The contribution of the UAE’s non-oil sector to the country's total economic output rose to 72.3 per cent last year, as the Arab world's second-biggest economy recovered strongly from the pandemic-induced slowdown.
The non-oil sector accounted for 71.3 per cent of the UAE's gross domestic product in 2020, state-news agency Wam reported, quoting the Federal Competitiveness and Statistics Centre's data.
The country's economy grew 3.8 per cent last year, beating the World Bank's forecast of 2.1 per cent, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said earlier this month.
"At current prices, the output was Dh1.49 trillion ($405.71 billion),” Sheikh Mohammed said.
The growth of the non-oil sector last year was spurred by hotels and restaurants, wholesale and retail, and health and social services sectors, accounting for 21.3 per cent, 14.1 per cent and 13.8 per cent of GDP in 2021, respectively.
The UAE's non-oil economy has rebounded strongly from the pandemic, expanding an annual 3.8 per cent last year, driven by a 7.8 per cent rise in the fourth quarter, as Covid-related restrictions and travel curbs eased, according to data from the Central Bank of the UAE.
Dubai alone hosted 7.28 million international overnight visitors between January and December 2021. International visitors to the emirate crossed 3.4 million in the fourth quarter of last year, representing 74 per cent of the total pre-pandemic tourist arrivals in the same period in 2019.
Dubai International Airport, the world's top airport in terms of passenger traffic, last year recorded its busiest fourth quarter since the outbreak of the pandemic, with the number of passengers rising to 11.8 million, driven by Expo 2020 Dubai.
Abu Dhabi's economy has also recovered strongly from the pandemic-driven slowdown. The emirate's non-oil economy rose an annual 4.1 per cent in 2021, driven by robust government policies.
The growth was led by the agriculture, forestry and fishing sectors, which surged by more than 23 per cent on a yearly basis, data from the Statistics Centre Abu Dhabi showed.
Overall, the UAE's economy is expected to grow 4.9 per cent this year, Japan's largest lender MUFG said, while Emirates NBD forecasts growth of 5.7 per cent and Abu Dhabi Commercial Bank estimates a 5.4 per cent expansion, supported by a sharp rise in the oil sector.
The country's non-oil economy is projected to grow 3.9 per cent this year, according to the Central Bank, while Emirates NBD estimates a rise of 4 per cent and ADCB forecasts an expansion of 3.4 per cent.
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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
The specs
Engine: 3.8-litre twin-turbo V8
Power: 611bhp
Torque: 620Nm
Transmission: seven-speed automatic
Price: upon application
On sale: now
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
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Quick facts on cancer
- Cancer is the second-leading cause of death worldwide, after cardiovascular diseases
- About one in five men and one in six women will develop cancer in their lifetime
- By 2040, global cancer cases are on track to reach 30 million
- 70 per cent of cancer deaths occur in low and middle-income countries
- This rate is expected to increase to 75 per cent by 2030
- At least one third of common cancers are preventable
- Genetic mutations play a role in 5 per cent to 10 per cent of cancers
- Up to 3.7 million lives could be saved annually by implementing the right health
strategies
- The total annual economic cost of cancer is $1.16 trillion
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The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
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5 Amancio Ortega $67.9 billion
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The biog
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Position: Head of the Criminal Registration Department at Hatta police
Family: Five sons and three daughters
The first female investigator in Hatta.
Role Model: Father
She believes that there is a solution to every problem
Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
