Dubai is building the Mohammed bin Rashid Al Maktoum Solar Park in different phases. It is the world’s largest single-site solar park with a total capacity of 5,000 megawatts. Photo: Dewa
Dubai is building the Mohammed bin Rashid Al Maktoum Solar Park in different phases. It is the world’s largest single-site solar park with a total capacity of 5,000 megawatts. Photo: Dewa
Dubai is building the Mohammed bin Rashid Al Maktoum Solar Park in different phases. It is the world’s largest single-site solar park with a total capacity of 5,000 megawatts. Photo: Dewa
Dubai is building the Mohammed bin Rashid Al Maktoum Solar Park in different phases. It is the world’s largest single-site solar park with a total capacity of 5,000 megawatts. Photo: Dewa

Dubai boosts production capacity at fifth phase of mega solar park project


Fareed Rahman
  • English
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Dubai increased the production capacity of the first project in the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park as the emirate seeks to boost the share of clean power in its total energy mix to reduce emissions.

The project's total capacity increased to 330 megawatts from 300MW owing to the use of the latest photovoltaic technologies, Dubai Electricity and Water Authority said on Sunday.

“At Dewa, we work ... to promote sustainability and innovation and transform (Dubai) into a sustainable green economy by increasing the share of clean and renewable energy,” said Saeed Al Tayer, managing director and chief executive of Dewa.

“This achieves the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy to provide 100 per cent of Dubai’s total power capacity from clean energy sources by 2050.”

Dubai is building the Mohammed bin Rashid Al Maktoum Solar Park, which is the world’s largest single-site solar park with a total capacity of 5,000MW. The fifth phase with a total investment of Dh2.05 billion ($559 million) is 60 per cent complete, according to Dewa.

The project is part of Dubai's strategy to increase the share of clean power in its energy mix to 13.3 per cent in the first quarter of this year, from the existing 11.38 per cent.

"Dewa is implementing more projects with a total capacity of 1,333MW using solar photovoltaic and concentrated solar power in addition to future phases to reach 5,000MW by 2030,” Mr Al Tayer said. The Dubai utility's solar-park mega project has attracted about Dh40bn of investments since it was launched in 2012.

The fifth phase is on schedule and is set to become operational in different stages until 2023, said Waleed bin Salman, executive vice president of business development and excellence at Dewa.

A consortium led by Saudi Arabia’s Acwa Power and Gulf Investment Corporation is building the 900MW fifth phase of the solar park in Dubai. Dewa set up the Shuaa Energy 3 partnership to complete the project with Acwa Power consortium holding a 40 per cent stake and the remainder by Dewa.

Last month, the Dubai Supreme Council of Energy met online under the chairmanship of Sheikh Ahmed bin Saeed to review the emirate’s plans to achieve carbon neutrality by 2050.

The UAE aims to become carbon neutral by 2050, with clean and renewable energy investment worth Dh600bn planned over the next three decades.

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The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

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

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Date started: Okadoc, 2018

Founder/CEO: Fodhil Benturquia

Based: Dubai, UAE

Sector: Healthcare

Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth

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Updated: January 16, 2022, 10:24 AM