UAE leads region in biotechnology

The UAE is leading the Arab world in biotechnology as researchers in the country look for ways to make the energy sector more sustainable, including the development of biofuels.

This year, for the first time, the UAE was included in the Scientific American Worldview Report and Bio-Innovation Scorecard, a list issued by the Biotechnology Industry Organisation (Bio) of 54 countries demonstrating biotech innovation and potential.

The UAE clinched 40th spot, behind China and just ahead of Russia. The Emirates was also named the top Arabian Gulf state on the list, ahead of Qatar at 42nd, Saudi Arabia at 45th and Kuwait at 53rd.

"The UAE is doing some of the most interesting research right now on some of the hottest topics out there," says Matthew Carr, the managing director for the industrial and environmental sections at Bio.

There are several factors at play - geography, infrastructure, economic benefits and available capital, for example - that are positioning the country as a global sweet spot for biotech innovation.

Some of the UAE's innovative work in industrial biotech echoes the cutting-edge research being presented at this month's World Congress of Industrial Biotechnology, the world's largest industrial biotechnology event for leaders, investors and policymakers in biofuels, biobased products and renewable chemicals.

This year's congress will take place on June 16 through June 19 in Montreal, Canada. The conference will be celebrating its 10th anniversary.

Last year, companies based in the UAE such as Epygen, an enzyme biotechnology company headquartered in Dubai, and researchers at the Masdar Institute of Science and Technology focused on producing sustainable jet fuel from plants, took the spotlight at the conference.

Epygen has been working on enhanced oil recovery that involves finding enzymes that can be injected down into oil wells to bring out more oil than normally expected.

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In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

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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Title: Assistant dean of students and director of athletics

Favourite sport: soccer

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Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates

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What: Brazil v South Korea
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Saturday (All UAE kick-off times)

Lecce v SPAL (6pm)

Bologna v Genoa (9pm)

Atlanta v Roma (11.45pm)

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Juventus v Brescia (6pm)

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