Saudi Aramco, the world’s largest oil-exporting company, signed a preliminary agreement with China's Petroleum and Chemical Corporation, better known as Sinopec, to boost collaboration in oil and gas projects in the kingdom.
The two companies will look for potential opportunities in refining and petrochemicals, engineering, procurement and construction, oilfield services, upstream and downstream technology, as well as carbon capture and hydrogen processes, Aramco said on Wednesday.
The companies will also discuss opportunities for the establishment of a local manufacturing centre in the King Salman Energy Park, a big industrial project in the eastern province of the kingdom that is being developed by the state-owned energy company.
“This latest collaboration will help to further advance our strategic relationship with Sinopec into key areas of mutual benefit within the kingdom,” said Mohammed Al Qahtani, Aramco's senior vice president of downstream.
The two companies are already teaming up in joint venture projects in China and in Saudi Arabia.
These include Fujian Refining and Petrochemical Company and Sinopec Senmei (Fujian) Petroleum Company in China, as well as the Yanbu Aramco Sinopec Refining Company in Saudi Arabia.
The latest agreement “introduces a new chapter of our partnership in the kingdom”, Sinopec president Yu Baocai said.
China, the world's second-largest economy, is building a number of projects in different countries as part of its Belt and Road initiative.
“The two companies will join hands in renewing the vitality and scoring new progress of the Belt and Road Initiative and Vision 2030,” he said.
The latest agreement comes at a time when Aramco is continuing to expand its operations and partnerships to boost growth.
Earlier this week, the company said it would acquire Kentucky-based motor oil maker Valvoline's lubricants business for $2.65 billion.
The deal, subject to customary closing conditions and regulatory approvals, is expected to close in late 2022 or early 2023.
In May, Aramco also said it was exploring further collaboration with Thailand’s national oil company PTT, as it expands its downstream presence in Asia.
The two companies signed a preliminary agreement to strengthen co-operation across crude oil sourcing and the marketing of refining and petrochemical products and liquefied natural gas.
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Engine: 2.0-litre in-line four-cylinder turbo
Gearbox: 7-speed automatic
Power: 211hp at 5,500rpm
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Fuel economy, combined: 6.0 l/100 km
Price: Dh235,000
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
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
8.15pm: Emirates Airline Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
