Aircraft maintenance, repair and overhaul service (MRO) provider GAL said it secured a Dh11 billion ($2.9bn) contract from the UAE Air Force and Air Defence (Afad).
GAL, a unit of UAE defence conglomerate Edge, will provide Afad with specialised MRO solutions under a three-year, performance-based logistics (PBL) contract, the company said at the Dubai Airshow on Sunday.
The PBL arrangement allows military customers to seek aviation MRO services organised under a cost per flight-hour model and also allows for ongoing improvements.
The contract "underscores our performance excellence and reliability as one of the region’s leading MRO service providers", GAL vice chairman Sheikh Mohammed bin Hamad said.
The company, which offers service to both military and civilian customers, said the agreement will support Afad with its "operational readiness while providing comprehensive safety and flexibility".
The agreement, the first such deal for the company, will also help it to establish it as one of the Middle East’s top aviation MRO services provider and will also streamline Afad's processes, align synergies and optimise manpower.
Defence spending in the six-member GCC economic bloc is expected to recover to pre-coronavirus levels by 2024 after declines that began this year due to the impact of the Covid-19 crisis, defence intelligence specialist Janes said in a report in February.
The strong economic bounce back is expected to support the sovereigns’ defence expenditure as revenue increase, the report said.
GAL is also opening the first regional distribution centre for aircraft logistics in Abu Dhabi in partnership with the China National Aero-Technology Import & Export Corporation, China's state-backed defence contractor, it said separately on Sunday.
The new Middle East and Africa Distribution Centre (MEADC) will significantly improve the availability of aircraft spare parts in the UAE and the wider Mena region.
“This collaboration is a testament to GAL’s competitive efforts to expand our presence and provide streamlined solutions to complex supply chain and MRO requirements,” said Khalid Al Breiki, president of Mission Support at Edge and managing director of GAL.
GAL understands the challenges posed by spare parts distribution and the regional distribution centre will “significantly improve access to these essential elements, as well as increase productivity and reduce complicated logistics, which arise when co-ordinating with international vendors”, he said.
Halcon, another Edge Group unit entity that specialises in the production and supply of precision-guided weapons, also said it has achieved of a “series of major developments for its SkyKnight air defence missile system”, including the completion of the system’s naval missile concept design, it said.
Halcon first unveiled SkyKnight, at the International Defence Exhibition in Abu Dhabi in February. It is the first UAE-designed and manufactured counter-rocket, artillery and mortar missile system, which is intended to counter the full spectrum of modern threats, the company said on Sunday.
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Number of tracks: 10
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Australia squads
ODI: Tim Paine (capt), Aaron Finch (vice-capt), Ashton Agar, Alex Carey, Josh Hazlewood, Travis Head, Nathan Lyon, Glenn Maxwell, Shaun Marsh, Jhye Richardson, Kane Richardson, D’Arcy Short, Billy Stanlake, Marcus Stoinis, Andrew Tye.
T20: Aaron Finch (capt), Alex Carey (vice-capt), Ashton Agar, Travis Head, Nic Maddinson, Glenn Maxwell, Jhye Richardson, Kane Richardson, D’Arcy Short, Billy Stanlake, Marcus Stoinis, Mitchell Swepson, Andrew Tye, Jack Wildermuth.
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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