The UAE will streamline operations for businesses by providing digital services, simplifying procedures and reducing costs for investors and owners of industrial businesses, as part of a new partnership signed between the Ministry of Foreign Affairs and International Co-operation and the Ministry of Industry and Advanced Technology.
The partnership will focus on providing digitised authentication services for industrial businesses, serving as a boost to the overall investment climate in the country and attracting more and talent from around the world, MoFAIC said in a statement on Thursday.
MoFAIC will support the provision of authentication services to factories through the digital services platform of MoIAT, with fees for industrial investors to be further reviewed.
“MoFAIC is working to improve customer experience and facilitate business through a package of upgrades that include digital transformation in line with the directions of the UAE government,” Faisal Lutfi, assistant under-secretary for consular affairs at MoFAIC, said.
The collaboration between MoFAIC and MoIAT is part of the 'Projects of 50', a series of major projects aimed at boosting the UAE's economy.
The move supports the UAE's digital push — this week, the UAE Cabinet approved a strategy in which the digital economy will contribute 20 per cent to the gross non-oil national economy in the coming years.
The partnership will also help boost the UAE’s high ranking in business facilitation indicators, enhance the competitive environment and create opportunities to access global markets in order to attract more investment, Mr Lufti said.
The UAE was ranked first globally in the latest edition of the Global Entrepreneurship Index, outperforming major global economies such as the US, the UK, Japan, Canada, South Korea and some EU countries. That is up from the fourth place in 2021 on the index, which is compiled by London-based Global Entrepreneurship Monitor.
The partnership will also accelerate the authentication procedures for businesses in line with the new industrial services platform launched by MoIAT to support the performance of the industrial sector, said Osama Amir Fadhel, assistant under-secretary for industrial accelerators at the ministry.
The number of customs exemption transactions and invoices, and certificates of origin from factories that required authentication totalled 175,000 in the past year, he said.
“Simplifying procedures and facilitating invoice authentication services for manufacturers improves ease of doing business and enhances the investment climate in the country,” Mr Fadhel said.
“This, in turn, will support the National Strategy for Industry and Advanced Technology and ensure the growth and prosperity of the industrial sector, enhance its competitiveness and support digital transformation processes in government procedures and services.”
Customs exemptions are granted to encourage the establishment of new industrial projects and includes the import of industrial products such as machinery, equipment, spare parts, raw and intermediate materials and semi-manufactured goods for production purposes.
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
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
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Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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