Artificial intelligence research and adoption across industries will help achieve the UAE’s economic diversification goals and generate economic and social value, said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and President-designate of the Cop28 summit.
“Projections show AI solutions are on course to contribute an estimated $13 trillion to the global gross domestic product by 2030, optimising the industries of tomorrow and dramatically improving the lives of billions of people in the process,” Dr Al Jaber said during a visit to Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi on Saturday.
Dr Al Jaber, who is also chairman of the university, was accompanied by Peng Xiao, chief executive of Abu Dhabi’s AI company G42.
As the first university to have a singular focus on AI, the institution aims to attract students from around the world to advance the technology and propel the UAE’s economic diversification efforts. It was established in 2019.
The UAE was among the first nations to see an opportunity in AI for its economy. In 2017, the government rolled out an AI strategy, UAE 2031, outlining plans to use the technology to make governance more efficient and naming eight sectors it aims to transform including space, renewable energy, water and education.
The UAE also appointed the world’s first Minister of State for Artificial Intelligence, Omar Al Olama.
AI is being tipped to be the UAE’s most important industry over the next 10 years. It ranked ahead of construction, electronics, aerospace, robotics, design engineering and IT and cybersecurity in a poll of technology and engineering employees in the Emirates by the UK-based Institution of Engineering and Technology.
“AI will contribute to the UAE’s net zero strategic initiative by 2050 and help unlock advances in climate progress,” Dr Al Jaber said.
“Technologies being developed today have the potential to increase energy efficiency, reduce emissions and ensure that economic growth and climate progress go hand-in-hand, while advances in technologies like AI, analytics and robotics will enable us to better decarbonise high emitting sectors, and measure and reduce energy consumption and emissions.”
The minister met with researchers from the university and the Inception Institute of Artificial Intelligence to discuss research projects that will deliver on the UAE’s national priorities, including sustainable environment and infrastructure; world-class health care and education systems, and exploring large language models, particularly in Arabic, the university said in a statement.
Dr Al Jaber was updated on a joint MBZUAI-IBM project that aims to provide a data engine to identify urban areas in Abu Dhabi with excessive heat, which could be used to inform climate and sustainability policies.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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
