The Abu Dhabi Government has transferred ownership of its main technology investment vehicle to Mubadala Development in a move that could ease financing for the development of a high-tech manufacturing cluster in the capital.
Advanced Technology Investment Company (Atic)was formed in 2008, shortly before it acquired a majority share in the semiconductor business of the US chip maker Advanced Micro Devices (AMD).
Bringing Atic under the wing of Mubadala, a strategic investment company owned by the Abu Dhabi Government, could be a first step toward helping the company to raise funds from international investors to pay for a planned technology cluster near Abu Dhabi International Airport.
Mubadala is rated by the world's biggest credit agencies and has a track record of selling bonds and raising funds from investors for companies it owns.
"With common executive leadership and the Government of Abu Dhabi as shareholder of both organisations, Atic's integration into Mubadala will further drive the creation of innovative industries for the benefit of Abu Dhabi and the UAE," said Waleed al Muhairi, the chief operating officer of Mubadala and chairman of Atic.
"The development of an advanced technology ecosystem in Abu Dhabi, anchored by the semiconductor sector, is a critical aspect of the Abu Dhabi Economic Vision 2030 framework that guides the emirate's development."
Before the creation of Atic, Mubadala had amassed a stake of more than 8 per cent in AMD, the main competitor of Intel. But the Government decided to deepen the relationship by creating Atic and having it buy a 55.6 per cent stake in AMD's manufacturing business.
Atic spent US$2.1 billion (Dh7.71bn) for the stake and assumed about $1.2bn of AMD debt, according to a statement from 2008.
Mubadala also pledged to more than double its stake in AMD, which is listed in the US. It owned 15.69 per cent of the company as of the end of last March, according to Bloomberg.
The involvement of Mubadala and Atic with AMD has come at a critical time for the company's chip-making and design business. It is struggling with Intel and other players in the industry to stay at the fore as technologies and manufacturing processes evolve and are streamlined.
With the Abu Dhabi Government's help, Globalfoundries, the manufacturing business of AMD and Atic, has made efforts to upgrade and build new plants across the globe.
Globalfoundries has its headquarters in California's Silicon Valley and facilities in the states of Texas and New York, as well as Dresden in Germany.
Atic also bought Chartered Semiconductor Manufacturing of Singapore in late 2009. Chartered owns or has interests in six plants in Singapore, and Atic is planning to combine its operations with Globalfoundries to increase its global scope.
Moving Atic under Mubadala's umbrella will have "no impact" on Atic's management, Mubadala said in a statement. Ibrahim Ajami is to continue as the chief executive of Atic, and Mr al Muhairi will stay as the chairman.
Standard & Poor's Ratings Services said yesterday the credit ratings on Mubadala Development and Globalfoundries Singapore were unaffected by the integration of Atic.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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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
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