Adding new assets to the Emirates Investment Authority will invigorate the role of an institution that manages the sovereign assets of the UAE’s Federal government.
It has been instructed "to prepare a new government investment strategy for the next stage", Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid said as he announced that four significant entities were being attached to it; the national postal service Emirates Post, the Emirates General Transportation and Services Corporation, the Federal Electricity and Water Authority and the Emirates Real Estate Corporation. The EIA has held custody of, and managed Emirates Post and Emirates Transport on behalf of the government since 2013, according to its website. The Emirates Investment Authority did not clarify when contacted by The National if the decision meant that this status had now changed.
The Authority will also now manage a new National Social Security Fund, which will be supervised by Obaid Al Tayer, who is Minister of State for Financial Affairs and already chairs an executive committee overseeing the Emirates Investment Authority.
Mr Al Tayer also sits on the Authority’s main board, which is chaired by Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, with Minister of Cabinet Affairs and The Future, Mohammed Al Gergawi, as deputy chairman.
The Authority has two main activities – asset management and strategic assets.
The asset management arm has a remit to invest in a full range of global assets including equities, fixed income, hedge funds, private equity and real estate, among others.
Like other sovereign funds, the Emirates Investment Authority can take a long term view and usually takes investment decisions based on a 7-10 year investment horizon, according to an inaugural report produced by the authority in 2017.
The strategic assets arm, meanwhile, controls its substantial investments in a range of businesses.
Emirates Post Group, for instance, houses the UAE’s national postal service delivering to more than 200 countries, as well as the Wall Street Exchange Centre foreign exchange business.
Emirates Transport is best known for providing fleets of school buses, but diversified into a range of other activities including fuel transportation and general logistics deliveries. By the end of last year, it had a fleet of about 40,000 vehicles and employed 30,000 people.
The Federal Electricity and Water Authority owns all of the water and electricity generation, transmission and distribution assets in the Northern Emirates of Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah.
The Emirates Real Estate Corporation, meanwhile, develops, owns and manages government buildings. Its portfolio includes the Ministry of Education, Ministry of Infrastructure and the Ministry of Foreign Affairs and International Co-operation buildings in Dubai as well as the Ministry of Foreign Affairs building in Abu Dhabi. Internationally, it has built UAE Embassies in Germany, Canada and Turkmenistan.
All of these assets now form part of a federal sovereign fund whose role, according to its 2017 report, is as a “long-term manager of intergenerational equity”.
Globally, there is a trend by sovereign wealth funds to invest more in their domestic economies, either through collating state-owned stakes, investing fund surpluses, annual budget distributions or as incentives to attract further foreign investment, the International Forum of Sovereign Wealth Funds said in a report last month.
In 2019, 21 per cent of sovereign funds' private equity investments were in their home markets, up from just 10 per cent in 2015, it said.
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Oppenheimer
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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
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
