The World Bank and Jeddah-based Islamic Development Bank (IsDB) are teaming up to support projects in the Mena region that could involve up to $6 billion in financing until 2026.
As part of the partnership, the two lenders will focus on improving the lives of people in the region through better management of water, energy and food resources in the face of threats posed by climate change, the World Bank said on Wednesday.
They will also focus on empowering women and young people with skills to grow in jobs and participate in the digital transition, as well as drive greater regional and cross-border trade and co-operation.
Miga, the political-risk insurance arm of the World Bank, will collaborate closely with the IsDB to mitigate political risk, alongside the World Bank’s International Finance Corporation, which will work to draw in more private sector investment.
The partnership was unveiled on the sidelines of the Future Investment Initiative summit in Riyadh.
“The World Bank is recruiting new partners and reimagining partnerships,” World Bank President Ajay Banga said.
The World Bank is seeking to strengthen partnerships with financial institutions globally and aims to expand the scope of lending to include climate finance, as well as cheaper and longer maturity funding.
In August, it unveiled a partnership with the Inter-American Development Bank to boost support for net-zero-deforestation efforts in the Amazon, strengthen the Caribbean’s resilience to natural disasters and bridge the digital-access gap across Latin America and the Caribbean.
During this month’s World Bank-International Monetary Fund Annual Meetings, the Washington-based lender also announced a collaboration with nine multilateral development banks, including the African Development Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank.
The move is intended to increase financing, boost collective efforts on climate, enhance country-level co-ordination, strengthen joint financing and stimulate private sector engagement.
“Our member countries continue to face overlapping crises in an increasingly uncertain global landscape, making a compelling case for multilateral development banks to respond together,” IsDB president Muhammad Al Jasser, said.
The IsDB, which was founded in 1975, aims to foster economic development and the social progress of member countries and Muslim communities in non-member countries.
The bank’s main function is to provide various forms of development assistance for poverty alleviation and human development while forging economic co-operation and enhancing the role of Islamic finance in the social and economic development of member countries, according to its corporate profile.
In May, the IsDB approved $5.4 billion in development financing for projects in 24 member countries as it seeks to bridge funding gaps in critical sectors.
The new partnership with the World Bank “walks the talk, with a new sense of urgency and determination to give opportunities and hope to the people we serve”, Mr Al Jasser said.
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
