we are working to build a comprehensive and sustainable system to develop creativity in Dubai,” she says.
Khalfan Belhoul, chief executive of Dubai Future Foundation, agrees that technological tools – such as moving art gallery sales online or museums hosting virtual tours – offer new opportunities to gain a more global audience.
"This also allows individuals interested in exploring cultural experiences in a digital realm and those unable to travel due to Covid-19 restrictions the option of trying out such experiences easily," he says.
He says the pandemic has underlined the urgent need to accelerate tech-focused apps for all sectors.
The report also touches on the importance of financial support from the government. In May, the UAE's Ministry of Culture and Youth launched the National Creative Relief Programme, providing Dh4.6 million ($1.2m) of grants within the country's creative sector. Similar initiatives were also introduced in the UK, Australia, South Africa and Sweden.
Back in April, Dubai Culture also joined forces with Art Jameel to launch an initiative that gave micro-grants to 75 artists.
The report recommends that governments continue to pledge financial support, such as rent relief, utility bill support, licence-fee waivers, support grants, customs and VAT-fee waivers. The goal is to ensure the continuity of creative talent and support the creative community.
To read the full report, click here.
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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
