UAE’s Pure Health commits $2.72bn to local procurement over next 10 years

The UAE’s largest healthcare group Pure Health has committed to spend Dh10 billion ($2.72bn) over the next 10 years on procuring products locally and supporting the country's economy.

The group signed an agreement with the Ministry of Industry and Advanced Technology (MoIAT) on the second day of the “Make it in the Emirates” forum in Abu Dhabi on Wednesday.

As part of the agreement, Pure Health and MoIAT will collaborate on initiatives to stimulate local industrial content, capitalise on opportunities within the healthcare sector and conduct training programmes to upskill the national workforce, the statement said.

“The agreement with Pure Health is a huge boost to the national ICV [In-Country Value] programme, which aims to redirect expenditure from leading national companies and government entities into the local economy by prioritising local suppliers,” Omar Al Suwaidi, undersecretary of the MoIAT, said.

Currently, 45 government entities, six national companies and 5,500 local industrial companies are participating in the ICV scheme that was launched as part of the Projects of the 50 initiative last year.

In the first year of its implementation at the federal level, the scheme has “succeeded in redirecting more than Dh40bn into the national economy”, Mr Al Suwaidi said.

In January, Abu Dhabi holding company ADQ signed a deal to merge its healthcare subsidiaries, including Abu Dhabi Health Services Company, better known as Seha, and the National Health Insurance Company (Daman) with Alpha Dhabi’s Pure Health to create the UAE’s largest healthcare provider.

ADQ also merged its healthcare entities Rafed and Union71 with Pure Health last year.

“Our agreement with the Ministry of Industry and Advanced Technology is a pivotal step in our long-term plan to localise knowledge, as we are already a part of the Fourth Industrial Revolution,” Farhan Malik, managing director of Pure Health, said.

Pure Health owns 28 hospitals, 100 clinics and more than 160 laboratories across the UAE, Ahmed Al Bastaki, chief commercial officer of Rafed, told The National on the sidelines of the forum.

MORE US ELECTION OPINION

David Frum: Trump's bungling of coronavirus will reshape US politics

Hussein Ibish: How will 'President Joe Biden' deal with the Middle East?

Raghida Dergham: Can Trump's coronavirus strategy help reboot his re-election bid?

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

Zayed Sustainability Prize

Clean water and solar homes: Zayed prize finalists present sustainability solutions

Youth take centre stage for this year's Zayed Sustainability Prize

What is the Zayed Sustainability Prize?

While you're here

Nasser bin Nasser: Is US-China conflict in West Asia inevitable?

Sholto Byrnes: Time for an uninhibited China to lead Asia

Damien McElroy: BRI has changed the rules of the game

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5