The UAE and Egypt have entered into an agreement to build one of the world's largest wind farms in Egypt.
President Sheikh Mohamed and Egyptian leader Abdel Fattah El Sisi witnessed the signing of an agreement between Masdar, Egypt's Infinity Power and Hassan Allam Utilities to develop a 10-gigawatt onshore wind project.
The memorandum of understanding was signed in Sharm El Sheikh by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Special Envoy for Climate, and chairman of Masdar.
Sheikh Mohamed said the deal was "consistent with our commitment to advance renewable energy solutions that support sustainable development".
Dr Al Jaber said the scale of the project — "one of the largest winds farms in the world" — was a "testament to the renewable energy ambitions of the United Arab Emirates and the Republic of Egypt, and demonstrates Masdar’s status as a global leader in clean energy".
When completed, the 10-gigawatt wind farm will produce 47,790 gigawatt hours of clean energy annually and offset 23.8 million tonnes of carbon dioxide emissions — equivalent to about 9 per cent of Egypt’s current carbon dioxide output.
The project will be part of Egypt’s Green Corridor initiative — a grid dedicated to renewable energy projects — and will contribute to Cairo's goal of ensuring renewable energy makes up 42 per cent of the country's energy mix by 2035.
The wind farm will also save Egypt an estimated $5 billion in annual natural gas costs, and help create as many as 100,000 jobs, state news agency Wam said.
Direct employment in the construction phase is estimated at about 30,000 jobs, with as many as 70,000 people being employed indirectly. After construction, about 3,200 jobs will be added for operation and maintenance.
The world's largest wind farm is in Gansu, China. It can generate 20 gigawatts.
In April, Masdar and Hassan Allam Utilities signed two deals with Egyptian state-backed organisations to co-operate on the development of 4-gigawatt green hydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast.
In the first phase of the project, a green hydrogen manufacturing facility will be developed and operational by 2026, able to produce 100,000 tonnes of e-methanol annually for bunkering in the Suez Canal.
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