The Abu Dhabi-Japan Economic Council held a forum on Friday that saw a number of deals in advanced sectors such as AI and smart cities signed at the Tokyo event.
“Our strategy is clear – we are building an investment landscape that is as resilient as it is forward-looking, as globally integrated as it is locally rooted,” Shihab Alfaheem, the UAE's ambassador to Japan, said at the forum.
“By aligning our strengths, we will unlock new opportunities for growth and establish a framework for sustainable prosperity that benefits our nations and the wider global community.”
Abu Dhabi and Japan are set to benefit from co-operation in "leading edge" sectors, including advanced services, hydrogen and artificial intelligence, Jasem Al Awadhi, director general of economic affairs at the Abu Dhabi Department of Economic Development, told The National.
"These are all areas that we are more than happy to work together with our Japanese counterparts on ... we've been championing free and equitable trade between countries, but we also appreciate letting things grow organically," he said.
Abu Dhabi and Japan have had strategic long-term relations – the UAE supplies about 40 per cent of the Asian nation's energy requirements – and the ties present opportunities to boost co-operation in other key areas, said Arvind Ramamurthy, chief market development officer of Abu Dhabi's ADGM.
"We believe that there's an opportunity here to look at other sectors ... whether it's semiconductors, AI, health care, technology and financial services – and then build deeper, stronger relationships between the two nations," he told The National.
Meanwhile, Adio also announced that it is expanding the operations of its unit in San Francisco to support the global growth of Abu Dhabi’s economic clusters, particularly for health technology, the Abu Dhabi Media Office said on Thursday.
At the centre of the plan is Abu Dhabi’s Health, Endurance, Longevity and Medicine cluster (Helm), a collaboration between Adio, the Abu Dhabi Department of Economic Development and the Department of Health.
Helm, announced at last month's Abu Dhabi Global Health Week, is projected to contribute about $25.6 billion to Abu Dhabi's economy, attract $11.5 billion in investments and unlock 30,000 new jobs by 2045.
Adio's expansion in San Francisco – the home of Silicon Valley and a hotbed of the latest technologies and venture capital – will help it tap into the global multi-trillion dollar healthcare market and further position Abu Dhabi on the global innovation and regulatory stage, especially for health care and other key sectors, the Media Office said.
“By expanding our operations in San Francisco, we’re not only opening new doors to Abu Dhabi’s business ecosystem, we’re building two-way bridges for capital, innovation and impact across multiple innovation-driven sectors,” said Ahmed Al Zaabi, chairman of Added.
The event comes after the Abu Dhabi Chamber of Commerce and Industry and the Japan External Trade Organisation on Thursday signed an initial agreement to deepen business relations and create new opportunities for collaboration, during another the Abu Dhabi-Japan Business Connect Forum in the Japanese capital.
The engagements between Abu Dhabi and Japan are also positioned to boost negotiations for a Comprehensive Economic Partnership Agreement between the UAE and Japan, which is expected to be completed by the end of 2025.
Abu Dhabi has been focusing on diversifying its economy away from hydrocarbons, with non-oil trade growth a key part of the plan.
The UAE and Japan have continued to boost collaboration, with bilateral trade growing at a compound annual growth rate of 11.9 per cent during the past five years.
The Emirates' investments in Japan have more than doubled over the past five years, while it has attracted more than 80 per cent of Japanese investments in the Middle East, Mr Al Zaabi said.
Meanwhile, bilateral trade between the UAE and US totalled $34.4 billion in 2024, data from the UAE embassy in Washington shows.
The US exported more than $26.9 billion of goods and services to the UAE last year, which is an 8.5 per cent annually increase from 2023.
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
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Itcan profile
Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
