Reliance launches $1m UAE subsidiary for trading oil and petroleum products

Reliance Industries, India’s largest private petrochemicals company controlled by billionaire Mukesh Ambani, formed a wholly owned subsidiary in the UAE for trading in oil, petroleum, petrochemical products and agricultural commodities.

The unit, Reliance International Limited, will be incorporated in the Abu Dhabi Global Market, the company said in an exchange filing to the Bombay Stock Exchange, where its shares are traded, on Saturday.

The Indian conglomerate invested 74.28 million rupees ($1m) in the new subsidiary, the filing showed.

The unit is yet to start its business operations, Reliance said.

“RINL is incorporated to undertake activities relating to, among others, trading of crude oil, petroleum products, petrochemicals and agricultural commodities,” it said.

No governmental or regulatory approvals were required for the investment, Reliance said in the filing.

The formation of the subsidiary follows an announcement in June that Reliance Industries will develop a major chemicals facility in partnership with Abu Dhabi National Oil Company at the new Ta’ziz Industrial Chemicals Zone in Ruwais.

Reliance Industries said in June it will develop a new chemicals facility in partnership with Abu Dhabi National Oil Company at the new Ta’ziz Industrial Chemicals Zone in Ruwais. Photo: Reuters

The deal, the first for Mr Ambani’s Reliance Industries in the Middle East, was estimated to be worth $2 billion.

In June last year, Abu Dhabi’s strategic sovereign fund Mubadala Investment Company invested $1.2bn in India’s telecoms provider Jio Platforms owned by Reliance. Abu Dhabi Investment Authority also invested $753.4m for a 1.16 per cent equity stake in Jio in June last year.

India is a key importer of Middle East crude, particularly from the UAE, and has looked to strengthen its energy partnership over the past few years.

Reliance, Adnoc and Saudi Aramco have previously joined forces to develop a massive $70bn greenfield integrated refining and petrochemicals complex in Maharashtra state on India’s west coast.

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

Reliance launches $1m UAE subsidiary for trading oil and petroleum products

Reliance International will be incorporated in the Abu Dhabi Global Market free zone

Ten tax points to be aware of in 2026