The UAE expects a greater influx of Chinese tourists within the next six to 12 months, after the Asian country loosened Covid-related travel restrictions, as airlines increase the number of international flights.
The number of visitors from China to the UAE could return to pre-pandemic levels by the next Chinese New Year, Helal Al Marri, director general of Dubai's Department of Economy and Tourism (DET), said on Thursday.
"The Chinese have started coming back ... we see them now in many exhibitions and conferences and the lanes have opened up again," he said, referring to a growing number of daily flights between the two countries.
"Until they get the whole aviation network from their country fully operational again, you're always going to have supply pressures, it's a not demand issue ... we're looking forward to Chinese New Year next year, hopefully by then [we should be] back up to the levels we were at pre-Covid."
China has consistently ranked among the top-five source markets for Dubai over the past decade. The number of Chinese visitors to the tourism and business hub reached 177,000 last year, up 131 per cent from 2021, DET data indicates. However, last year's levels were down 82 per cent from 2019, due to China's zero-covid policy, which has only recently been lifted its government.
In January, long-haul airline Emirates said it would increase its operations in China ahead of the Chinese New Year and in response to strong travel demand, boosting connectivity to Guangzhou, Shanghai and Beijing as the country reopened its borders and relaxed entry restrictions.
Similarly, Etihad Airways said it would add an additional weekly frequency on its Abu Dhabi-Shanghai route from February, running twice weekly flights to Pudong International Airport. It also started running non-stop flights between Abu Dhabi and Guangzhou in October.
"We expect visitor numbers from China to rebound sharply this year as Covid-19 restrictions have been eased and there is significant pent-up demand in this important market," Khatija Haque, head of research and chief economist and Jamal Mattar, research analyst at Emirates NBD, said in a research note last week.
India is Dubai's largest tourism source market, with Oman, Saudi Arabia, the UK and Russia rounding off the top five, according to DET data for last year.
Mr Al Marri added: "Dubai and the UAE have learnt quite a long time ago ... not to rely on specific countries and to really use the airlift that we have to develop a diversified strategy. We've managed to really keep tourism, from an economic perspective, extremely buoyant compared to the rest of the world."
Dubai hosted 14.36 million international visitors last year, almost double the 2021 total of 7.28 million, and only 14 per cent below the pre-pandemic levels of 16.73 million recorded in 2019, DET data showed.
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
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
%3Cp%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.thenationalnews.com%2Fbusiness%2Feconomy%2Fislamic-economy-consumer-spending-to-increase-45-to-3-2tn-by-2024-1.936583%22%20target%3D%22_self%22%3EGlobal%20Islamic%20economy%20to%20grow%203.1%25%20to%20touch%20%242.4%20trillion%20by%202024%3C%2Fa%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.thenationalnews.com%2Fbusiness%2Feconomy%2Fuk-economy-plunges-into-worst-ever-recession-after-record-20-4-contraction-1.1062560%22%20target%3D%22_self%22%3EUK%20economy%20plunges%20into%20worst-ever%20recession%20after%20record%2020.4%25%20contraction%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.thenationalnews.com%2Fbusiness%2Feconomy%2Fislamic-economy-consumer-spending-to-increase-45-to-3-2tn-by-2024-1.936583%22%20target%3D%22_self%22%3EIslamic%20economy%20consumer%20spending%20to%20increase%2045%25%20to%20%243.2tn%20by%202024%3C%2Fa%3E%3C%2Fp%3E%0A
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
