Hotels in Dubai recorded a 16.8 per cent surge in occupancy in the first 10 months of the year as the Emirate's tourism sector continues to recover from the coronavirus pandemic.
The average daily rate as well as revenue per available room (RevPar) in Dubai rose 14.9 per cent and 57.1 per cent, respectively, from January to October, according to a report from global consultancy CBRE.
RevPar is a key performance metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate.
Hotel occupancy across the UAE, meanwhile, rose 13.6 per cent during the period with RevPar surging by 44.9 per cent, as per the CBRE estimates.
“In October 2021, with the commencement of Expo 2020 and increasing levels of international visitation, we have seen a significant uplift in KPIs in the UAE,” the report said.
“The average occupancy rate across the UAE in October registered at 78.8 per cent, the highest level recorded in October since October 2015. As of October 2021, Dubai recorded the highest occupancy rate of 80.7 per cent.”
Expo 2020 Dubai has been attracting a large number of visitors. The global trade fair recorded 3 million visits in the first five weeks since it started on October 1, official data shows.
“With growing international visitation, an increasing number of global locations re-entering lockdowns and a number of planned events at Expo 2020, we envisage both international and domestic leisure tourism, combined with returning corporate tourism, will continue to underpin strong performance levels across the UAE,” said Taimur Khan, head of research, Mena at CBRE in Dubai.
Dubai International Airport has also seen a sustained recovery in daily flights in recent months as the country largely remains open to visitors from across the globe. Dubai’s percentage increase in the average number of daily flights from November 1 to November 21 stands almost three times higher than the 33.7 per cent increase seen globally, CBRE said.
“Whilst Dubai’s total flight and passenger numbers still sit a material level below pre-pandemic levels, Dubai International Airport is expected to return to full operational capacity in the coming weeks and return to pre-pandemic levels within a year,” it said.
Dubai's non-oil economy continued to grow in October, with business conditions registering the sharpest improvement in two years, boosted by a strong rebound in new orders and Expo 2020 reviving tourism.
The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index surged to 54.5 in October, from 51.5 in September, the highest level since October 2019. A reading above 50 indicates economic expansion while one below points to a contraction.
The UAE has also reached a major milestone in its coronavirus vaccination campaign, as 100 per cent of eligible people have received their first dose. More than 90 per cent have received both doses, the National Emergency Crisis and Disaster Management Authority said.
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Uefa Champions League Group F
Manchester City v Hoffenheim, midnight (Wednesday, UAE)
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
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
